US battery developer Lyten wants to acquire Northvolt

The insolvent Swedish battery cell manufacturer Northvolt appears to have found a potential buyer. US-based Lyten wants to take over all remaining European sites – including the factory under construction in northern Germany. Initial reactions from local politicians have been broadly positive.

Northvolt and Lyten are no strangers. In November last year, amid Northvolt’s mounting crisis, Lyten acquired the Californian battery production facilities of Northvolt subsidiary Cuberg. This was followed in July by the takeover of Northvolt Dwa ESS in Gdansk, Poland – a production, research and development facility for stationary energy storage systems.

Now Lyten is stepping up its commitment. Founded in 2015 in San Jose, California, the lithium–sulphur battery specialist plans to acquire Northvolt’s remaining sites in Sweden and Germany – though not (yet) its Canadian operations. The package includes Northvolt Ett and Ett Expansion in Skellefteå, Northvolt Labs in Västerås, and Northvolt Drei in Heide, Germany. Lyten will also take over all remaining Northvolt intellectual property rights, with several members of the current management team expected to join the company. Talks are also under way with the Canadian and Québec governments to secure Northvolt Six in Québec, where a 15 GWh first-phase production facility is being built.

Assets valued at $5 billion

Financial details have not been disclosed. Lyten says the assets were recently valued at around USD 5 billion (approximately €4.3 billion) – though it has not confirmed whether this figure reflects the purchase price. The deal covers an operational production capacity of 16 GWh, plus a further 15 GWh under construction at the Heide site. Lyten says the acquisition will be financed entirely through equity investments from private backers and expects completion in Q4 2025.

“This is a defining moment for Lyten,” said Dan Cook, Lyten CEO and co-founder. “Lyten’s mission is to be the leading supplier of clean, locally sourced and manufactured batteries and energy storage systems in both North America and Europe. The acquisition of Northvolt’s assets brings the facilities and Swedish talent to accelerate this mission by years, just at the moment when demand for Lyten lithium-sulfur batteries is growing exponentially to meet energy independence, national security, and AI data center needs.”

Production in Skellefteå to restart

Lyten intends to rehire a large proportion of Northvolt’s former workforce and resume halted operations at Northvolt Ett in Skellefteå and at Northvolt Labs in Västerås as soon as the deal closes. In the short term, production is likely to remain focused on NMC cells. Whether Lyten will later switch to its own lithium–sulphur chemistry remains open. The company currently manufactures lithium–sulphur batteries in Silicon Valley, mainly for the drone and defence markets.

According to Lyten, cooperation with Northvolt’s main customers is constructive – particularly with Scania, reportedly the only recent buyer of battery cells from Skellefteå. Scania had also sought to rescue Northvolt Labs earlier this year, which will now be part of Lyten’s acquisition.

Collaboration with Germany for Heide site

Lyten says it is already working with the German government to continue construction of the Heide factory in Schleswig-Holstein, initially planned for 15 GWh capacity. Under Northvolt’s original plans, the plant was to produce cells for around one million electric cars per year.

According to NDR, Nicolas Steinbacher – formerly part of Northvolt’s German management team – will become managing director for the Heide site. “We have a lot of hard work ahead and I am looking forward to setting the new course for this major industrial project,” he said. In reality, construction, even though it began in March 2024, has not yet gone far beyond site preparation, fencing and utility connections.

Positive reactions from Schleswig-Holstein

Reactions in Schleswig-Holstein have been largely positive. Minister-President Daniel Günther (CDU) welcomed Steinbacher’s appointment but warned that “a few hurdles” remain before the deal can be finalised, particularly regarding conditions in Sweden and Germany. SPD parliamentary leader Serpil Midyatli said the move was encouraging after “so many negative headlines” but stressed that the party would monitor whether Lyten’s plans match regional interests.

The Heide project has long been controversial due to substantial public funding commitments. Northvolt received a €600 million convertible loan from state development bank KfW despite its precarious finances, as well as pledges of around €700 million in federal and state subsidies. Talks between Lyten and the German government will now determine whether these subsidies can be transferred to the new owner.

lyten.com, ndr.de (in German)