The Silicon Valley battery startup Lyten acquired most Northvolt assets after the Swedish battery manufacturer filed bankruptcy to pursue European battery self-sufficiency goals.
Lyten announced the acquisition of Northvolt assets through Stellantis and FedEx backing at a reduced price which includes operations in Poland and the main factory in northern Sweden. The company will start lithium-ion battery cell manufacturing by 2026 before implementing its lithium-sulfur technology for future operations.
Northvolt filed for bankruptcy after its quality problems and unmet targets forced the company to shut down despite having $50 billion in client orders from BMW, Volkswagen and Audi. The company plans to recover its former customers through performance consistency and yield improvement.
Dan Cook who leads Lyten announced the company will start by serving one automotive client while working to restore customer trust. The European operations of Lyten will welcome multiple former Northvolt executives but Peter Carlsson will not return to the company.
The Swedish deputy prime minister declared this acquisition essential for European energy independence. The acquisition takes place during EU policymakers’ efforts to reduce dependence on Chinese battery suppliers. The company’s dual market strategy for North America and Europe enables Lyten to benefit from increasing local content regulations.
