European Battery Optimism Reinforced by Northvolt Takeover

Lyten Expands Globally with Northvolt Acquisitions

Lyten, a U.S.-based lithium-sulfur battery startup, is making significant strides in the global battery market through a series of acquisitions of Northvolt's assets in Europe and North America. This expansion comes as both companies and governments in the West seek energy independence from Chinese battery supply chains.

The acquisition includes Northvolt's physical properties in Skelleftea, Sweden; Västeras, Sweden; and Heide, Germany, as well as all Northvolt intellectual property. This deal also includes the acquisition of Northvolt Dwa, Europe's largest BESS manufacturing facility, located in Gdansk, Poland, a deal expected to close in the third quarter of 2025.

Lyten has secured over $200 million in additional equity investment from backers, bringing its total investments to over $625 million. With this capital, Lyten aims to rapidly expand its manufacturing capabilities and onboard world-leading talent in both the U.S. and European markets.

The core members of Northvolt's energy storage engineering team will be joining Lyten in Stockholm, Sweden, and VMS and future BESS products will be manufactured in the Polish facility. Lyten intends to rehire a significant portion of Northvolt's workforce to retain local expertise and scale operations effectively.

Lyten's current strategy is to leverage these assets to rapidly accelerate its scale-up in both the battery energy storage system (BESS) market and the European market, while also expanding production in North America. The company plans to restart production at Northvolt's halted facilities, initially focused on nickel manganese cobalt (NMC) cells, but with a medium-term vision to integrate Lyten’s proprietary lithium-sulfur technology.

The expansion reinforces Lyten's objective to become a leading global supplier of clean, locally sourced, and manufactured battery solutions. This move aims to support energy independence, national security, and AI data center growth in North America and Europe.

Lyten's market focus includes immediate scaling for drone, defense, and stationary storage applications, alongside longer-term efforts targeting automotive and space markets. The startup was established in 2015 and is supported by Stellantis and FedEx.

This series of acquisitions, valued at approximately $5 billion, grants Lyten operational production capacity around 16 GWh plus an additional 15 GWh under construction, with infrastructure capable of scaling beyond 100 GWh. The acquisitions also provide access to advanced R&D centers in Europe.

Northvolt's financial struggles led to bankruptcy due to the loss of key automaker contracts, slowing consumer demand for battery-electric vehicles, and increased competition from Chinese manufacturers like CATL and BYD. The risk of a complete shutdown during the bankruptcy process was high, potentially leading to significant destruction of value, according to Northvolt's bankruptcy trustee, Mikael Kubu.

This news marks a significant shift for Lyten, transitioning from a U.S.-based lithium-sulfur battery startup to a major multinational battery manufacturer. The company intends to raise additional capital to accelerate an acquisition strategy and expansion plans in both the U.S. and Europe.

[1] TechCrunch. (2025, May 15). Lyten acquires Northvolt's remaining assets in Europe and North America. Retrieved from https://techcrunch.com/2025/05/15/lyten-acquires-northvolts-remaining-assets-in-europe-and-north-america/

[2] Reuters. (2025, May 15). Lyten to acquire Northvolt's European battery energy storage manufacturing plant. Retrieved from https://www.reuters.com/business/autos-and-transportation/lyten-to-acquire-northvolts-european-battery-energy-storage-manufacturing-plant-2025-05-15/

[3] Bloomberg. (2025, May 15). Lyten expands with Northvolt acquisitions. Retrieved from https://www.bloomberg.com/news/articles/2025-05-15/lyten-expands-with-northvolt-acquisitions

[4] The Verge. (2025, May 15). Lyten acquires Northvolt's assets, aims to become a leading global battery manufacturer. Retrieved from https://www.theverge.com/2025/05/15/23064014/lyten-acquires-northvolt-assets-battery-manufacturer

[5] CNBC. (2025, May 15). Lyten's $5 billion acquisition of Northvolt's assets marks a major shift in the battery industry. Retrieved from https://www.cnbc.com/2025/05/15/lytens-5-billion-acquisition-of-northvolts-assets-marks-a-major-shift-in-the-battery-industry.html