Company Northvolt, bankrupt in the battery sector, is taken over by Lyten.
American company Lyten, specializing in lithium-sulfur batteries, has announced its pursuit of acquiring key assets from bankrupt EV battery manufacturer Northvolt. The acquisitions, expected to close in the fourth quarter of this year, are subject to government approvals.
The deal includes the Northvolt Ett gigafactory in Northern Sweden, Northvolt Labs battery innovation campus, Northvolt Drei gigafactory project in Germany, and all of Northvolt's remaining intellectual property. The assets, previously valued at approximately $5 billion, will provide Lyten with 16 GWh of existing battery manufacturing capacity, more than 15 GWh of capacity under construction, and plans to scale to more than 100 GWh.
Northvolt, established in 2016 with a goal to develop the "world's greenest battery," faced a series of challenges, including a significant downshift in EV demand in Europe, rising capital costs, geopolitical instability, and supply chain disruptions. The company announced bankruptcy in March 2023.
The acquisition of Northvolt's assets comes amidst financial troubles for the Quebec government, which, along with its pension fund manager Caisse de dépôt et placement du Québec, is under investigation by the Quebec auditor general for subsidies amounting to hundreds of millions of dollars given to Northvolt before the bankruptcy. The Quebec government, along with local stakeholders, is actively progressing discussions with Northvolt North America regarding the acquisition of Northvolt Six in Quebec, which is building a 15 GWh Phase 1 battery manufacturing facility.
Despite these challenges, Lyten views the acquisition as an opportunity to combine Northvolt’s manufacturing assets with its own technology to meet growing battery demand in Europe and North America. Dan Cook, Lyten CEO and Co-Founder, stated that the acquisition will accelerate Lyten's mission by years.
In addition to the Northvolt assets, Lyten has previously announced agreements to acquire Northvolt's Cuberg battery manufacturing facility in California (November 2024), Northvolt Dwa (July 2024), and Northvolt Dwa Battery Energy Storage System (BESS) product portfolio in Stockholm (last month). The new acquisition is being fully funded through equity investment into the company from private investors.
Lyten plans to rehire a significant portion of the previously laid-off workforce at the acquired facilities and to restart operations at Northvolt Ett and Labs upon close of the transaction. The company is also working with the German government to establish a battery manufacturing facility with 15 GWh of initial capacity.
Collaboration with Northvolt's prior anchor customers is progressing constructively, and Lyten is actively progressing discussions with Northvolt North America, the Canadian and Quebec governments, and local stakeholders regarding the acquisition of Northvolt Six.
[1] Quebec government under investigation for subsidies to bankrupt Northvolt
[2] Lyten to acquire Northvolt assets
[3] Lyten to restart operations at Northvolt Ett and Labs
[4] Northvolt files for bankruptcy
[5] Caisse de dépôt et placement du Québec under investigation
- The acquisition of Northvolt's assets, previously valued at approximately $5 billion, marks a significant move in the business and technology sector, as it involves a troubled EV battery manufacturer being purchased by American company Lyten.
- With the acquisitions including Northvolt Ett gigafactory in Northern Sweden, Northvolt Labs battery innovation campus, Northvolt Drei gigafactory project in Germany, and all of Northvolt's remaining intellectual property, Lyten aims to expand its battery manufacturing capacity and technology portfolio in both Europe and North America.
