Advanced materials company Lyten has announced an agreement to acquire the majority of key assets from bankrupt electric vehicle (EV) battery company Northvolt. The acquisition includes the Northvolt Ett gigafactory and its expansion project in Northern Sweden, the Northvolt Labs battery innovation campus, and the Germany-based gigafactory project Northvolt Drei. Additionally, Lyten will acquire all of Northvolt’s remaining intellectual property. The company aims to restart operations and expand battery manufacturing capacity, exploring opportunities beyond EVs, such as energy solutions for data centres.
The acquisition encompasses 16 GWh of existing battery manufacturing capacity, more than 15 GWh under construction, and plans to scale beyond 100 GWh. Although the transaction terms were not disclosed, Lyten noted that the assets had been previously valued at approximately $5 billion.
Northvolt, based in Stockholm, filed for bankruptcy in March, representing a significant setback for an ambitious project to establish a European EV battery giant. Founded in 2016, Northvolt aimed to develop the “world’s greenest battery” with a minimal carbon footprint, sustainable raw material sourcing, and recycling. Despite raising over $14 billion, the company faced challenges such as decreased EV demand in Europe, rising capital costs, geopolitical instability, and supply chain disruptions.
Lyten previously announced agreements to acquire Northvolt’s Cuberg battery manufacturing facility in California by November 2024, and Europe’s largest Battery Energy Storage System (BESS) manufacturing facility, Northvolt Dwa, in Gdansk, Poland, by July 2024. Last month, Lyten also acquired Northvolt Dwa’s BESS product portfolio in Stockholm.
Lyten plans to immediately restart operations at Northvolt Ett and Labs upon closing the transaction. The company is collaborating with the German government to establish a battery manufacturing facility with an initial 15 GWh capacity. Lyten is engaging constructively with Northvolt’s former anchor customers and plans to rehire a significant portion of the previously laid-off workforce at the acquired facilities. Several members of Northvolt’s executive team are expected to join Lyten.
Furthermore, Lyten is pursuing the acquisition of Northvolt Six in Quebec, Canada, which involves constructing a 15 GWh battery manufacturing facility. Discussions are ongoing with Northvolt North America, the Canadian Government, the Government of Québec, and other stakeholders.
The acquisition is fully funded through equity investment from private investors, with expected closure in the fourth quarter of this year, pending government approvals.
Dan Cook, CEO and Co-Founder of Lyten, remarked: “This is a defining moment for Lyten. 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 centre needs.”
