US firm Lyten buys bankrupt Northvolt, eyes 2026 restart
American startup Lyten bought the remaining assets of bankrupt battery company Northvolt, planning to resume deliveries next year.
Published on August 8, 2025
Northvolt Skellefteå plant - © Northvolt
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Lyten, a US-based battery firm, has agreed to acquire the bankrupt Swedish battery company Northvolt. The deal includes Northvolt's flagship manufacturing plant in Skellefteå, Sweden, as well as its energy storage business in Poland. Lyten plans to quickly restart operations and resume deliveries of lithium-ion battery cells in 2026, reviving hopes for European battery independence after Northvolt's high-profile collapse.
Lyten, backed by automaker group Stellantis and FedEx, specializes in lithium-sulfur batteries and aims to become a leading supplier of locally sourced batteries in both North America and Europe. Lyten currently manufactures lithium-sulfur batteries in Silicon Valley, catering to the drone and defense markets, and is planning to launch its batteries to the International Space Station soon. The acquisition of Northvolt's assets aligns with Lyten's mission to expand its footprint and enhance Europe's energy independence.
“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,” stated Dan Cook, Lyten CEO and Co-Founder.
Taking over Northvolt
The deal encompasses Northvolt's key projects in Sweden and Germany, including Northvolt Ett and Ett Expansion in Skellefteå, Northvolt Labs in Västerås, and Northvolt Drei in Heide. Lyten is also acquiring all of Northvolt’s intellectual property. Prior to this agreement, Lyten had already acquired Northvolt's Cuberg battery manufacturing facility in California (November 2024), Northvolt Dwa—Europe's largest Battery Energy Storage System (BESS) manufacturing facility in Dwa, Poland (expected to close in August 2025), and Northvolt's BESS product and IP portfolio (late July 2025). Lyten secured over $200 million in additional equity investment to support these acquisitions and its expansion plans.
Ebba Busch, Deputy Prime Minister of Sweden, stated, “Lyten’s acquisition of the Northvolt assets is a win for Sweden, for the former employees of Northvolt, and for positioning Sweden as key to Europe’s energy independence. We have been working closely with the Trustee and Lyten to fully support this deal, and we are excited to work with Lyten moving forward to make good on the immense potential of these assets.”
Once hailed as a beacon of European battery manufacturing, Northvolt filed for bankruptcy in March 2025, one of Sweden's largest corporate failures. The company faced criticism for failing to deliver high-quality battery cells despite substantial financial backing and support from major customers like Scania. In September 2024, Northvolt restructured its operations, laying off 20% of its workforce. Production challenges, quality issues, and communication problems with Chinese machinery suppliers plagued the Northvolt Ett plant in Skellefteå. BMW canceled a €2 billion contract in June 2024 due to slow production buildup. Despite securing €15 billion, Northvolt struggled to ramp up production to meet its targets.
Restarting operations
Lyten plans to promptly restart operations at the Skellefteå (Ett) and Västerås (Labs) facilities upon closing the transaction, with collaborative efforts underway with Northvolt's former anchor customers. Lyten also intends to continue the program at Northvolt Drei to establish a 15 GWh battery manufacturing facility near Heide in Schleswig-Holstein, working in tandem with Northvolt and the German government. Lyten is committed to acquiring Northvolt Six in Quebec, Canada, which is constructing a 15 GWh Phase 1 battery manufacturing facility and is in active discussions with relevant stakeholders. Lyten aims to resume battery cell deliveries in 2026, targeting the automotive, defense, and energy storage markets. Several of Northvolt's former management team members will be joining Lyten, though founder and ex-CEO Peter Carlsson will not.
