In a groundbreaking move for the global battery industry, Silicon Valley-based startup Lyten has agreed to acquire most of the remaining assets of bankrupt Swedish battery manufacturer Northvolt. Announced on August 7, 2025, the deal includes key facilities in Sweden and Germany, signaling a potential revival for Europe's ambitions to build a robust domestic electric vehicle (EV) battery sector.
Northvolt, once hailed as Europe’s answer to Asian battery giants, filed for bankruptcy in March 2025 after facing severe financial challenges. The company’s collapse raised concerns about Europe’s reliance on foreign battery supply chains, particularly from China. Lyten’s acquisition offers a glimmer of hope, aiming to reduce this dependency by leveraging Northvolt’s infrastructure and expertise.
Lyten, founded in 2015, specializes in innovative lithium-sulfur batteries, which promise to outperform traditional lithium-ion technology by avoiding materials like nickel and cobalt, whose supply chains are dominated by China. With backing from major players like Stellantis and FedEx, Lyten is also planning a gigafactory in Reno, Nevada, marking its ambitious expansion in the battery market.
The acquisition encompasses critical assets such as Northvolt Ett, a major production facility in Sweden, positioning Lyten to scale up operations in Europe. Industry experts see this as a strategic step to strengthen European energy independence while integrating cutting-edge battery technology into the region’s EV ecosystem.
Additionally, Lyten has expressed interest in taking over Northvolt’s planned battery-cell megafactory site in Quebec, Canada, further expanding its global footprint. This move could solidify Lyten’s role as a key player in the international battery landscape, challenging established competitors.
While the financial details of the deal remain undisclosed, the acquisition is already generating buzz about the future of sustainable energy solutions in Europe. As Lyten integrates Northvolt’s assets, the industry watches closely to see if this partnership can deliver on the promise of a competitive European battery industry.
Maria Lourdes
