Swedish battery company Northvolt has been purchased by Lyten in its bankrupt state.
In an exciting development, Swedish battery technology company Lyten is set to launch its lithium-sulfur batteries onto the International Space Station in the coming months. This announcement comes after Lyten's significant acquisition of Northvolt's assets in North America and Europe, a deal that is financially significant, strategically advantageous, and geopolitically impactful.
Lyten, co-founded and chaired by the Swede Lars Herlitz, a former Ericsson engineer, is funding the purchase through money raised from private investors. The deal, valued at approximately $5 billion, involves acquiring 16 GWh of operational battery production capacity, more than 15 GWh under construction, Northvolt’s intellectual property, and key facilities in Sweden and Germany.
The acquisition is a win for Sweden, positioning the country as key to Europe’s energy independence, according to Sweden’s business minister Ebba Busch. For Lyten, the deal accelerates its mission to become a leading supplier of clean, locally sourced lithium-sulfur batteries and energy storage systems in both continents.
Strategically, this deal leverages Northvolt’s established infrastructure, talent, and R&D capabilities to rapidly scale production and meet growing demand related to energy independence, national security, and AI data centers. The combination of Northvolt's lithium-ion capabilities and Lyten's lithium-sulfur battery technology, as stated by Dan Cook, CEO and Co-Founder of Lyten, will fulfill Europe and North America's battery manufacturing ambitions.
Operationally, Lyten plans to immediately restart operations at Northvolt Ett and Labs, rehiring former Northvolt employees and working with previous customers to support rapidly expanding markets for battery and energy storage systems. The agreement also includes plans to potentially acquire additional Northvolt assets in Canada, further strengthening Lyten’s transatlantic footprint.
The acquisition marks a major geopolitical shift in the global battery supply chain. It reduces European and North American reliance on Chinese battery suppliers, fostering transatlantic collaboration to diversify supply and production away from Asian dominance. The deal preserves crucial battery manufacturing assets and skilled workforce in Sweden and Germany, aligning with EU ambitions to secure energy independence, and creates a stronger U.S.-European battery industry nexus.
The agreement is the result of work done since September last year and includes all remaining Northvolt intellectual property and key members of the current Northvolt executive team. The financial terms of the deal were not disclosed, but it was stated that the acquisitions had previously been valued at $5 billion. The deal is dependent on approvals from the Swedish and German governments and the EU.
For the people of Skellefteå, the agreement is important as it ensures the continuation of the battery factory and the possibility of rehiring laid-off workers. The mayor of Skellefteå, Lorents Burman, expressed relief about the agreement. However, the trustee Mikael Kubu mentioned that it may not be possible to say that the deal is a success for the creditors due to the financial terms.
In summary, the acquisition is both a transformative financial investment and a strategic move that enhances Lyten’s production capacity, technological portfolio, and market reach, while contributing significantly to reshaping the global battery supply chain towards greater diversification and energy security.
Lyten's acquisition of Northvolt's assets in North America and Europe has the potential to bolster its mission in sports, as the combination of Northvolt's lithium-ion capabilities and Lyten's lithium-sulfur battery technology promises to fulfill Europe and North America's battery manufacturing ambitions, which extends to various sectors, including sports equipment that heavily rely on advanced battery technology.
The acquisition marks a significant step forward in decentralizing the global battery supply chain, reducing reliance on Chinese suppliers and fostering transatlantic collaboration, ultimately contributing to a more resilient and secure energy infrastructure, a factor crucial for numerous sports events requiring reliable power sources.
