US startup Lyten acquires bankrupt Swedish battery maker Northvolt to revive Europe’s EV ambitions

In March, Northvolt — once a symbol of Europe’s electric car revolution — filed for bankruptcy after losing $10 billion in investment. Now, US startup Lyten is aiming to breathe life back into what was once Europe’s boldest answer to Asia’s battery dominance.

Lyten, a Silicon Valley battery company developing lithium-sulfur cells as a cleaner alternative to traditional lithium-ion, announced Thursday that it has agreed to acquire most of Northvolt’s assets. Backed by Stellantis and FedEx, Lyten isn’t just buying a failed company — it’s picking up the pieces of Europe’s electric future.

As part of the deal, Lyten will acquire Northvolt’s remaining assets in Sweden and Germany. The deal includes the flagship Northvolt Ett and Ett Expansion facilities in Skellefteå, the Northvolt Labs R&D center in Västerås, and the Northvolt Drei project in Heide, Germany. Lyten is also acquiring all of Northvolt’s remaining intellectual property. Several members of Northvolt’s current executive team are expected to join Lyten as part of the transition, the company said in a news release.

Though the purchase price wasn’t disclosed, Lyten CEO Dan Cook told Reuters it came at a “substantial discount” to the original value.

“This is a defining moment for Lyten,” stated Dan Cook, Lyten CEO and Co-Founder. “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.”

In total, Lyten’s acquisition includes assets valued at approximately $5 billion. That includes 16 GWh of existing battery manufacturing capacity, more than 15 GWh of additional capacity under construction, and the infrastructure and plans to scale production beyond 100 GWh. It also includes Europe’s largest and most advanced battery R&D center in Västerås — a key strategic hub in the region’s energy future.

“Our plans are … in large part to pick up where the Northvolt team left off,” Cook said.

Lyten’s Northvolt Acquisition Sparks New Hope for Europe’s Energy Independence

For Europe, the move offers a second chance. Northvolt once had an order book worth more than $50 billion from major automakers like BMW, Volkswagen, and Audi. But repeated delays and questions about product quality ultimately unraveled the company’s reputation. Even with support from top customer Scania, Northvolt couldn’t deliver battery cells at the standard clients expected.

The bankruptcy was one of Sweden’s largest corporate failures and triggered a scramble to avoid a total shutdown. The court-appointed trustee managing Northvolt’s assets said Lyten’s deal defused the risk of “complete shutdown.” Sweden’s deputy prime minister Ebba Busch called the agreement a win for the country’s strategic position in the energy transition.

Lyten plans to restart Northvolt’s Skellefteå plant in northern Sweden, with deliveries of lithium-ion battery cells expected in 2026. In July, it had already acquired Northvolt’s energy storage business in Poland, Europe’s largest. The company is setting its sights on the automotive, defense, and energy storage sectors.

Cook added that Lyten is focused on becoming a leader in locally sourced, locally manufactured batteries for both North America and Europe. Several members of Northvolt’s former leadership team will be joining Lyten, though founder and former CEO Peter Carlsson is not among them.

Lyten recently secured more than $200 million in fresh equity funding to fuel its expansion. Cook said their immediate strategy is to prove their capabilities with one customer first, rebuilding credibility that Northvolt had lost.

“We actually think they’ll come back, perhaps quicker than people believe,” he said, referring to Northvolt’s former clients.

For now, Lyten’s acquisition marks more than just a business deal — it’s a bet that Europe’s dream of battery independence isn’t dead yet.

Founded in 2016 by former Tesla executive Peter Carlsson and former Airbus manager Paolo Cerruti, Northvolt gained attention for its lithium-ion batteries for EVs and energy storage. The company built partnerships with Volkswagen, BMW, and ABB, aiming to deliver sustainable, high-quality batteries for Europe’s green energy future. But delays and escalating costs led to its financial unraveling.