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US startup Lyten buys troubled European battery manufacturer Northvolt

Lyten, a U.S.-based battery startup, has agreed to purchase the majority of the bankrupt Swedish company Northvolt. The announcement was made on Thursday. This could be a chance for Europe's once leading battery manufacturer to regain its former prominence.

Lyten, an Silicon Valley startup that develops lithium-sulphur batteries as a cleaner option to lithium-ion cells, is backed both by Jeep owner Stellantis, and U.S. Delivery Services provider FedEx.

The deal brings back hope for European battery independence. Northvolt, the continent's possible rival to major Chinese electric car battery makers, filed for bankruptcy in march, becoming one of Sweden's biggest corporate failures. A frantic search for a buyer ensued.

Dan Cook, CEO of Lyten, said that the company's plans were to "pick up where Northvolt left off" and declined to reveal the price. He only stated that the asset was purchased at a "substantial discounted value".

Northvolt received criticism for over-promising and failing to deliver quality battery cells that were deemed acceptable by clients. This was despite the fact that its largest customer, Scania, helped Northvolt.

Lyten aims to restart its flagship Skelleftea factory in northern Sweden in 2026 and resume lithium-ion cell deliveries. In July, it acquired Northvolt’s energy storage business, Europe’s largest, in Poland. It is now targeting automotive, defense and energy storage markets.

Cook confirmed that several former Northvolt management members would join Lyten. However, the founder and former CEO Peter Carlsson will not be joining.

He said, "We're focused on becoming the leader in locally sourced and locally manufactured batteries both for the North American market and the European market right now."

Lyten announced in July that they had raised over $200 million additional equity to support their acquisitions and expansion plan.

Cook said Lyten's value would be proven to Northvolt’s former customers if it focused first on delivering high yields to one customer. Northvolt had an order book that once totaled more than $50 billion, including automakers like BMW, Volkswagen and Audi.

Cook, Leyton co-founder, said, "We think they'll return, perhaps sooner than people believe."

Northvolt's intellectual property and projects in Sweden, Germany, and Canada are included in the deal. The acquisition of its Canadian unit was also in progress.

Northvolt, which had been expanding across the Atlantic before its collapse, refocused its efforts on Sweden, as its financial crisis intensified, and sold assets at nominal prices.

(source: Reuters)