Silicon Valley startup Lyten has stepped into the European market by acquiring the assets of bankrupt Swedish EV battery maker Northvolt. The move, announced on August 7, aims to revive hopes of building a European battery champion and reducing dependence on China.
Lyten specializes in lithium-sulfur battery technology and currently produces cells at a pilot plant in California. With this acquisition, the company also takes over Northvolt’s lithium-ion production and research facilities. Industry experts believe this deal could accelerate Lyten’s plans to scale up production in Europe.
However, convincing investors and carmakers will not be easy. Northvolt collapsed earlier this year with $8 billion in debt after missing production targets and losing investor confidence. Many automakers are now cautious and want to see proven results before committing to new supply agreements.
Lyten’s lithium-sulfur cells promise lighter and cheaper alternatives to conventional battery types, while also reducing reliance on critical minerals sourced from China. Yet experts say the technology is still in its early stages and may not be commercially viable for cars before 2030.
Carmakers like BMW and Stellantis have shown interest but remain cautious. Stellantis already holds a small stake in Lyten and has been exploring the company’s technology since 2023. Still, large-scale contracts will depend on Lyten’s ability to demonstrate consistent battery performance at scale.
The company’s CEO, Dan Cook, said the acquisition would allow Lyten to speed up its production timeline and potentially reach large-scale output by 2028. He also confirmed that the deal was fully funded by private investors at a substantial discount.
Despite challenges, Lyten’s entry into Europe could provide a much-needed boost to local battery manufacturing. Industry analysts believe government support and long-term investment will be crucial for success, as competition from China remains strong.
If successful, Lyten could play a key role in reshaping Europe’s electric vehicle battery market.
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