Lyten Buys Northvolt’s Battery Manufacturing Assets

With production delays, missed delivery deadlines, and financial pressures, 2024 isn’t exactly going as planned for Swedish battery manufacturer Northvolt AB. Swooping in to save the day (well, maybe) is Lyten, a battery startup in Silicon Valley, CA, that announced its plans to buy Northvolt’s U.S.-based assets.

Lyten, Northvolt Contract

The deal, announced on November 13, 2024, includes the sale of the manufacturing equipment that was passed down to Northvolt when it acquired Cuberg in 2021. 

As well as the machinery, the lease of a San Leandro, CA, manufacturing facility (Cuberg’s old digs) will also shift to Lyten. The company plans to invest $20 million into the expansion of this location, and its other U.S. operations in 2025.

Northvolt’s Woes

After missing the delivery deadline of a $2 million order from BMW, Northvolt was swiftly hit with a contract nullification from the giant automaker. This was obviously a massive setback for Northvolt, which had to quickly find ways to save some money.

As a result, the battery manufacturer had to stop its research and development projects, and put a pin in the plans to expand two of its factories. The company also laid off 20% of its employees—almost 200 members of staff in August, and another 1,600 a month later.

Lyten’s Battery-Making Approach 

To make its batteries, Lyten uses a sulfur and graphene matrix that is affordable, plentiful, and easy to get. This makes a change from the rare earth elements, like cobalt and manganese, relied on by most battery makers. 

We recently wrote about the incoming administration’s potential tariff hikes on Chinese imports, which would also likely affect graphite—a common battery-making material. Lyten, however, doesn’t use it, stating that its unique concoction can potentially offer higher energy density at much lower production costs.

Northvolt’s Future

Despite the axes and the Lyten deal, no one really knows what the future holds for Northvolt. The company is said to need $100 million every month just in operating costs, even after all the layoffs. 

According to a Bloomberg report, Northvolt would need a not-so-humble $900 million to get its head above water—although the exact financial terms of the Lyten deal haven’t been confirmed by either company yet, we can’t imagine it covering those costs.

Image Credit: Shutterstock/Peter Lundgren