Lyten Raises $200 Million to Acquire Northvolt's Assets

According to foreign media reports, California-based startup Lyten, which develops lithium-sulfur batteries, has raised $200 million from existing investors to acquire the assets of bankrupt battery manufacturer Northvolt AB. The company stated that this new funding will enable Lyten to acquire Northvolt's intellectual property related to energy storage systems. Additionally, Lyten had previously announced plans to acquire Northvolt's assembly plant in Poland and restart production. This funding may also be used for further acquisitions. Lyten's investors include venture capital firms like Prime Movers Lab, the Luxembourg Future Fund, Stellantis, and FedEx Corp. Keith Norman, Chief Marketing and Sustainability Officer at Lyten, mentioned that the company is accelerating its acquisitions to establish a presence in the European stationary energy storage and military drone markets. Lyten is also adjusting its strategy, moving away from solely producing battery cells for the U.S. market, as the slowdown in U.S. electric vehicle sales has forced companies to rethink their business models. Norman stated, "We are expanding downstream in the battery supply chain to capture more market share in the automotive industry, and we are finding that due to market challenges, some manufacturing assets may be sold at discounts below their value." He did not disclose how much Lyten paid for Northvolt's intellectual property or the Polish plant, which initially cost about $200 million to build. Lyten's strategic shift has triggered cost-cutting and restructuring measures. According to The Information, last week, senior employees who had led the commercialization of Lyten's proprietary lithium-sulfur batteries, including former Tesla executive Celina Mikolajczak and around 45 other employees, have left the company. Lyten confirmed Mikolajczak's departure but declined to comment on the changes in employee numbers. She expressed pride in having successfully commercialized a battery chemistry technology that many considered "hopeless" during her tenure. Norman explained the personnel changes by stating, "The company is entering a rapid growth phase, focusing on very specific markets and regions, and thus needs to ensure that its resources align with these opportunities." Lyten plans to restart production at its Gdansk, Poland plant, which was shut down in the first quarter of this year. Prior to the shutdown, this facility mainly manufactured energy storage products, including enclosures, wiring, inverters, control and safety systems, and other components. The resumption of production will utilize traditional nickel-based cells produced by Northvolt. The company aims to resume product deliveries from this plant to customers in the fourth quarter of this year. However, in the long term, Lyten plans to transform this facility into its proprietary lithium-sulfur battery production base. The company claims that lithium-sulfur battery production is cheaper and does not rely on key materials dominated by China. Lyten also believes that its lithium-sulfur cells can compete with the lithium iron phosphate batteries that dominate the energy storage market in terms of price and energy density. Last year, Lyten also acquired a lithium metal manufacturing plant near San Francisco, which was originally owned by Cuberg, a startup that Northvolt acquired in 2021.