Headlines
Factbox-US startup seeks to recharge Europe's fallen battery icon Northvolt
Published by Global Banking & Finance Review®
Posted on August 7, 2025
3 min readLast updated: January 22, 2026
Global Banking & Finance Review®
Company
Published by Global Banking & Finance Review®
Posted on August 7, 2025
3 min readLast updated: January 22, 2026
Lyten acquires Northvolt's assets to revitalize Europe's battery industry, focusing on lithium-sulphur technology to reduce reliance on China.
By Marie Mannes and Alessandro Parodi
STOCKHOLM (Reuters) -Silicon Valley startup Lyten said on Thursday it had agreed to buy bankrupt Northvolt's remaining assets in Sweden and Germany, potentially reviving Europe's hopes of building a domestic electric vehicle battery industry to reduce reliance on China.
Here are some details about Lyten, Northvolt's collapse and lithium-sulphur batteries.
WHO IS LYTEN?
Founded in 2015, Lyten started out in a shipping container in California, but has gained backing from Chrysler-parent Stellantis and U.S. delivery giant FedEx. It now develops lithium-sulphur battery cells, which it hopes will compete with conventional lithium-ion technology.
It announced plans in 2024 to build the world's first gigafactory for lithium-sulphur batteries in Reno, Nevada, with an investment of over $1 billion.
Over the past year, Lyten has acquired two of Northvolt's former businesses: a U.S. R&D hub and Northvolt's energy storage systems factory, Europe's largest.
WHAT HAPPENED TO NORTHVOLT?
Sweden's Northvolt collapsed in March after being in a U.S. Chapter 11 bankruptcy process since 2024. The company struggled to scale output at its flagship plant in northern Sweden, despite support from a major customer, truckmaker Scania.
Once considered a pioneer in European battery cell production, Northvolt had a $50-billion order book with automakers including BMW, Volkswagen, Volvo Cars and Audi. That was wiped out following the bankruptcy.
It raised more than $10 billion in equity, debt and public funding since its 2016 launch, and had over 6,000 workers at one point before most were let go. Its largest shareholders included Volkswagen with a 21% stake, and Goldman Sachs, with 19%.
WHY IS LITHIUM-SULPHUR SIGNIFICANT?
Many in the EV industry hope that electric autos in the future can run on lithium-sulphur, which can be up to two-thirds cheaper than today's lithium-ion battery cells.
Lithium-sulphur batteries do not contain nickel, cobalt, or manganese - materials whose supply is dominated by China - making them cheaper and potentially more sustainable.
WHO IS BACKING LYTEN?
Lyten has raised over $625 million from investors including Stellantis, FedEx, and the U.S. government.
Other investors and partners include Honeywell, a supplier to planemaker Boeing and Airbus, venture capital firm Prime Movers Lab, and Canadian miner Wallbridge, according to Lyten's website.
(Reporting by Marie Mannes and Alessandro Parodi; Editing by Emelia Sithole-Matarise)
Lyten has agreed to buy Northvolt's remaining assets in Sweden and Germany, aiming to revive Europe's battery production capabilities.
Northvolt collapsed after struggling to scale output at its flagship plant and filed for Chapter 11 bankruptcy in the U.S. in 2024.
Lithium-sulphur batteries are considered significant because they can be cheaper and more sustainable than traditional lithium-ion batteries, as they do not rely on materials like nickel and cobalt.
Lyten has raised over $625 million from investors including Stellantis, FedEx, and the U.S. government, along with other partners like Honeywell and Wallbridge.
Lyten plans to build the world's first gigafactory for lithium-sulphur batteries in Reno, Nevada, with an investment exceeding $1 billion.
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