catastrophic power system collapse in Europe's grid network

In a significant move for the battery manufacturing industry, California-based startup Lyten has acquired the remaining assets of insolvent Swedish battery manufacturer Northvolt. The acquisition, which is expected to be finalized by the end of 2025, is subject to approvals in Sweden, Germany, and at the EU level.

Northvolt, founded in 2016, had ambitious plans for Gigafactories in Sweden, Germany, and Canada. However, production issues, technical challenges, contract cancellations, and liquidity crises led to Northvolt's insolvency last year. Despite billion-dollar orders from BMW, VW, Volvo, and Audi, the company faced financial difficulties.

The total assets of Northvolt, estimated to be approximately five billion US dollars, include the Gigafactory "Northvolt Ett" in Skellefteå, the research center "Northvolt Labs" in Västerås, the planned plant "Northvolt Drei" near Heide, and Northvolt's intellectual property.

Lyten specializes in the development of lithium-sulfur batteries, which are lighter, cheaper, and more sustainable than conventional lithium-ion technology. The acquisition marks a strategic move for Lyten, expanding its presence in the battery manufacturing industry.

The US company initiated the negotiations to take over the remaining shares of Northvolt around early August 2025. In summer 2025, Lyten secured an additional $200 million in fresh capital, specifically for financing the Northvolt deals.

The exact price of the deal and the terms of the acquisition are yet to be disclosed. However, the acquisition at least ensures the rescue of many Northvolt employees and could secure a European location for lithium-sulfur technology.

The field of battery production, similar to chip production, is being left to competing countries due to Germany and the EU underestimating the consequences of leaving a future technology to others. The EU's failure to invest in battery production has led to a clear failure of EU industrial policy, as a U.S. startup secures strategically relevant battery facilities in Europe.

The acquisition comes at a time when the EU faces a significant structural disadvantage compared to major battery manufacturers, making it seem insurmountable. Europe is missing its chance to be a front-runner in the battery age and must now watch as an external actor begins to rebuild the ruins of its own ambitions.

The deal does not provide details about the future of Northvolt's employees or the continuation of its ongoing projects. As the acquisition progresses, more information is expected to be released, shedding light on the future of Europe's battery manufacturing industry.

catastrophic power system collapse in Europe's grid network