Second Lyten battery manufacturing facility, positioned to reverse operation at Northvolt plant

In a strategic move to meet the surging demand for stationary storage, US-based startup Lyten has announced its foray into European production. This decision, initially planned for 2026, was accelerated due to the increased demand in Q1 2021.

Lyten's focus is on the production of lithium-sulfur batteries, a technology that promises improved energy density and longer lifespan compared to traditional lithium-ion batteries. The company is betting on potential acquisitions and the conversion of Northvolt factories to meet market demand, without waiting for its greenfield factory in Reno, Nevada, scheduled to start battery production in 2027.

The largest BESS (Battery Energy Storage System) manufacturing facility on the continent, Dwa, is one of the facilities Lyten is planning to purchase. Dwa, which was part of Northvolt's battery systems manufacturing business, came online in 2023 with an initial production capacity of 5 GWh, with the potential to scale up to 12 GWh.

Lyten is also purchasing a second abandoned Northvolt manufacturing facility, located in Poland. The US startup will close the transaction for both facilities in 2025's third quarter.

The increased demand for stationary storage was partly due to the uncertainty caused by President Trump's global tariffs. This surge in demand primarily came from developers, who are looking for reliable and efficient energy storage solutions.

Lyten's strategy involves brownfield expansions to scale manufacturing while avoiding financial woes. By purchasing and converting existing facilities, Lyten aims to control its own supply chain and sell into the electric vehicle market.

The company has already been shipping commercially to drone and satellite battery customers. With its expansion into stationary storage and European production, Lyten is poised to make a significant impact in the energy storage market.

Meanwhile, Scania, a subsidiary of Volkswagen, purchased the other part of the business earlier this year. This move by Lyten marks its first foray into European production, signalling a new era of growth and innovation for the US startup.