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.
Founded in 2015, Lyten started out in a shipping container in California, but has gained backing from Chrysler-parent Stellantis and US delivery giant FedEx. It 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 more than $1bn (R17.74bn). Over the past year Lyten has acquired two of Northvolt's former businesses: a US R&D hub and Northvolt's energy storage systems factory, Europe's largest.
Sweden's Northvolt collapsed in March after being in a US 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 $50bn (R886.82bn) order book with automakers including BMW, Volkswagen, Volvo Cars and Audi. That was wiped out after the bankruptcy.
It raised more than $10bn (R177.36bn) in equity, debt and public funding since its 2016 launch, and had more than 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%.
Many in the EV industry hope electric autos in the future can run on lithium-sulphur, which can be up to two-thirds cheaper than 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.
Lyten has raised more than $625m (R11.09bn) from investors including Stellantis, FedEx and the US 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.
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