- Northvolt sells the California plant to Lyten to focus on European projects amid financial difficulties, including potential Chapter 11 bankruptcy.
- Lyten will invest $1 billion in a Nevada giga-factory, advancing lithium-sulfur batteries and U.S. energy independence from critical metal imports.
- Northvolt faces significant financial strain, with a subsidiary declaring bankruptcy and ongoing efforts to secure short-term financing solutions.
Swedish battery maker Northvolt sold its California plant to U.S. start-up Lyten, focusing on lithium-sulfur battery technology. The sale allows Northvolt to refocus on European projects as it struggles with financial challenges, including the potential for Chapter 11 bankruptcy.
Northvolt, known for electric vehicles and energy storage batteries, moved to streamline operations and redirect resources to Europe. The company will relocate its lithium metal research from California to Sweden. However, Northvolt continues to work on its Quebec mega-plant, which remains a priority.
Lyten, founded in 2015, is rapidly expanding in the U.S. energy market. Its lithium-sulfur batteries offer an alternative by avoiding cobalt and nickel, metals frequently sourced from China. As part of its growth, Lyten plans to invest over $1 billion in a gigafactory in Reno, Nevada, with production starting in 2027. This investment aims to boost U.S. energy independence and secure domestic access to critical battery materials.
Northvolt’s California sale aligns with its strategy of focusing on Europe. The company pushes ahead with two key projects: a battery plant in Germany, backed by a €902 million subsidy, and another in Sweden, developed in partnership with Volvo Cars. These plants will help meet Europe’s rising demand for electric vehicle batteries and reduce reliance on imports.
Despite its expansion efforts, Northvolt struggles with serious financial problems. Since its founding in 2016, the company has raised about €10 billion but faces production delays, lost a significant client, and encountered difficulties securing new funding. These setbacks have worsened its financial position.
In October 2024, Northvolt’s subsidiary, Northvolt Ett Expansion AB, declared bankruptcy after cancelling an expansion project at its Skellefteå plant in Sweden. The subsidiary accumulated debts ranging from 2 to 3 billion Swedish kronor ($194 to $290 million). This bankruptcy highlights the growing financial strain on Northvolt.
Northvolt is now actively negotiating with creditors, shareholders, and clients to secure short-term financing. Although Chapter 11 bankruptcy remains an option, the company has not made any final decision. Northvolt continues exploring all options to address its financial challenges and maintain its European projects.
Northvolt’s focus on Europe reflects its response to market demands. The company hopes these investments will help it solidify its position as a leader in energy storage and electric vehicle batteries. However, the ongoing financial challenges could derail its future growth.
As Northvolt undergoes restructuring, Lyten advances its position in the U.S. market with its lithium-sulfur battery technology. While both companies adapt to market changes, Northvolt faces an uncertain future as it works to stabilise its finances.