Lyten Acquires Manufacturing Assets from Northvolt Amid Cash Crunch
Lyten, a Silicon Valley battery startup, made headlines today with the announcement of its acquisition of manufacturing assets from Northvolt, a Swedish battery manufacturer currently facing financial difficulties.
As part of the agreement, Northvolt is selling off manufacturing equipment obtained from its 2021 acquisition of Cuberg, another battery startup. In addition, Lyten will take over the lease of Cuberg’s former manufacturing facility in San Leandro, California. The company plans to invest $20 million in the upcoming year to expand its operations in San Leandro and San Jose.
Financial details of the deal have not been disclosed by either Lyten or Northvolt at this time.
Unlike traditional battery manufacturers, Lyten utilizes innovative materials for its cathode and anode. The company opts for sulfur mixed with graphene in the cathode, eliminating the need for costly materials like nickel, cobalt, and manganese. On the anode side, Lyten avoids graphite, a material subject to export restrictions from China. This unique approach results in cells that offer higher energy density than conventional options while being more cost-effective to produce.
Northvolt has been grappling with challenges in scaling up its lithium-ion battery production. The company recently faced setbacks, including a missed delivery to BMW, leading to the cancellation of a significant contract worth âŹ2 billion.
To address its financial constraints, Northvolt decided to halt research and development activities at the Cuberg site, resulting in layoffs of around 200 employees. Subsequently, the company announced further layoffs affecting 1,600 employees and paused planned factory expansions.
Despite Northvolt’s struggles, Lyten is on a growth trajectory. The San Jose-based startup is set to commence construction on a Nevada facility next year, with a capacity of 10 gigawatt-hours. This $1 billion plant will focus on producing lithium-sulfur batteries for various applications, such as micromobility vehicles, defense, and space technologies, expected to be operational by 2027.
With the acquisition of Cuberg’s assets, Lyten gains the capability to manufacture up to 200 megawatt-hours of lithium-sulfur batteries in the Bay Area. This move is seen as a strategic step to generate revenue while preparing for the larger facility in Nevada.
According to PitchBook, Lyten has raised a total of $476 million and holds a valuation of $1.17 billion, including a $200 million funding round completed last year.
