In a significant move, Lyten, a Silicon Valley battery startup, has announced that it is acquiring manufacturing assets from Northvolt, a Swedish battery manufacturer facing financial difficulties. As part of the deal, Northvolt will sell its inherited equipment from the 2021 acquisition of Cuberg, another battery startup. Additionally, Lyten will assume the lease of Cuberg’s old manufacturing facility in San Leandro, California.
Financial Terms Remain Confidential
Neither Lyten nor Northvault has disclosed the financial terms of the deal, leaving questions about the implications for both companies. The acquisition is a strategic move by Lyten to expand its operations and capacity, while Northvolt aims to conserve cash and navigate its financial challenges.
Lyten’s Innovative Approach to Battery Manufacturing
Unlike other battery manufacturers, Lyten does not rely on nickel, cobalt, manganese, or iron for its cathode materials. Instead, the company uses cheap and abundant sulfur mixed into a graphene matrix. On the anode side, Lyten avoids graphite, a material facing export restrictions from China. The combination results in cells with greater energy density than nickel-manganese-cobalt flavors but are cheaper to produce than low-cost lithium-iron-phosphate.
Northvolt’s Financial Struggles
Northvolt has faced significant challenges in scaling up production of lithium-ion batteries, missing a large order from BMW and resulting in the nullification of a €2 billion contract. To conserve cash, Northvolt announced plans to shut down research and development at the Cuberg site, laying off nearly 200 employees. In September, the company revealed it was cutting an additional 1,600 jobs (about 20% of its workforce) and halting two planned factory expansions.
Lyten’s Expansion Plans
While Northvolt struggles to stay afloat, Lyten appears to be on the rise. The San Jose-based startup plans to break ground next year on a $1 billion facility in Nevada with a capacity of 10 gigawatt-hours. When complete, the factory will produce lithium-sulfur batteries for micromobility vehicles like scooters and e-bikes, as well as defense and space applications such as drones and satellites.
Lyten’s Acquisitions and Fundraising
The acquisition of Northvolt’s Cuberg assets gives Lyten the equipment and space to produce up to 200 megawatt-hours of lithium-sulfur batteries in the Bay Area. This will provide revenue while the company prepares its larger factory in Nevada. Lyten has raised $476 million to date at a valuation of $1.17 billion, according to PitchBook.
Timeline for Expansion
Lyten’s plans include:
- 2026: Break ground on the Nevada facility
- 2027: Complete the Nevada facility and begin production
This acquisition represents a significant step in Lyten’s expansion plans, solidifying its position as a major player in the battery manufacturing industry.
About Lyten
Lyten is a Silicon Valley-based startup focused on developing innovative battery technologies. The company has raised $476 million to date at a valuation of $1.17 billion, according to PitchBook.
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