Bankrupt Swedish battery maker Northvolt had increased production of high-quality battery cells at its Skellefteå facility before halting operations, a development that helped secure a sale agreement.
The company, once viewed as Europe’s key challenger to Chinese battery dominance, filed for bankruptcy in March and stopped production in June after failing to find a buyer in time.
U.S. battery startup Lyten announced plans to purchase most of Northvolt’s assets, aiming to revive operations and position itself in the European market.
The transaction is expected to close in Sweden by late October, with additional time required for assets abroad. Lyten, backed by Stellantis and FedEx, specializes in developing lithium-sulphur batteries, which are seen as a cleaner alternative to lithium-ion technology.
Before the shutdown, Northvolt’s yields had reached around 90%, and output at the Skellefteå site was estimated at up to 30,000 battery cells per week. Despite these improvements, the company was burdened by debts of around $8 billion, leaving many unsecured creditors, including Goldman Sachs and Volkswagen, facing substantial losses. Northvolt’s former customers included brands such as Scania, Porsche, and Audi.
Source: Reuters