U.S. battery developer Lyten has signed a letter of intent to acquire insolvent Norwegian battery cell manufacturer Morrow Batteries, potentially preserving battery production and technology activities at Morrow’s site in Arendal. The proposed transaction is being pursued with Innovation Norway and Morrow’s insolvency administrators.
The move follows Lyten’s recent acquisition of remaining assets from Swedish battery manufacturer Northvolt and forms part of the company’s plans to establish a European battery production base.
Lyten Selected as Preferred Bidder
Morrow Batteries entered insolvency proceedings earlier this year covering Morrow Batteries ASA, Morrow Technologies AS and Morrow Industrialisation Center AS.
Innovation Norway and the insolvency administrators conducted a bidding process involving multiple interested parties before selecting Lyten as the preferred bidder. The parties have agreed not to disclose the financial and other details of the letter of intent.
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Leon Bakkebø, Executive Vice President at Innovation Norway, said the organization’s priority as a secured creditor was to maximize value recovery while reducing execution risks.
“As a secured creditor, our priority throughout the process has been to maximise value recovery and reduce execution risk,” said Leon Bakkebø, Executive Vice President at Innovation Norway.
Bakkebø said Lyten’s proposal offered the strongest combination of financial recovery, transaction certainty and industrial credibility. He added that a completed transaction could provide a basis for future battery-related activities in Arendal.
Potential to Preserve Jobs in Arendal
Morrow’s insolvency has put employees and local suppliers under pressure, but the proposed transaction could provide short-term continuity for the company’s workforce.
Christian Bohne, the lawyer administering Morrow’s insolvency estate, said the process is intended to preserve value and identify a path for the company’s continued operations.
“Under demanding circumstances, they have made an important and highly valued contribution to the work to continue battery production in the Arendal region,” said Christian Bohne.
The agreement could secure around 70 jobs through the autumn in the short term. If the acquisition is completed and operations expand, several hundred positions at Morrow, along with orders for local materials and service providers, could potentially be maintained.
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Bohne cautioned that the transaction remains subject to circumstances and conditions outside the administrators’ control.
“Although we do not yet know whether those circumstances can be met, I am optimistic about Lyten’s ability to execute,” said Bohne.
Lyten Plans European Battery Hub
Lyten sees the Morrow assets as a potential foundation for a broader European industrial operation.
Dan Cook, CEO and co-founder of Lyten, said the company wants to develop a scalable battery and energy-storage production base spanning Europe and the United States.
“Europe has entered a sustained period of infrastructure investment, and batteries are now an important part of this critical infrastructure,” said Dan Cook, CEO and co-founder of Lyten.
Lyten is evaluating an expansion of the Morrow site into a potential “Lyten Industrial Hub.” The company said the concept could combine battery manufacturing with upstream and downstream energy-storage activities and industrial operations serving sectors including AI data centers, mobility and defense.
Lyten is pursuing a similar hub concept at the former Northvolt site in Skellefteå, Sweden.
Morrow’s 1 GWh LFP Facility
Morrow opened a smaller industrial facility at its Arendal headquarters in 2024 for the production of prismatic LFP battery cells. The facility was designed with annual production capacity of 1 GWh.
The company had planned to expand the Arendal operation through four stages to eventually reach 43 GWh, but the planned expansion did not materialize because Morrow was unable to secure the necessary investment.
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The initial 1 GWh facility also faced challenges during its production ramp-up and did not reach series production. In January 2026, Morrow said it was ready for series production and was pursuing a partnership-based strategy involving long-term investment and strategic alliances.
Morrow later entered insolvency proceedings as it faced a combination of challenges, including the capital-intensive nature of industrialization, increased competition and oversupply in the global battery market, pricing pressure, higher capital costs, delays in industrialization and a more constrained investment environment.
The proposed Lyten acquisition could therefore provide a new route for the Arendal facility and Morrow’s battery technology activities to continue under new ownership.
