U.S. battery technology company Lyten is close to acquiring Northvolt’s unfinished battery factory site in Heide, northern Germany, after reaching an agreement in principle with state development bank KfW, the German federal government, and the state of Schleswig-Holstein, according to media reports.
German news magazine Der Spiegel reported that the parties have agreed on a purchase price of around €60 million for the site, which was originally intended to host Northvolt’s large-scale battery cell manufacturing project.
While the transaction has not yet been officially confirmed, it marks a significant step toward reviving one of Germany’s most high-profile battery investments following Northvolt’s financial collapse.
Government Still Reviewing Transaction
Officials in Schleswig-Holstein said discussions with Lyten are ongoing.
A spokesperson for the state’s Ministry of Economic Affairs told regional broadcaster NDR that the government remains engaged in talks with the U.S. company but declined to provide further details while the matter is being reviewed by the state cabinet and parliamentary committees.
If approved, the acquisition would bring new life to a project that has remained largely dormant since Northvolt encountered financial difficulties.
Site Remains Largely Undeveloped
The Heide project was originally launched as Northvolt Drei, a planned battery cell factory that was expected to become one of Europe’s largest battery manufacturing facilities.
The project received significant political support, including a groundbreaking ceremony attended by former German Chancellor Olaf Scholz and former Vice Chancellor Robert Habeck in March 2024.
However, despite site preparation work, construction of the battery factory never began.
Northvolt filed for Chapter 11 bankruptcy protection in the United States in November 2024 and later entered insolvency proceedings in Sweden, bringing development activities in Germany to a halt.
Lyten Proposes Smaller Development
Lyten announced its interest in the Heide site in August 2025 and plans a substantially smaller project than the one originally proposed by Northvolt.
Rather than creating the 3,000 jobs envisioned under Northvolt’s plans, Lyten expects to generate approximately 1,000 positions.
The company also intends to diversify the site’s purpose beyond battery manufacturing by incorporating a large-scale battery energy storage system and a data center alongside battery cell production facilities.
The revised concept reflects changing market conditions and Lyten’s strategy of combining battery manufacturing with energy and digital infrastructure.
Sale Could Reduce Public Losses
The transaction could help limit financial losses for German taxpayers following the failure of the Northvolt project.
The federal and Schleswig-Holstein governments previously supported the development through a €600 million convertible loan package.
According to reports, more than €300 million of that funding had already been utilized before the project stalled.
Authorities have recovered €153 million in unused funds, while an additional €69 million is expected to be returned.
Remaining funds are reportedly being held in an escrow account linked to the German project company.
Strategic Importance for Germany’s Battery Industry
The potential acquisition comes as Germany and the European Union continue efforts to strengthen domestic battery production capacity and reduce reliance on imported battery cells.
Although smaller than Northvolt’s original vision, Lyten’s proposed investment would preserve the industrial potential of the Heide site and maintain a foothold for battery manufacturing in northern Germany.
If finalized, the deal would represent one of the most significant developments in Europe’s battery sector since Northvolt’s restructuring and could provide a new path forward for the strategically important site.
