Lyten, a California-based battery startup, has thrown itself into one of Europe’s most ambitious clean-tech challenges: reviving domestic electric vehicle (EV) battery production. Earlier this month, the company stunned the industry by acquiring the assets of bankrupt Swedish battery manufacturer Northvolt — once hailed as Europe’s best hope for competing with China’s battery dominance.
The move has sparked cautious optimism, but skepticism looms large. Automakers, suppliers, and investors who lost faith in Northvolt’s promises of large-scale, high-quality battery production are hesitant to jump back in without proof Lyten can deliver at scale.
From Northvolt’s Collapse to Lyten’s Leap
Northvolt’s fall earlier this year left a gaping hole in Europe’s battery ambitions. Despite raising billions from investors like Goldman Sachs and securing a $50 billion order book, the Swedish firm crumbled under $8 billion in debt, missed production milestones, and lost key customers. Its flagship factory in Skellefteå was just starting to ramp up to 30,000 lithium-ion cells per week when the company shut down in March.
Lyten’s acquisition comes at what many see as a pivotal moment. European governments are pushing for energy independence, yet bureaucracy, rising costs, and slowing EV sales have stalled local battery efforts. Chinese firms like CATL and BYD dominate the market, while U.S. and Asian rivals are racing ahead with advanced chemistries such as solid-state cells.
Lyten, which has been developing lithium-sulfur batteries in Silicon Valley, hopes to change that narrative. CEO Dan Cook says the deal accelerates its plans to produce lithium-sulfur EV batteries at scale by 2028 — two years earlier than initially projected.
Betting on Lithium-Sulfur
Lithium-sulfur is widely seen as one of the most promising next-generation chemistries, potentially offering lighter, cheaper, and less resource-intensive batteries than lithium-ion. Unlike today’s dominant cells, lithium-sulfur batteries rely less on expensive minerals like nickel and cobalt, reducing dependency on China’s supply chains.
But the technology is still experimental, and experts warn it may not be commercially viable for vehicles until at least 2030. Competing startups such as Germany’s Theion, Australia’s Gelion, and U.S.-based Zeta Energy are also chasing the same breakthrough.
Lyten currently operates only a pilot plant in California, which limits its ability to demonstrate commercial readiness. “Lyten was not a name anyone would have associated with lithium-ion manufacturing until this acquisition,” said James Frith of Volta Energy Technologies.
Automakers Remain Cautious
Despite Lyten’s bold ambitions, European automakers are keeping their distance. BMW, which canceled a €2 billion order with Northvolt last year over quality concerns, said any future supply deals would take “a long lead time.” Scania called it “too early” to discuss orders, while Volvo Cars declined to comment altogether.
Lyten’s most prominent automotive backer is Stellantis, which took a 2% stake in the startup last year to explore applications for its battery technology and other advanced materials. But Stellantis has also hedged its bets, investing in other battery ventures such as France-based ACC.
The Investment Challenge
Cook has not disclosed the purchase price for Northvolt’s assets but confirmed it was acquired at a “substantial discount” with backing from private investors. Lyten plans further fundraising rounds and hopes to tap European subsidies, including the EU’s battery innovation grants, to finance scaling efforts.
Still, industry insiders warn that Europe’s path to a competitive battery industry will require massive subsidies and patience. “China spent 15-20 years and more than $150 billion to build its lead,” said Rob Anstey, CEO of battery materials company GDI. “If you think you can shortcut that, you don’t understand batteries.”
Europe’s “Valley of Death” Moment
Emma Nehrenheim, former Northvolt executive and now head of the European Battery Alliance, describes the next five years as a “valley of death” for the region’s battery makers — a period where factories run at a loss before achieving scale. Without consistent policy support, she warns, Europe risks ceding even more ground to Asia.
Lyten’s acquisition does give Europe a lifeline: Northvolt’s advanced R&D facilities and partially developed manufacturing base remain some of the most sophisticated outside Asia. By combining these with its Silicon Valley materials expertise, Lyten hopes to fast-track innovation.
Chief sustainability officer Keith Norman says the company is already working with automakers on lithium-sulfur validation. “We believe the market will be surprised at how quickly we can bring this chemistry into multiple sectors,” he said.
Whether Lyten becomes Europe’s battery savior or simply another cautionary tale will depend on one thing: execution. The startup now holds a valuable platform, but scaling from a pilot plant to gigafactory production in an unforgiving market will be the true test.
