In a significant development, American company Lyten has acquired the bankrupt Swedish battery manufacturer Northvolt for approximately 50 billion kronor. This acquisition includes Northvolt's facilities in Skellefteå, Västerås, and Heide, Germany. The deal is expected to revive Northvolt's operations and rehire a significant portion of its former workforce, marking a positive turn for Sweden's energy sector and its role in Europe's energy independence.
American Company Lyten Acquires Northvolt in a $5 Billion Deal
American Company Acquires Northvolt – 'A Pivotal Moment'
Battery company Northvolt transitioned from a promising future industry to a harsh bankruptcy. However, hope is rekindled as American company Lyten acquires Northvolt in a deal valued at approximately 50 billion kronor.
- Today's announcement is very welcome, says Energy Minister Ebba Busch (KD).
Battery manufacturer Northvolt went bankrupt in March, and since then, the bankruptcy trustee has been desperately trying to sell the company.
On Thursday, the American battery company Lyten announced that they are purchasing the remaining parts of the company – a factory in Skellefteå, a research facility in Västerås, and a plant in Heide, Germany.
- This is a pivotal moment for Lyten, says Dan Cook, CEO of Lyten in a press release.
Previously, Lyten owned Northvolt's factory in Poland and one of Northvolt's companies in the USA.
Thursday's deal is valued at $5 billion, approximately 50 billion kronor. Northvolt's battery production capacity is estimated to be around 30 GWh, half of which is still under construction.
Laid-off Employees May Get Jobs Again
Lyten plans to resume operations at the Swedish facilities as soon as possible after the purchase is completed. "A significant portion" of the staff previously laid off from Northvolt may now be rehired, Lyten states.
"Lyten sees great value in retaining local expertise and is committed to creating long-term employment opportunities as we resume and expand operations," writes Lyten.
Last spring, when the bankruptcy was a fact, over 2,800 people lost their jobs at Northvolt. The union IF Metall organizes a large part of the workers at the company's factories, and when Lyten's purchase was announced on Thursday, the union's president Marie Nilsson welcomed the deal.
"It is gratifying that the good conditions for continued battery manufacturing at Northvolt's facility can be utilized. I am convinced that the new owners also want to benefit from the expertise of all IF Metall members who have worked with battery production and development in Skellefteå and Västerås. IF Metall looks forward to a good collaboration with the new owners," she writes on Facebook.
'A Win for Sweden'
Energy Minister Ebba Busch (KD) also sees several advantages with the deal:
- Lyten's acquisition of Northvolt's assets is a win for Sweden, for Northvolt's former employees, and for Sweden's position as a key player in Europe's energy independence, she says in the bankruptcy trustee's press release.
Labor Market Minister Johan Britz (L) is pleased that many can now get their jobs back at the company:
"It is welcome that Northvolt's operations are now taken over by Lyten. That they plan to rehire a significant portion of previously laid-off staff is a joyful announcement. For Skellefteå, for Sweden, and for the green transition," he writes on X.
The Green Party's spokesperson Daniel Helldén joins the chorus of praise:
"This is a victory for the climate transition and Skellefteå! Northvolt's factory has been sold and operations are resuming. The company will also work with new technology for cobalt-free batteries. Well done," he writes on X.