Originally published in Svenska Dagbladet by Björn Jeffery, August 7, 2025

The Northvolt bankruptcy estate is being bought up by the American company Lyten. The sale is a comeback — but it came at a high price.

Bankruptcy administrator Mikael Kubu has probably not had a particularly relaxing summer. After Northvolt went bankrupt in March this year, the work of trying to salvage parts of the battery company has been intense. In early July came the news that American Lyten would take over part of Northvolt’s Polish operations, Northvolt Dwa Ess. Now, just over a month later, they are also taking over the factory in Skellefteå, the development operations in Västerås and the partially built factory in Heide, in northern Germany.

The deal is a form of vindication, as many critics had argued that Northvolt’s bankruptcy was an example of a project that was misconceived from the start. That Lyten is opening its wallet in this way shows that there are more industry players who see value in what Northvolt intended to create.

Lyten’s CEO Dan Cook says in a press release that they will invest in “clean, locally produced batteries and energy storage systems in both North America and Europe.” They could have shortened that somewhat by writing “not Chinese,” because that is in practice the same thing in this context. But the hypothesis is similar to what we heard from Northvolt’s CEO and founder from the very beginning — there is demand for green batteries in the local area.

Whether Lyten is right in its analysis, and manages to deliver what Northvolt itself did not, remains to be seen. But it looks like fairly uncharted territory they are moving into. According to Lyten’s website, they have around 325 employees. Northvolt had, before the bankruptcy, around 5,000. They also write that they have previously secured funding of around 6 billion kronor. The corresponding figure for Northvolt was around 100 billion kronor.

So it is David buying Goliath here.

Which other interested parties looked at the bankruptcy estate, we do not currently know. Previously there had been big question marks around whether a Chinese owner might be conceivable and permitted to own an asset of this kind, but that scenario need not be tested now. Given the outcome, we can assume that Lyten appeared best placed and most realistic to complete the deal — valuing the assets at around 50 billion kronor according to the press release.

If it is a vindication for Northvolt, it came at a high price. Much of the staff has had to look for new jobs and customers were forced to find new suppliers. The brand has taken a serious hit. Many of the investors have attracted heavy criticism, and even if they possibly get a little money back in this deal, it is nowhere near the outcome they were hoping for. It is a fresh start — with all the difficulties and opportunities that come with it.

Was it only the circumstances that caused Northvolt to fail? An overly complex rollout of battery manufacturing combined with poor timing around financing in the later stages? Lyten at least seems to be making that assessment. But realistically, there is still some way to go before Northvolt can fulfil the vision they once sold to Skellefteå, Sweden and the world. Many things need to fall into place.

Bringing in new players who believe in these large-scale infrastructure projects has been a recurring theme throughout Northvolt’s history. Now we have a new one. Do they see something that everyone else has missed or misunderstood? Or will they join the line of those who have staked billions on a vision that has proved difficult to realise? Only time will tell. But finding believers has always been Northvolt’s strength.

Lyten has problems financing its acquisition of Northvolt. The deal was presented in August and the American company has still not secured the money needed, SvD has learned. Anxiety is growing in Skellefteå.

The rescue of the battery giant in the north hangs in the air.

Weeks have become months and months have almost turned into half a year without anything happening.

On 8 August, the deal was presented at a well-attended press conference to nothing but smiles: “This is a pivotal moment for Lyten,” said CEO Dan Cook. Deputy Prime Minister Ebba Busch also praised the deal and said that tears of sorrow had been replaced by a sigh of relief.

Today, more than five months later, people are still waiting for the final payment to be made.

First it was said the deal would close in October. Then that it would be completed in December. Now the bankruptcy administrator is talking about January.

SvD has been in contact with sources with insight into the deal and the message is clear: “Lyten has not managed to secure the financing. Not yet at least.”

The company needs to both borrow money from banks or financial institutions and bring in new capital from existing owners — something it has not managed to do. How much money Lyten is chasing is unclear; the size of the purchase price has never been made public.

Much else is also a question mark. The company has not published information about revenue and results and has also not been willing to state exactly which owners stand behind the operations.

What we know is that it is a private battery company founded in 2015 and based in California with just over 300 employees.

According to SvD’s sources, an intensive effort is now under way behind the scenes to find the right financiers. Perhaps the deal is only days away. Perhaps it will take considerably longer.

“A lot needs to fall into place to get the right investors on board. They are not exactly lining up outside Lyten’s door. The recent geopolitical drama has not helped the process either,” says a source with insight into the matter.

A few weeks before the big August press conference, the news agency Bloomberg published information that Lyten had raised around 2 billion kronor from existing investors to finance the acquisition of Northvolt’s Polish factory — but that is a deal that is separate from the one in Sweden. No corresponding information about the financing of the Northvolt acquisition in Skellefteå has been published.

Lyten’s problems are somewhat reminiscent of the green steel giant Stegra’s dilemma. There too, they are chasing more money, and there too it is going slowly, according to information that has leaked out.

Northvolt’s bankruptcy administrator Mikael Kubu is tight-lipped about Lyten’s financing problems: “That is not something I can comment on. However, I can note that since 1 November, Lyten has been paying wages for the staff and covering operating costs for the factory in Skellefteå,” he says.

But the factory is standing still. The roughly 170 employees are working only on maintenance — ensuring that machines and equipment do not collect dust while waiting for the factory to open properly, if or when the deal is completed.

Kubu often returns to the analogy of a property sale: that Lyten, when signing the contract in August, paid a deposit, and that they are now waiting for the final payment. Asked whether it is not his obligation as bankruptcy administrator to ensure that a serious financing arrangement is attached to a bid, he replies: “When the bid came, we made a joint assessment — in consultation with priority creditors, a bank consortium consisting of 17 banks along with Scania — that this was a reasonable bid given the conditions that existed at the time.”

A senior person in the venture capital industry, with extensive experience of acquisitions, takes the view that five months from contract signing to completion is a long time — especially when two deadlines have been missed. “I would probably say that the probability of the deal not going through is fairly high.”

In Skellefteå, questions are multiplying as the days pass without anything happening. “My God, people are extremely worried,” says Victoria Hart, a former Northvolt employee and union representative for IF Metall. “If the deal falls through it is a devastating blow for Skellefteå. Many foreign engineers and specialists will be forced to leave Sweden shortly. It is a race against the clock before the Migration Agency decides they have to get on a plane home.”

SvD has contacted Lyten, which declines to comment on the ongoing financing process. The company instead refers to a statement from marketing director Keith Norman: “This is a complex acquisition and we are eager to complete it as quickly as possible. We have from the outset been optimistic about the timeline for getting everything in place. Some parts are taking longer than expected, but overall the acquisition is progressing according to plan.”