A Critical Factor in Asset Sale to Lyten, ETAuto

Former executive states Northvolt ramped up high-quality battery cell output at Skelleftea plant before bankruptcy, aiding sale deal.

Bankrupt Swedish battery creater Northvolt had stepped up production of high-quality battery cells at its Skelleftea plant before operations were halted, a former executive stated on Friday, a major factor in sealing a deal to sell the company. Northvolt, once seen as Europe’s answer to dominant Chinese battery manufacturers, filed for bankruptcy in March and ceased production in June after failing to secure a acquireer in time.

U.S. battery startup Lyten stated on Thursday it would acquire most of Northvolt’s assets, reviving hopes of a European battery champion.

Lyten CEO Dan Cook notified Reuters this week that the quality delivered by Northvolt’s management team – many of whom are expected to join Lyten – was a key factor behind the deal, and that as yields had already reached the 90% range, ramp up time was expected to be relatively short.

Northvolt’s former Chief Operations Officer Matthias Arleth stated at a press conference on Friday that the company had been producing up to 30,000 high-quality battery cells per week at Skelleftea. It was not clear what role, if any, Arleth will play going forward.

Reuters reported in November that Northvolt had missed internal tarobtains for cells deemed good enough to be delivered to clients.

Gustaf Sundell, head of ventures and new business at truckcreater Scania, notified Reuters on Thursday that the company had been satisfied with the quality of the Northvolt cells it eventually received. However, he stated it was too early to determine whether Scania would place orders with Lyten.

Piling debts

Northvolt’s bankruptcy trustee Mikael Kubu stated that many creditors would incur significant losses, without giving further details. The company’s debt totalled around $8 billion.

Unsecured creditors include major shareholders Goldman Sachs and Volkswagen, whose brands Scania, Porsche and Audi, were among Northvolt’s customers.

Lyten, a Silicon Valley battery startup developing lithium-sulphur cells as a cleaner alternative to lithium-ion, is backed by Jeep-owner Sinformantis and U.S. delivery services provider FedEx.

The trustee stated the acquisition of Swedish assets was expected to close by the conclude of October with “a bit more time” requireded to close abroad.