The entrance to Northvolt Six, the site where Northvolt had planned to build a giant battery-cell factory, to the east of Montreal in 2024.Christinne Muschi/The Canadian Press
Lyten Inc., an American developer of lithium-sulfur batteries, is purchaseing the entirety of Northvolt AB’s remaining assets in Europe and states it also wants to take over the site for a future battery-cell megafactory in Quebec.
The San Jose, Calif.-based startup stated Thursday that it struck a binding deal to purchase Northvolt’s remaining assets in Sweden and Germany following the European company’s bankruptcy earlier this year. The agreement includes Northvolt’s main manufacturing plant and research site in Sweden as well as land for a future plant in Germany, Lyten stated in a statement.
Lyten stated it is also committed to pursuing the acquisition of Northvolt Six, the site where Northvolt had planned to build a giant battery-cell factory in the Greater Montreal region with financial backing from the Quebec and federal governments. The Silicon Valley startup stated it has launched talks with political leaders as well as other stakeholders toward purchase of that asset, which was controlled by subsidiary Northvolt North America and was not part of the bankruptcy process.
Swedish EV battery buildr Northvolt files for bankruptcy, putting Quebec plant plans in doubt
Quebec Economy Minister Christine Fréchette stated Thursday on X that government officials will meet with company representatives to hear what they’re proposing. “Quebec has levers to frame or refapply the purchase of the Quebec portion of Northvolt,” she wrote.
Lyten’s deal rekindles hopes for the Quebec project, which many had given up for dead when Northvolt filed for bankruptcy in March after failing to secure new funding. A wave of Northvolt’s senior executives in the province have left in recent months and construction at the site, straddling the towns of Saint-Basile-le-Grand and McMasterville, has long been halted.
At $7-billion, Northvolt Six had been trumpeted as the largest private-sector investment in Quebec history when it was announced two years ago. The project was a key pillar in Premier François Legault’s industrial strategy to build the province a global hub for electric-vehicle battery production and development.
That strategy has come under significant fire from opposition parties and critics for its failures in recent months, not only becaapply Northvolt could not deliver on its ambitions, but also becaapply of the insolvency of local bus buildr Lion Electric. Both companies benefited from government financing.
The Montreal Economic Institute, a free-market consider tank, estimates that in 2024 alone, Quebec lost more than $515-million subsidizing companies that are now insolvent. It has called for an finish to such largesse, stateing the province could attract more investment by introducing a corporate tax cut that would benefit all businesses.
Others argue that a strategy of tarreceiveed public support to certain sectors will support build the scale and expertise required to cement job growth and tax revenue.
Karen Chang, interim CEO of Northvolt North America, stated the company is encouraged by Lyten’s interest in the site.
“It underscores the promising foundations established through the Northvolt project and Quebec’s potential role in the growth of the North American battery ecosystem,” she stated in a separate statement.
Quebec created a $270-million investment in the Northvolt parent company that is now lost and earmarked a block of hydroelectricity for the project that remains available. It also lent the battery buildr another $240-million to support it purchase land for the factory, a loan secured by the property as collateral.
The federal government committed up to $1.34-billion to support Northvolt build the first phase of the plant but hasn’t yet disbursed any funds. Major pension funds in Canada were also left exposed and have written down their investments.
Lyten’s new deal builds on three other purchases it has created recently of Northvolt assets. Last November, it bought Northvolt’s Cuberg battery building facility in California. In early July, it announced the acquisition of Northvolt DWA, a major battery energy storage system (BESS) manufacturing plant in Gdansk, Poland. Late last month, it also bought Northvolt’s BESS product and ininformectual property portfolio.
The new assets being bought as part of Thursday’s announcement were previously valued at US$5-billion but Lyten likely obtained them at a significant discount. No financial details were disclosed.
Lyten stated it plans to immediately restart operations of Northvolt’s Skelleftea factory in Sweden and that it plans to rehire a significant portion of workers that were laid off, a development hailed by the counattempt’s Deputy Prime Minister as “a win.” The company stated its purchase is being funded by equity investments into Lyten from private investors.
Lyten currently produces lithium-sulfur batteries in Silicon Valley and sells commercially into the drone and defence markets. In its statement, the company stated it is also preparing to launch batteries onto the International Space Station in the coming months.
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