American startup Lyten, which specialises in the development of lithium-sulphur batteries, has just announced the acquisition of the assets of Swedish EV battery manufacturer Northvolt. The objective: to create a European EV battery giant capable of reducing dependence on China for critical materials.
In the automotive industry, manufacturers remain cautious. The failure of Northvolt, which had attracted major investors, continues to deter potential customers.
A risky bet for Lyten
Lyten isn’t simply taking over the lithium-ion battery production initiated by Northvolt. The company also wants to develop its own lithium-sulphur technology for electric vehicles.
However, several major challenges lie ahead. Lyten currently only produces in a pilot plant in California. The company needs massive capital: Unlike Northvolt, the startup does not have a $50 billion USD order book.
Perhaps most importantly, the market is cool at the moment. Northvolt's former customers, burned by production delays and bankruptcy, are reluctant to sign new contracts without proof of large-scale performance.
Stellantis, a cautious partner
The Stellantis group has held a 2-percent stake in Lyten since 2023 and is collaborating on several applications of lithium-sulphur technology, ranging from battery cells to lightweight composites and onboard sensors. However, Stellantis remains cautious: any supply agreement will depend on technical validation, proof of industrial production capacity and commercial conditions.
Northvolt a giant that fell from grace
Founded with high hopes, Northvolt had attracted prestigious investors like Goldman Sachs and established partnerships with manufacturers such as Volkswagen Volvo and Scania. But the company collapsed in March 2025 with a colossal debt of 8 billion USD.
Lyten will have to convince manufacturers
Lyten CEO Dan Cook hopes that Northvolt's former customers — including Volkswagen — will return if the company proves its reliability by delivering in low volume but with consistency and quality.
A race against time for a European champion
With rising trade tensions and growing dependence on China for critical materials, Europe is desperately seeking to establish a major player in EV batteries.
Lyten could play this role, but its success will depend on its ability to industrialize its lithium-sulphur technology, which is still at the experimental stage, secure massive financing and restore the confidence of car manufacturers.
For now, the bet remains uncertain.