Carmakers still wary of Northvolt revival

Lyten will need to convince carmakers it can succeed where bankrupt Swedish EV battery maker Northvolt failed — creating a European champion to reduce the region’s reliance on China.

- MARIE MANNES ALESSANDRO PARODI GILLES GUILLAUME

Lyten, which develops lithium-sulphur batteries, unexpectedly announced on Aug 7 it was buying Northvolt’s assets, offering a lifeline to future European battery production for electric vehicles.

But customers and investors burned by the Northvolt experience remain wary of committing without seeing a proven product that can be delivered at scale, interviews with over a dozen battery industry experts, analysts and car company sources revealed.

As well as taking on Northvolt’s production of lithium-ion batteries, Lyten plans to develop its own lithium-sulphur batteries for EVs but will need substantial funds and lacks the Swedish company’s erstwhile $50 billion order book.

Lithium-sulphur cells are one of several next-gen battery chemistries, promising a lighter, lower-cost alternative and lower dependence on critical minerals from China, but are still in their infancy.

Lyten currently produces lithium-sulphur cells at a pilot plant in Silicon Valley in the US.

With a 2% stake, Jeep-owner Stellantis has been in partnership with Lyten since 2023 to explore applications of Lyten’s lithium-sulphur technology, including for battery cells, lightweight composites and onboard sensors.

A Stellantis spokesperson said any supply deals would depend on technical validation, industrial scale-up, local production capacity and commercial terms.

REGAINING CUSTOMERS

Northvolt, despite attracting backers including Goldman Sachs, collapsed with $8 billion in debt in March after losing orders and key investor support, and missing production targets. Carmakers scaling down their electrification plans have also hit EV battery demand.