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The story of Sweden’s largest bankruptcy in history is now entering a fresh chapter.
Preliminary headline: The Resurrection.
A small American startup, Lyten from California, has, after a long delay, taken over the massive battery factory in Skellefteå and the development facility in Västerås.
The goal is to restart production shortly, with a shift in direction for battery production in the longer term. The acquisition marks a significant turning point for the struggling Swedish battery industry.
Is there hope this time?
Two fundamental things differentiate Lyten’s approach from its predecessor.
Northvolt’s strategy involved making bold announcements and quickly spending billions of dollars – funded by loans – to rapidly hire thousands of employees and build large-scale operations in multiple countries simultaneously.
This speed proved to be one of the company’s fatal flaws.
Lyten’s financial situation is different. While the exact purchase price for the bankruptcy estate remains undisclosed, indications suggest it was a bargain that can be paid for largely without burdensome debt, creating a more secure foundation.
The second key factor lies in production. Lyten plans to restart an existing manufacturing operation that appeared to be functioning adequately at the time of the bankruptcy a year ago.
The initial phase could be quick. Unlike Northvolt’s “everything, everywhere, all at once” tactic, Lyten intends to fine-tune one production line at a time and hire employees as production and sales grow.
In light of this story’s earlier chapters, this approach appears remarkably humble. However, Lyten has had little choice. The circumstances have simply forced a more modest plan than Northvolt’s original ambition.
The new vision Lyten brings to Skellefteå also represents something different on a purely technical level.
The company’s own product is a new battery chemistry that differs from the traditional approach. Today’s lithium-ion technology is dominated by China, a position Northvolt attempted to challenge. However, Lyten’s batteries replace problematic raw materials – cobalt, graphite, and nickel – with sulfur.
According to Lyten’s descriptions, the product offers advantages in certain areas. The battery is lighter, more heat-resistant, and potentially cheaper. The drawbacks, so far, are that it is relatively bulky and doesn’t last as long. This makes the product potentially better suited for energy storage – for needs within the power grid – rather than powering cars and trucks.
This product is also in a relatively early stage of commercialization. The plan is to launch the sulfur batteries on the market alongside conventional production.
There is, of course, risk involved, and a degree of uncertainty. However, it appears to be a more normal industrial undertaking when compared to Northvolt’s monumental failure.
Read more:
Lyten completes Northvolt acquisition – to hire 600
Untested Chinese machinery contributed to Northvolt’s bankruptcy
