Criticism has emerged regarding past government investment decisions in Northvolt, with current Minister Katherina Reiche labeling them as flawed despite initial positive assessments.

Lyten, a Silicon Valley-based battery company, has announced plans to acquire all remaining assets of the insolvent Swedish battery manufacturer Northvolt, including a factory currently under construction in Heide, Schleswig-Holstein.

This acquisition announcement was made on August 7, 2025, although financial details regarding the deal have not been disclosed.

Schleswig-Holstein's Prime Minister, Daniel Günther, expressed optimism about the preliminary agreement but acknowledged that several hurdles remain before the deal can be finalized.

Northvolt, once a significant player in the European electric vehicle battery industry, faced financial struggles leading to its insolvency filing in March 2025 after failing to secure critical funding.

Concerns have been raised regarding the viability of the Heide factory project, which is part of a €4.5 billion initiative, especially given the potential losses from state funding.

The completion of the acquisition is anticipated by the end of 2025, pending necessary regulatory approvals from Sweden, Germany, and the EU.

Mikael Kubu, Northvolt's insolvency administrator, stated that Lyten's offer was compelling, indicating a commitment to continue operations and resume battery production.

Lyten's CEO, Dan Cook, emphasized the acquisition as a pivotal moment for the company, aiming to become a leading provider of locally sourced and manufactured batteries in North America and Europe.

The German Federal Ministry of Economics confirmed that Lyten has signed purchase agreements for both the Swedish and German operations of Northvolt.

Lyten plans to resume operations at the Skellefteå and Västerås sites immediately after the deal closes and restart production in Poland to meet international demand.

Although the EU Commission approved direct funding of approximately €700 million for Northvolt in early 2024, these funds have yet to be disbursed.