Northvolt Bankrupt, Shuts Down Battery Plant in Sweden, Takes Over by Lyten

The production of electric car batteries at the Northvolt plant in Skellefteå, in northern Sweden, has stopped. After the bankruptcy declaration on March 12, despite the interest of some international groups, no buyer has been found to save the plant. Of the 900 pre-bankruptcy employees, only 300 remain today. A hard blow for the European automotive industry and for the ambitions of industrial autonomy in the battery sector.

The story of Northvolt, founded in 2015 by former Tesla employees Peter Carlsson and Paolo Cerruti, comes to an end after ten years of great promise and just as many difficulties. The company, which had raised over 15 billion euros from investors such as Volkswagen and Goldman Sachs, had become the symbol of the European desire to build an independent supply chain for electric mobility . But between production delays, the cancellation of the BMW mega-order and the lack of competitive public subsidies compared to the Chinese giants, the dream was shattered.

While the closure of Skellefteå marks the end of an era, the Northvolt Dwa ESS factory in Gdansk, Poland, is preparing for a rebirth. It has been taken over by the American startup Lyten , which specializes in lithium-sulfur batteries and energy storage technologies. The 25,000 m² facility, the largest in Europe for BESS (Battery Energy Storage Systems), will be reactivated to fulfill orders already confirmed until 2026. The current production capacity of 6 GWh can be expanded to 10 GWh.

“We plan to immediately restart operations in Poland and deliver orders from existing and new customers,” said Lyten CEO Dan Cook . “The Port of Gdansk and local institutions are supporting us in combining Silicon Valley technology with Polish engineering talent.”

The Lyten takeover is a mockery of the European industry: while carmakers like Stellantis rely on Chinese suppliers like CATL , European joint ventures are struggling. ACC ( Stellantis , Mercedes , TotalEnergies ) has suspended work at key sites like Termoli. The sale of the Polish factory to an American player highlights the EU's difficulties in building an autonomous and competitive supply chain.

Lyten is not just any name. Its lithium-sulfur batteries have already been used on drones, on the International Space Station and in Chrysler's Halcyon concept (Stellantis group). The company is targeting the rapidly expanding BESS segment to meet the energy demands of data centers, AI and emerging markets. With the acquisition of Dwa ESS, Lyten is strengthening its presence in Europe and relaunching the technological challenge.

The fate of Northvolt’s other locations in Germany and North America remains uncertain. As with Gdansk, the future will depend on the ability to attract new investors and relaunch industrial assets. But one thing is certain: the closure of Skellefteå marks a turning point in Europe’s race for energy independence. And perhaps, also a missed opportunity.