U.S.-based battery startup Lyten is facing the challenge of convincing carmakers it can deliver where bankrupt Swedish firm Northvolt failed, by building a European battery champion to reduce reliance on China.
Earlier this month, Lyten announced it had acquired Northvolt’s assets at a substantial discount, raising hopes for the revival of European EV battery production. The company plans to continue making lithium-ion batteries while also pushing forward with its own lithium-sulfur cells, a next-generation technology that promises lighter, cheaper batteries with less dependence on critical Chinese minerals.
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However, industry insiders remain cautious. Several automakers, including Volkswagen brands, Scania, Volvo, and BMW, have either cut ties with Northvolt or remain reluctant to commit without proven large-scale production. Analysts say Lyten still lacks the scale and order book Northvolt once had, and lithium-sulfur technology may not be commercially viable for cars before 2030.
Lyten CEO Dan Cook said the company aims to prove itself by delivering consistent volumes to a single customer first. Backed by investors and supported by a small stake from Stellantis, Lyten is also seeking European Union funding to accelerate expansion. Cook noted that the deal could bring forward large-scale lithium-sulfur cell production to 2028.
Still, experts caution that crossing the industry’s so-called “valley of death,” the phase of unprofitable early production, will require billions in capital and government subsidies. Competing startups in Europe, the U.S., and Australia are also racing to commercialize next-gen cells, while Chinese battery giants like CATL continue to dominate with more advanced semi-solid and solid-state designs.
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For now, Lyten’s acquisition offers Europe a second chance at homegrown EV battery manufacturing, but whether carmakers will trust the newcomer after Northvolt’s collapse remains uncertain.
