Lyten Eyes Acquisition of Northvolt Battery Plant in Quebec
MONTREAL – Lyten, an American company based in San Jose, California, has announced its intention to acquire the Northvolt battery plant located in Quebec. This announcement follows their recent deal to purchase Northvolt's assets in Sweden and Germany.
The deal includes key assets such as the Northvolt Ett facility, its expansion, Northvolt Labs in Sweden, and Northvolt Drei in Germany. Along with these physical assets, Lyten will also acquire all of Northvolt's remaining intellectual property. However, the financial details of this transaction have yet to be disclosed.
In light of this acquisition, Lyten has indicated a strong interest in the Quebec market, particularly targeting the Northvolt Six project situated in the Montérégie region. The projected cost for this new factory is approximately $7 billion, which is expected to be established between Saint-Basile-le-Grand and McMasterville.
In a press release announcing the acquisition, Lyten stated it is "committed to pursuing the acquisition" of the Northvolt Six project. The company is currently in discussions with various stakeholders, including Northvolt North America, the Government of Canada, and the Government of Québec, to explore this opportunity further.
Founded in 2015, Lyten manufactures lithium-sulphur batteries primarily targeted for the drone and defense sectors within Silicon Valley. Their latest acquisitions, including the plants in Sweden and Germany, follow their earlier purchase of another Northvolt facility in Poland in early July and the acquisition of Northvolt's product portfolio related to battery energy storage systems shortly thereafter.
Additionally, in November 2024, Lyten secured the Northvolt Cuberg battery manufacturing facility in California. In relation to the Quebec project, Quebec's Minister of Economy, Christine Fréchette, has expressed the province's intent to meet with Lyten's representatives to gain insight into what the company has to offer.
Fréchette remarked that the provincial government holds the leverage to regulate or potentially refuse the acquisition, emphasizing the importance of a thorough assessment of this new endeavor.
Northvolt's North American CEO, Karen Chang, expressed positive sentiments regarding Lyten's interest, stating it signifies the promising foundations established through the Northvolt initiative and highlights Quebec's potential significance in the growth of the North American battery ecosystem.
It is noteworthy that Northvolt had filed for bankruptcy in Sweden on March 12, following extensive efforts to establish a viable financial and operational future for the company, as communicated by its North American division. At that time, Fréchette had hoped a new buyer would emerge to take over Northvolt's activities in North America.
The Quebec government had previously invested $270 million into Northvolt’s Swedish parent company prior to its bankruptcy filing in Europe. Additionally, Quebec's pension fund manager, the Caisse de dépôt et placement du Québec, had invested $200 million into the company.
This ongoing situation is a significant development in the battery manufacturing sector, particularly as Lyten explores opportunities to enhance its presence in Quebec and bolster the North American battery supply chain.
