The largest European energy storage systems factory goes under the American pavilion

The Northvolt group, which specializes in the manufacture of batteries for electric vehicles, has gone bankrupt, crumbling under a mountain of debts. The American giant Lyten bought the Polish activities of this Swedish company.

Northvolt was a European bridgehead in the manufacture of lithium-ion batteries for electric vehicles, but in March the company filed its bankruptcy, victim of the slowdown in demand in electric cars, production delays and enormous debt. It is, therefore, the American Lyten who takes over the activity, and more specifically the Polish activities of the Swedish group. The announcement was made Tuesday, July 1, but the amount of the transaction was not, however, was unveiled.

More than the simple batteries for electric cars, the Polish Northvolt site specializes in the manufacture of solar and wind energy storage systems. It is a rapidly growing market because these storage systems meet the growing demand for computer data centers, the datacenters, which demand a lot of energy to function. However, the technology mobilized in Poland is that known as the Bess which does not use nickel, manganese, cobalt or graphite which is not extracted or treated on the old continent. It thus responds to the demand of local customers who want more and more short circuits and systems using European supply chains to deal with geopolitical risks.

If the technology in question made on the Northvolt site in Poland will actually provide customers in Europe, it will also be used to maintain electrical networks. In Europe, but also in the United States, there is a need to modernize their network. The storage elements made in Poland will therefore also serve on American soil. This is a double blow made by the American manufacturer Lyten.

Northvolt was created in 2016 by two Americans. Two former Tesla who had chosen Sweden to install their factory and conquer the European electric battery market. But, over the years, the Swedish management has seen too large and has embarked on expensive buyouts and investments that led it to its loss. The resumption of Polish activities by the American Lyten is ultimately only a return to the fold, but not entirely. The Liquidator of Northvolt is indeed looking for buyers for the other activities of the group, in particular in Sweden. If a potential European buyer manifests itself, it will be welcome.