This is a comment text. The author is responsible for the analysis and positioning in the text.
The story of Sweden’s biggest bankruptcy of all time now begins a new chapter.
Tentative title: The Resurrection.
A small American startup, Lyten from California, has taken over the huge battery factory in Skellefteå and the development facility in Västerås after a long delay.
The goal is to restart production as soon as possible. In the longer term, battery production will also take a new direction.
Is there hope this time?
Two basic things distinguishes Lyten’s setup from its predecessor.
Northvolt’s method was to destroy big targets and – with borrowed money in its pocket – quickly spend billions, hire thousands, and simultaneously build huge operations in multiple countries.
Speed blindness became one of the company’s fatal mistakes.
For Lyten, the financial conditions are different. What exactly the company is paying for the bankruptcy estate is unknown, but everything indicates that it is a scrap price that can largely be paid without burdensome loans. It creates a more secure foundation.
The second factor lies in production. Lyten is now to begin recommissioning an existing production facility that was apparently working well at the time of bankruptcy a year ago.
The starting distance can be short. And unlike Northvolt’s tactics – all at once and all at once – Lyten turns on one production line at a time and hires employees as production and sales grow.
In light of the earlier parts of this story, it appears as radical humility. But it’s hardly as if Lyten had any other choice. Circumstances have simply forced a more modest arrangement than Northvolt’s original dream.
The new vision that Lyten brings to Skellefteå means something else on a purely technical level.
The company’s proprietary product is a new battery chemistry that is different from the traditional one. Today’s lithium-ion technology is dominated by China. That’s what Northvolt wanted to tap into. But in Lyten’s own batteries, sulfur replaces several problematic raw materials: cobalt, graphite and nickel.
According to Lyten’s descriptions The product is superior in some ways. The battery will be lighter, more heat-resistant and theoretically can also be cheaper. The disadvantages so far are that it is relatively bulky and doesn’t last as long. This means that the product may be better suited for energy storage – i.e. for demand in the power grid – than for driving cars and trucks.
This product is also in a relatively early stage of commercialization. The idea is to bring the sulfur batteries onto the market in parallel with conventional production.
There is definitely a risk here. Not so little uncertainty. But when you consider Northvolt’s absolutely monumental failure, it looks like a fairly standard industrial challenge.
Read more:
Lyten completes purchase of Northvolt – hires 600 employees
Untested Chinese machines contributed to Northvolt’s bankruptcy
