Lyten acquires Europe’s largest battery energy storage facility from Northvolt to boost lithium-sulfur supply

Lyten, a San Jose-based energy technology company and developer of lithium-sulfur battery technology, has acquired the Northvolt Dwa ESS manufacturing facility in Gdansk, Poland, in a strategic move to expand its global battery energy storage systems (BESS) footprint. This acquisition, announced in June 2025, gives Lyten full control of the 25,000-square-meter site, previously Europe’s largest BESS manufacturing hub. The factory, formerly owned by Northvolt Systems, will now serve as Lyten’s European base for scaling next-generation energy storage solutions.

The move comes at a time when energy storage demand is accelerating worldwide, with grid resiliency, data center growth, and renewable integration driving surging requirements. Analysts view the acquisition as a signal of Lyten’s intent to commercialize its proprietary lithium-sulfur technology on a global scale while benefiting from European supply chain incentives and manufacturing talent.

Why is Lyten’s acquisition of the Gdansk BESS facility from Northvolt seen as a pivotal moment for Europe’s energy storage supply chain?

Lyten’s purchase of the Northvolt Dwa ESS facility marks a major inflection point in the development of Europe’s energy storage value chain. The Gdansk site is the largest battery energy storage systems manufacturing plant in Europe, with installed capacity capable of scaling up to 6 gigawatt-hours (GWh) annually and room to expand to more than 10 GWh. Initially opened by Northvolt in 2023, the facility had entered a dormant phase amid a strategic review and bankruptcy-driven divestitures by Northvolt Systems.

Lyten’s immediate plan to restart operations at the site means that not only will existing BESS orders be fulfilled, but Europe will regain a critical supply chain node that supports local sourcing, manufacturing sovereignty, and geopolitical risk mitigation. According to industry sentiment, customers in Europe have shown increasing preference for domestically built energy storage systems using non-China-sourced materials, a strategic shift accelerated by the EU’s Green Deal Industrial Plan and U.S. Inflation Reduction Act-style responses across the continent.

By bringing lithium-sulfur manufacturing into Europe, Lyten is poised to reshape the chemistry landscape of stationary storage, replacing traditional nickel, cobalt, and manganese cathodes with sulfur-based alternatives that are abundant and cost-effective.

How does this strategic acquisition align with Lyten’s global lithium-sulfur battery roadmap and commercial ambitions?

Lyten’s acquisition of the Gdansk facility directly supports its broader roadmap to commercialize lithium-sulfur batteries across multiple verticals—ranging from defense and aerospace to stationary grid storage and electric vehicles. In addition to the Poland site, Lyten previously acquired a lithium-metal cell manufacturing plant in San Leandro, California from Northvolt, highlighting its two-pronged manufacturing approach in North America and Europe.

Lithium-sulfur cells developed by Lyten are already being deployed in commercial drone applications, are set to power Chrysler’s Halcyon Concept Electric Vehicle, and are scheduled for orbital testing on the International Space Station later in 2025. These milestones reflect growing confidence in the cell chemistry’s safety, energy density, and material sustainability. Institutional investors and export financing bodies have supported Lyten’s ambitions: the Export-Import Bank of the United States (EXIM) has committed $650 million in financing to help expand battery production and BESS deployment in emerging markets.

With the Gdansk facility now part of its portfolio, Lyten gains access not only to world-class robotics and automation infrastructure but also to the Port of Gdansk’s export logistics and a skilled Polish engineering workforce. The company’s strategy blends Silicon Valley innovation with scalable European industrial capacity, making it a competitive contender in the evolving global energy storage race.

What makes Lyten’s lithium-sulfur battery chemistry distinct from traditional lithium-ion for BESS applications?

Lyten’s lithium-sulfur battery design offers several key advantages over conventional lithium-ion chemistries, particularly for grid-scale energy storage systems. Firstly, lithium-sulfur operates efficiently across broader temperature ranges, a crucial factor for outdoor deployments in regions facing extreme heat or variable climate conditions. Secondly, it eliminates dependency on critical minerals such as cobalt, nickel, manganese, and graphite—many of which face geopolitical supply risks or unsustainable mining practices.

Instead, lithium-sulfur relies on more abundant and cost-effective materials available throughout the United States and Europe. The chemistry also achieves higher energy density per unit mass, enabling lighter installations and more compact system designs—a factor that can translate into reduced installation costs and better land use in urban settings.

Analysts believe lithium-sulfur could emerge as a dominant second-generation battery format for stationary energy storage, complementing other solid-state and sodium-ion chemistries. By combining high safety profiles with decarbonized material inputs and robust lifecycle potential, Lyten’s technology presents a viable path forward as traditional lithium-ion approaches limitations in cost and sustainability.

What institutional and local support is driving Lyten’s manufacturing restart in Gdansk, Poland?

Lyten has emphasized the strong backing it has received from local and national stakeholders in Poland, including the Port of Gdansk authorities and elected officials. The Polish government has actively promoted its position as a key battery hub for Europe, and Gdansk’s proximity to export terminals and talent pipelines makes it a strategic choice for pan-European energy innovation.

Lars Herlitz, Lyten’s Chairman and Co-Founder, noted that European customers are increasingly demanding locally made energy storage solutions, free from volatile import channels. The reactivation of the Gdansk site addresses this demand head-on. Local leadership, including Gdansk Mayor Aleksandra Dulkiewicz, expressed support for the project, highlighting its potential to drive regional innovation clusters and support academic-industry R&D linkages.

Robert Chryc-Gawrychowski, CEO of Northvolt Poland, further affirmed Lyten’s role in continuing Northvolt’s mission to advance sustainable battery production, especially in transitioning toward chemistries that no longer rely on imported critical minerals.

How are investors and analysts interpreting Lyten’s growing manufacturing footprint and financial backing?

Institutional sentiment around Lyten has grown more favorable in recent quarters, buoyed by its ability to secure equity capital exceeding $425 million and access export financing lines of credit. Analysts see Lyten’s twin acquisitions—from Northvolt in California and Poland—as an effort to de-risk global supply chains and secure diverse production channels ahead of expected lithium-sulfur commercial scaling in 2026–2027.

The company’s alignment with defense, aerospace, automotive, and now grid infrastructure segments indicates a portfolio diversification strategy that appeals to long-term investors. The upcoming demonstration aboard the International Space Station will further validate its battery’s resilience and viability in extreme conditions, potentially expanding its market credibility.

With contracted BESS orders at the Gdansk site already extending into 2026 and its reactivation expected within weeks, Lyten is moving fast to turn fixed assets into cash flow. Investors also note that Lyten’s acquisitions were executed during Northvolt Systems’ bankruptcy proceedings, possibly securing valuable assets at below-market valuations.

What is the projected outlook for Lyten’s European BESS expansion and its implications for energy resilience?

Lyten’s acquisition of the Gdansk BESS factory has implications far beyond corporate growth. It reflects broader industry shifts toward diversification of battery chemistries, geographic decentralization of manufacturing, and the rise of technology sovereignty narratives in energy strategy.

With lithium-sulfur batteries being touted as safer, lighter, and more sustainable, and with the Gdansk site soon capable of producing several gigawatt-hours annually, Lyten is positioned to offer European governments and utilities a homegrown alternative to Chinese or Korean imports. Moreover, with energy resilience becoming a national priority—especially in light of AI data center energy demands and the Ukraine conflict’s grid stability implications—BESS systems are viewed as critical infrastructure.

Analysts forecast that BESS will outpace other battery market segments in growth by 2027, and Lyten’s move could fast-track lithium-sulfur’s dominance in this domain. The transaction is expected to close in the third quarter of 2025, pending regulatory and operational clearances.