Reuters, July 1, 2025 – In a decisive move to expand its global footprint in the energy storage sector, Silicon Valley-based startup Lyten announced on Tuesday that it will take full ownership of Northvolt Dwa ESS, previously Europe’s largest energy storage system (ESS) factory, located in Gdansk, Poland.
The transaction follows Northvolt’s bankruptcy filing in March 2025, which marked one of Sweden’s largest corporate collapses in recent history and a major setback to the EU’s ambitions of developing a homegrown battery champion to rival dominant Chinese manufacturers.
Northvolt had shuttered the Gdansk-based factory in November 2024, after just one year of operation, citing liquidity issues and insufficient cash flow to meet customer commitments.
Lyten to Restart European ESS Production
“We plan to immediately restart operations in Poland and deliver on existing and new customer orders,” said Dan Cook, CEO and co-founder of Lyten, in a press statement.
The company confirmed that the 25,000-square-meter (269,000-square-foot) facility would be fully reactivated. It houses equipment capable of producing up to 6 GWh of battery energy storage systems annually, with infrastructure in place to scale up to 10 GWh as demand grows.
The restart is expected to stabilize European supply chains, address regional energy security concerns, and help meet rising demand for grid-scale energy storage, especially in markets transitioning to renewables.
Orders Extend Through 2026
According to Lyten, the facility in Gdansk already has contracted orders extending into 2026, underlining robust market demand despite the recent industry volatility.
These orders, reportedly from a mix of utility, industrial, and commercial energy users, are tied to applications in grid-balancing, peak shaving, and renewable energy integration.
The acquisition is seen as a strategic leap for Lyten, whose lithium-sulfur battery and 3D graphene platform has been attracting attention for its promise in lightweight, sustainable energy storage.
A Second Life for Europe’s Flagship Factory
Initially opened in 2023, the Gdansk ESS factory was a cornerstone of Northvolt’s European expansion strategy, designed to reinforce the continent’s battery independence. The facility featured a state-of-the-art R&D center alongside high-volume manufacturing capacity and employed hundreds before the shutdown.
Northvolt’s sudden bankruptcy shocked the European energy tech industry and was viewed as a major blow to EU green tech ambitions. Its failure highlighted financing gaps, overreliance on subsidies, and challenges in scaling capital-intensive battery production.
Lyten’s acquisition breathes new life into this previously stalled facility and positions the U.S. firm as a serious player in the European battery market.
Terms Undisclosed, Completion Expected Q3 2025
While the financial terms of the acquisition were not disclosed, the transaction is expected to close in the third quarter of 2025, pending final regulatory approvals and transfer of facility ownership.
Lyten stated that initial staff onboarding and production system diagnostics are already underway. A core team is expected to be hired locally in Poland to accelerate ramp-up and ensure a smooth re-entry into production.
Implications for Europe’s Energy Storage Future
With the EU’s clean energy transition pushing national grids toward flexibility, decentralized storage solutions, and decarbonization, large-scale energy storage factories like the one in Gdansk are viewed as critical infrastructure.
The European Commission has prioritized battery supply chains in its Green Deal Industrial Plan, yet foreign investments are increasingly stepping in to fill the gap left by regional shortfalls.
Lyten’s acquisition serves as a test case: can an agile, U.S.-based innovator succeed where a heavily-backed European giant stumbled?
Conclusion
As Lyten assumes control of the Gdansk factory and prepares to resume operations, all eyes will be on the company’s ability to deliver on its energy storage commitments, restore confidence in European manufacturing, and help reshape the post-Northvolt landscape.
With existing customer orders in hand, future scalability potential, and a growing European market for grid-tied energy storage, Lyten’s move could signal the start of a new era for battery innovation and production in the region.
