U.S. Battery Firms Expand Overseas to Meet Growing Demand

U.S. battery manufacturers are shifting focus to international markets in response to trade uncertainties and tariffs. As clean energy initiatives experience less support from the U.S. administration, companies like Lyten and Group14 Technologies are establishing production sites in regions where demand for green technology and renewable energy is stronger. This trend has gained momentum recently with significant acquisitions and investments aimed at bolstering their global presence.

Lyten, a California-based battery company, announced in early August 2023 that it would acquire all remaining assets of the bankrupt European battery firm Northvolt in Sweden and Germany. Northvolt, once seen as a promising contender for a domestic giga-scale battery manufacturer in Europe, filed for bankruptcy in March 2023. The company faced challenges such as rising capital costs, geopolitical instability, and supply chain disruptions. With this acquisition, Lyten is betting on its ability to leverage Northvolt’s infrastructure and talent to meet escalating demand for batteries in Europe and North America.

The total value of Lyten’s acquisition is approximately $5 billion, which includes 16 GWh of existing battery manufacturing capacity and more than 15 GWh under construction. This acquisition also positions Lyten to scale its operations to more than 100 GWh, alongside securing the largest and most advanced battery research and development center in Västerås, Sweden.

“The demand for European and North American made batteries is only growing,” stated Lars Herlitz, Lyten’s chairman and co-founder. Currently, Lyten manufactures lithium-sulfur batteries in Silicon Valley, targeting rapidly expanding markets such as drones and defense. Following the acquisition, Lyten plans to restart operations in Skellefteå and Västerås, while working with Northvolt and the German government to establish a battery manufacturing facility near Heide in Schleswig-Holstein, which will have an initial capacity of 15 GWh.

Lyten aims to rehire a significant number of previously laid-off workers, with plans to advance its collaboration with Northvolt’s former anchor customers. “The acquisition of Northvolt’s assets brings the facilities and Swedish talent to accelerate this mission by years, just at the moment when demand for Lyten lithium-sulfur batteries is growing exponentially,” noted Dan Cook, Lyten’s CEO and co-founder.

While Lyten is making strides in Europe, Group14 Technologies is focusing on growth in Asia, the world’s leading battery manufacturing market. This week, the Washington State-based company closed a $463 million funding round led by SK, Inc.. Additionally, Group14 secured full ownership of its joint venture with SK, which operates a factory in Sangju, South Korea that produces active materials for batteries at an electric vehicle scale.

Group14 Technologies, backed by investors including Porsche Investments and Microsoft Climate Innovation Fund, is also expanding its silicon battery infrastructure in Europe with a new silane gas factory in Germany. This facility will supply a critical precursor for next-generation energy storage technologies.

“Strengthening regional supply networks and shifting to next-gen battery chemistries like silicon that reduce material dependency is more than just risk management,” said Rick Luebbe, CEO and co-founder of Group14 Technologies. In reference to the recent developments in South Korea, Luebbe emphasized the importance of safeguarding customers against global trade uncertainties.

As U.S. battery firms adapt to an evolving market landscape, their overseas expansions highlight a strategic pivot towards regions that prioritize green technology. This shift not only reflects the changing dynamics of global energy production but also underscores the increasing importance of regional supply chains in the battery manufacturing sector.