Lyten is in the spotlight of European battery policy. The US company wanted to take over Northvolt’s gigafactory in Heide, but new setbacks are shaking confidence. While Quebec declares bankruptcy at its subsidiary there, Lyten is attempting to turn around battery cell production in Europe with former Northvolt managers. (capital: 09.09.25)
Quebec insolvency as a warning signal
A court in Canada has declared Northvolt’s Quebec subsidiary insolvent. The province is demanding millions in repayment because Lyten failed to present a viable plan. Economic Affairs Minister Christine Fréchette openly called the project “unsuccessful.” This clear signal is causing unrest in Schleswig-Holstein and demonstrates how high the bar is set for international investors.
The failed project weakens Canada as a strategic location and simultaneously increases pressure on the planned plant in Heide. Lyten must now prove that the takeover of the German project rests on a solid foundation.
Return of old managers strengthens Lyten
New leadership is forming in Europe. Lyten is bringing back experienced talent from Northvolt. Matthias Arleth is taking over as CEO in Sweden, while other former managers are managing central plants in Skellefteå and Västerås. This personnel policy creates hope for a fresh start.
The planned battery factory in Heide with a capacity of 15 gigawatt hours remains a core goal. Battery cells are considered a key technology for Europe’s industry, but without trust, the prestige project risks losing credibility.
Schleswig-Holstein calls for clarity
In Kiel, pressure is growing on the state government. FDP politician Bernd Buchholz is demanding a much more thorough review. Quebec is not acting lightly, therefore, full transparency is needed. The state parliament expects clear answers on the status of the takeover next week.
Politicians must weigh the pros and cons: future technology on the one hand, high risk on the other. Without secured financing, the battery factory in Heide remains an uncertain promise.
Federal level remains skeptical
Federal Minister for Economic Affairs Katherina Reiche distances herself. She would have liked to close the Lyten chapter, but the setback in Quebec makes this impossible. For Berlin, this means even more control and less premature trust.
Europe needs new battery cell capacities, but projects like Heide must not be staggered again. Only with a clear strategy can Lyten prove that it is not part of, but rather the solution to, the Northvolt drama.