Germany accelerates Northvolt asset sale to Lyten

According to a report by Der Spiegel, the German Federal Ministry for Economic Affairs has quietly taken control of Northvolt Drei Project GmbH, the German project company, without making the move public. The news magazine reports that, since then, LG Batterie GmbH and another intermediary company have held all shares in Northvolt Drei Project GmbH in trust on behalf of the German government.

According to the report, the move followed a decision by a local court in Hamburg concerning the remaining subsidies of up to €264 million, which the German government sought to secure.

The Ministry now aims to offload the project company—or its remaining assets—to Lyten as quickly as possible. In August 2025, the US battery cell manufacturer announced its intention to take over the business of the insolvent Northvolt entity in Sweden, as well as the non-insolvent Northvolt project in Heide, Schleswig-Holstein—the latter being the current focus.

As previously reported, Lyten recently agreed an acquisition price of around €60 million with the state-owned development bank KfW, the German federal government and the state of Schleswig-Holstein. The agreement is expected to transfer the former Northvolt site in Heide, together with the technical equipment already procured for the project, to Lyten. However, the facility is still a long way from becoming an operational battery cell plant. In its current state, the project essentially consists of a developed industrial site rather than a functioning factory.

The transaction is now expected to move ahead quickly. During a special session of the finance committee of the Schleswig-Holstein state parliament on 30 June, lawmakers are expected to approve the sale to Lyten, as the state is among the creditors through a convertible bond. According to Der Spiegel, Lyten is due to take on its first responsibilities for the German project company from 1 July, including the payment of employee salaries.

However, the sale to Lyten also raises questions, as the reported purchase price of €60 million is well below the costs incurred to acquire and develop the assets. The factory site alone reportedly cost around €50 million, while construction work accounted for a further €260 million. In addition, the project company purchased a battery cell production machine for €51 million.

At the same time, the German federal government and the state of Schleswig-Holstein are reportedly covering a double-digit million-euro amount to wind up the project company, including severance payments and procedural costs.

Overall, the gap exceeds €300 million, a cost that would ultimately fall on the German federal government and the state of Schleswig-Holstein. As Der Spiegel notes, this raises the question of whether the transaction amounts to indirect support for Lyten. The German Federal Ministry for Economic Affairs declined to comment on the issue when approached by the magazine.

spiegel.de (in German)