Lyten to Acquire Cuberg’s Facility to Expand Lithium-Sulfur Battery Production
Battery manufacturer Lyten is set to acquire Cuberg's lithium-metal battery manufacturing facility in San Leandro, California, with plans to invest up to $20 million to convert the facility for lithium-sulfur battery production. The investment will also include purchasing additional equipment and expanding production capacity to 200 megawatt hours per year, according to a company press release dated November 13.
The acquisition, expected to be completed by early December, aligns with Lyten's strategic goal of boosting U.S. lithium-sulfur battery manufacturing. The terms of the deal were not disclosed, according to Lyten Chief Sustainability Officer Keith Norman.
The expansion supports Lyten's increasing customer demand for lithium-sulfur batteries in applications such as defense, drones, micromobility, and other energy storage sectors. It also helps the Department of Defense meet domestic battery sourcing requirements under the National Defense Authorization Act for 2024. Lyten received a multi-million dollar award from the DOD's National Security Innovation Capital program in 2022 to expand its battery prototype manufacturing capabilities.
The acquisition will bring more than 100 manufacturing jobs to the Bay Area. The San Leandro facility, which includes manufacturing, office, and warehouse space, is located just 30 minutes from Lyten's San Jose headquarters. This expansion follows Cuberg's parent company, Sweden-based Northvolt, relocating its research and development operations to Sweden and subsequently filing for Chapter 11 bankruptcy amid production challenges and the loss of key customers.
Lyten has also announced plans to build a 10 GWh lithium-sulfur gigafactory in Nevada, with the first phase expected to be operational by 2027. The company aims to scale up lithium-sulfur production further and is exploring additional acquisitions of lithium-ion assets. Lyten's investors include companies like Stellantis, FedEx, and Honeywell.
Lyten's lithium-sulfur batteries are touted as a cost-effective alternative to lithium-ion batteries, featuring a higher energy density, reduced reliance on scarce minerals, and compliance with NDAA requirements. CEO Dan Cook stated that the company has seen a nine-fold increase in its customer pipeline since the beginning of 2024, and they are now working to allocate production capacity from both San Leandro and their upcoming Nevada gigafactory.
