Lyten to buy Norway's bankrupt Morrow Batteries in European push
What's the deal? US lithium-sulphur battery company Lyten is moving to acquire Morrow BatteriesDealroom has a profile for this one. Try Dealroom →, the bankrupt Norwegian startup that had aimed to manufacture lithium iron phosphate (LFP) cells for energy storage systems. The bankruptcy estates of Morrow's three main entities signed an agreement with Lyten and state agency Innovation NorwayDealroom has a profile for this one. Try Dealroom → on August 21 for an asset sale of the business as a going concern.
The terms: The memorandum of understanding names Innovation Norway as secured creditor and Lyten as buyer, following a competitive process in which Lyten emerged as preferred bidder. Lyten reportedly paid NOK 8 million (US$850,000) for exclusivity. Morrow's main physical asset is its LFP gigafactory in Arendal, Norway.
Why now? Morrow filed for bankruptcy in May, joining a growing list of failed European battery startups. Court-appointed administrator Christian Bohne said the decision was made "with the objective of preserving values" and pursuing a going-concern solution.
What's the endgame? Lyten is evaluating the Morrow site as a "Lyten Industrial Hub," combining battery manufacturing with upstream and downstream activities across the energy storage value chain. CEO Dan Cook said the strategy could create a multi-decade asset attracting "high-quality capital investment and sustained jobs."
On jobs: The process aims to secure hundreds of Morrow jobs long-term and has already preserved 70 through the autumn. Bohne noted that employees, though severely affected by the bankruptcy, provided commitment "instrumental in enabling the agreement."
The bigger footprint: The deal extends Lyten's European expansion after it acquired most assets of bankrupt Swedish startup Northvolt last year. That began with Northvolt's Poland battery storage factory in July 2025, followed by its Sweden and Germany gigafactories plus R&D and intellectual property in August.
What could go wrong? Lyten is buying into the same market that sank Morrow and Northvolt. The company sought US$650 million in financing from the Export-Import Bank of the United StatesDealroom has a profile for this one. Try Dealroom → before its Northvolt purchase, underscoring the capital demands of scaling battery manufacturing.
The signal: A US challenger is consolidating Europe's failed battery ambitions on the cheap, snapping up gigafactories built with public money after homegrown players collapsed. The pattern points to a shakeout that is reshaping who controls the continent's battery infrastructure.
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Image credit: Generated with Gemini
