Northvolt Sold Cuberg’s Assets but Failed to Deliver

San Jose-based battery manufacturer Lyten has filed a claim in Northvolt's Chapter 11 proceedings, alleging that the Swedish battery giant sold assets from its former U.S. subsidiary, Cuberg, but failed to deliver all agreed-upon equipment. Lyten, which also took over the facility lease, contends that Northvolt broke the terms of their agreement.

When Northvolt filed for Chapter 11 bankruptcy in the United States, it was only three months after Cuberg’s operations in San Leandro were shut down amid Northvolt’s financial struggles. Lyten stepped in after the first of three planned auctions, purchasing Cuberg’s remaining equipment and taking over the facility’s lease.

While the purchase price has not been disclosed, Lyten claims it has incurred $1.08 million in damages due to Northvolt’s failure to deliver all the assets specified in their agreement. According to court filings, Lyten withheld a $1 million holdback—part of the purchase price—pending resolution of the dispute. The company alleges that several pieces of equipment and inventory listed in the purchase agreement were not delivered—or were not at the facility—as required.

The final hearing in Northvolt’s Chapter 11 case is scheduled for Dec. 17 in Houston. The court will address claims from Lyten and others at this hearing.

Northvolt, co-founded by Tesla Palo Alto alumnus Peter Carlsson, raised substantial capital to position itself as a leader in Europe’s battery industry. However, challenges in securing additional funding forced the company into Chapter 11 bankruptcy, leaving questions about the sustainability of its ambitious plans.