EXECUTIVE SUMMARY

Lyten Inc., a California-based developer of advanced battery technologies, has signed an exclusive Memorandum of Understanding (MoU) to advance the acquisition of the Northvolt Drei battery manufacturing assets located near Heide in Schleswig-Holstein, Germany. The agreement has been signed with Germany's state-owned promotional bank KfW, Northvolt Drei Project GmbH and its shareholder LG Batterie GmbH, marking the next stage in Lyten's planned expansion of its European manufacturing footprint. 

Northvolt Drei was originally developed by Northvolt AB as a large-scale battery gigafactory before construction activities were halted. The project site spans approximately 110 hectares and has already completed significant groundwork, together with the installation of key power and utility infrastructure. These completed works provide Lyten with an established industrial platform that can support future battery manufacturing activities while reducing development timelines compared with a greenfield project. 

As part of the agreement, Lyten will provide funding to support the maintenance and preservation of the site and cover employee-related expenses after signing the MoU and an exclusivity agreement with the State of Schleswig-Holstein. The parties stated that negotiations have progressed positively over recent months with support from both the Government of Schleswig-Holstein and the German Federal Government. They are now working toward executing a definitive sales agreement during the third quarter of 2026, subject to customary regulatory approvals and closing conditions. 

According to Lyten, the Heide facility is intended to become a long-term manufacturing hub serving Europe's growing demand for battery technologies. The company highlighted increasing infrastructure investment across the region, driven by electrification, artificial intelligence data centres, defence applications and expanding electricity demand. The location also benefits from access to renewable energy resources and an experienced industrial workforce, supporting Lyten's long-term manufacturing strategy in Germany. 

The proposed acquisition further expands Lyten's growing portfolio of former Northvolt assets across Europe. During the past year, the company acquired Northvolt Ett in Skellefteå, Sweden, Northvolt Dwa in Gdańsk, Poland, and Northvolt Labs in Västerås, Sweden. Through these acquisitions, Lyten continues building a network of battery manufacturing, battery energy storage system production and research facilities aimed at strengthening Europe's battery supply chain and supporting future industrial development. Financial terms of the proposed transaction have not been disclosed.