Lyten's Last Measure in Securing its Supply Chain Against Tariffs

Lyten Shifts Gears to Meet Growing Demand and Avoid Industry Pitfalls

In the face of global trade uncertainties, California-based battery manufacturer Lyten is making strategic moves to meet growing customer demands for faster delivery and avoid the pitfalls that have afflicted some of its competitors.

The need for an alternative to existing suppliers, due to the uncertainty caused by tariffs, has driven customers to seek out Lyten's services. The company is striving to avoid the same fate as Northvolt, which filed for bankruptcy in November 2022, by being more agile and responsive to market conditions.

Lyten has brought its last major supply chain component to the United States, and its new M&A team is always on the lookout for expansion opportunities. The team must be able to move fast to seize opportunities as they arise.

To ensure it has the necessary funding, resources, and relationships to seize opportunities quickly, Lyten has made adjustments to its strategy. The company is sourcing its lithium metal feedstock from the eastern U.S. and is producing its proprietary lithium alloys in Pennsylvania.

Lyten's manufacturing strategy is based on brownfield development, converting shuttered lithium-ion factories into lithium-sulfur factories. In late August, Lyten took over the facility lease and bought out all the equipment from Cuberg's San Leandro production facility. Sila Nanotechnologies has since signed a contract to purchase the factory space and equipment, enabling it to start shipping batteries in 2026.

The battery produced by Lyten is significantly less dependent on a Chinese supply chain and is made from fewer ingredients, resulting in a lighter, higher energy density battery. The biggest demand growth for Lyten's batteries is coming from stationary storage developers.

The uncertainty caused by tariffs has made the speed of delivery a critical concern for Lyten's customers. In response, Lyten is adopting a "last-minute" approach to manufacturing, building capacity only once orders are in hand. This agile approach allows Lyten to respond quickly to customer needs and avoid the delays and scrapped plans that have plagued some of its competitors.

Lyten is the only battery manufacturer in the U.S. shielded from tariffs and critical mineral risk. This unique positioning, coupled with its agile manufacturing approach, makes Lyten a strong contender in the battery market, poised to capitalize on the growing demand for faster, more reliable delivery. The company expects to start shipping batteries out of its new facility in 2026.