Lyten, a Silicon Valley battery startup, today announced the acquisition of the manufacturing assets of Northvolt, a Swedish battery maker facing a cash flow crisis.

As part of the deal, Northvolt is selling manufacturing equipment that the company inherited during its 2021 acquisition. Cuberganother battery start. Lyten will also assume the lease of the former Cuberg manufacturing facility in San Leandro, California. Lyten will invest $20 million next year to expand its facilities in San Leandro and its existing operations in San Jose.

Neither Lyten nor Northvolt immediately responded to questions about the financial terms of the deal.

Unlike many other battery manufacturers, Lyten does not rely on nickel, cobalt, manganese or even iron for its cathode materials. Instead, it uses cheap and abundant sulfur mixed with a graphene matrix. On the anode side, it does not use graphite, a material which faces export restrictions from China. The company says the combination results in cells that have greater energy density than nickel-manganese-cobalt flavors, but are cheaper to produce than low-cost lithium-iron-phosphate.

Northvolt has been struggling lately. The company struggled to increase its production of lithium-ion batteries and missed the delivery of a large order from BMW, prompting the carmaker to cancel a 2 billion euro contract.

To conserve cash, the company announced in August that it shutter research and development at the Cuberg site, leading to the dismissal of nearly 200 employees. Then in September he said it was layoff of 1,600 additional employeesapproximately 20% of its workforce, and that it had interrupted two factory expansion projects.

It’s unclear whether this cost reduction and agreement with Lyten will be enough to help Northvolt get through the coming year. Last week, Bloomberg reported that Northvolt needs to raise nearly a billion dollars to give it some breathing room; the company’s operations reportedly spend about $100 million per month.

While Northvolt is on the skids, Lyten seems ascendant.

The San Jose-based startup plans to break ground next year on a factory in Nevada with a planned capacity of 10 gigawatt hours. Once completed, the billion-dollar facility will produce lithium-sulfur batteries for use in micromobility vehicles like scooters and e-bikes, as well as defense and space applications like drones and satellites. The company expects it to go live in 2027.

Lyten’s purchase of Northvolt’s Cuberg assets gives it the equipment and space to produce up to 200 megawatt hours of lithium-sulfur batteries in the Bay Area. That should give the company some revenue while it prepares its larger plant in Nevada.

Lyten has raised $476 million to date at a valuation of $1.17 billion, according to PitchBook, including a $200 million funding round which closed last year.