Our Next Energy (ONE), a manufacturer of EV batteries, announced that it raised $300 million in its most recent round of funding, valuing the Novi, Michigan-based business at over $1 billion.
The most recent investment, along with economic incentives from the state of Michigan, provides the business with the funding it needs to start production at its first battery cell plant in Van Buren township by the end of the next year.
At the facility, ONE will build its lithium iron phosphate, or LFP, battery pack products. ONE is ordering the necessary furnishings. According to CEO and founder Mujeeb Ijaz, it will receive its first supply in July in order to get ready to start producing next year. As the market for electric vehicle batteries develops and ONE adds more clients, the plant will be expanded out in stages.
ONE currently has 205 employees, most of whom are situated in Michigan. Ijaz anticipates having just over 300 full-time salaried staff and about 100 hourly workers by the end of this year.
“As we try to raise the next round of funding, it’ll be for higher implementation and factory expansion to better line with the market pull that we have, ” Ijaz said. “Since the Inflation Reduction Act has improved both customer activity and anticipated manufacturing output, we are already beginning to consider phase two of the plan to add more equipment. However, with the help of this investment, we will be able to produce both certain pack products and that cell factory.”
Additionally, the most recent funding round, which included venture capital firms and growth equity investors, was a turning point for ONE closing with a $62.5 million convertible note.
The $300 million in equity funding will support the Van Buren plant, identified as ONE Circle, representing an approximately $1.6 billion investment, along with the $220 million in grants the state provided to ONE last year.
On the other hand, Piston Automotive Group is currently constructing ONE’s Aries battery packs. The Aries battery pack will go into production by ONE Circle early in the following year, followed by the Gemini battery pack. As production ramps up, ONE Circle anticipates adding more than 2,100 jobs in the upcoming years.
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