Our Next Energy (ONE), a battery company based in Michigan, said on Wednesday that it has finished a $300 million Series B investment round. This brings the business’s value to $1.2 billion after only three years in business.
Our Next Energy is now among the most valuable privately held battery companies in the country, according to the most recent round, which was led by investors Franklin Templeton and Fifth Wall.
Mujeeb Ijaz, the CEO of ONE, said that the company is giving prototypes of its Aries I battery pack to different companies for testing, and that it plans to start making Aries II lithium iron phosphate cells at a new factory in Van Buren Township, southeast Michigan, next year.
According to Ijaz, the plant’s capacity will start off at about 2 gigawatt-hours and increase to 10 GWh by 2026 and 20 GWh by 2027. In addition to having a prototype line for the company’s dual-chemistry Gemini cells, which ONE plans to start manufacturing in 2026, the facility will eventually create Aries II packs.
Ijaz says that the business is thinking about whether or not it needs a second location and whether or not it should build a second building on the Van Buren site.
ONE is also in talks with possible North American battery raw material suppliers, which might help the business and its clients benefit from the Inflation Reduction Act’s benefits.
Temasek, Coatue, Riverstone Holdings, AI Capital Partners, and Sente Ventures are a few of the investors in the most recent round.
These are the types of investors, according to Ijaz, who are more concerned with the century-level transition to electricity than they are with the state of the economy now.
A $62.5 million convertible note that was previously completed with BMW iVentures, Assembly Ventures, Breakthrough Energy Ventures, Volta Energy Technologies, Flex (NASDAQ:FLEX), and Coatue was included in the Series B financing.