ONE closes funding round with $300 million
US battery startup Our Next Energy (ONE), backed by BMW, among others, has closed a $300 million funding round. The Series B funding round resulted in a company value of over $1 billion.
The Series B round, led by Fifth Wall and Franklin Templeton, also saw participation from existing investors from the Series A round. ONE will receive an additional $220 million in grants from the state of Michigan for its planned LFP battery cell factory there. It is planned to operate from the end of 2027 with an annual capacity of 20 GWh. But ONE is already planning for expansion: the company has already signed ten contracts with customers totalling 36 GWh over the next five years.
“Closing this fundraising round is an important milestone for ONE as we focus on launching our first LFP cell factory in 2024,” said Mujeeb Ijaz, CEO & Founder of ONE. “We are transitioning from a startup funded by venture capital to a manufacturer fueled by growth capital. That’s important in this environment where urgent demand for US-based cell manufacturing is on the rise, supported by the Inflation Reduction Act, in a true public-private partnership.”
Our Next Energy has steadily been expanding into the battery market, having signed a supply agreement in the area of commercial vehicles with Bollinger Motors last November, in addition to having signed a partnership with Motive for LFP batteries for commercial vehicles in March of the same year. ONE also presented a new battery cell with 240 Ah in September. At the time, Our Next Energy stated that cell-level costs are expected to be reduced to $50 per kilowatt-hour.
ONE had first gained our attention when BMW had invested in the burgeoning battery startup in 2021, before the company then presented an upgraded Model S with a range up to 1,200 km, using one of ONE’s battery prototypes. Only two months later, ONE then announced plans for their first battery factory in the USA.