Our Next Energy, Michigan Battery Firm Raises $300 Million

• Our Next Energy Inc (ONE), a Michigan-based energy storage technology company, has raised $300 million in a Series B round, valuing the company at $1.2 billion post-money. This capital will fund ONE's first lithium iron phosphate (LFP) battery cell factory, and marks a shift from venture capital-funded start-up to a manufacturer supported by growth capital.

What happened?

Our Next Energy Inc (ONE), a Michigan-based energy storage technology company, has raised $300 million in a Series B round, valuing the company at $1.2 billion post-money. This round was led by venture capital firm Fifth Wall and investment manager Franklin Templeton, and was supported by ONE's Series A investors and new growth equity investors Temasek, Riverstone Holdings and Coatue, as well as two new venture equity investors and two undisclosed strategic investors. Additionally, ONE closed a $62.5-million convertible note in January 2022 that was led by BMW i Ventures and joined by the Series A investors plus Coatue. The company has signed 10 customer agreements totaling 36 GWh over the next five years. (Source: PV Magazine)

Why does it matter?

This funding round marks a shift from venture capital-funded start-up to a manufacturer supported by growth capital. The capital will fund ONE's first lithium iron phosphate (LFP) battery cell factory, called ONE Circle, which is located in Van Buren Township in Michigan. The project completed its exterior construction in December 2022, and the company aims to launch the factory in 2024. This is an important step in the development of the sustainable energy industry, as it will provide a US-based source of battery cells for electric vehicles (EVs). This is particularly important in light of the Inflation Reduction Act, which has increased the demand for US-based cell manufacturing.

What's next?

ONE's Series A capital raise in 2021 was led by Breakthrough Energy Ventures and involved Assembly Ventures, BMW i Ventures, Flex (NASDAQ:FLEX) and Volta Energy Technologies. The company is now working to launch its first LFP battery cell factory in 2024, and is looking to expand its customer base with additional agreements in the coming years. Additionally, ONE is continuing to seek out strategic investors, as well as venture and growth equity investors, to support its growth and development of sustainable energy technology.