Our Next Energy raises $300m as a LFP battery unicorn
US battery startup Our Next Energy (ONE) has closed a $300m funding round that values the company at over $1.2bn.
The $300 million of equity financing is joined with $220 million in grants from the state of Michigan for a total of more than $500 million to fund ONE’s battery cell gigafactory making lithium iron phosphate (LFP) cells and battery packs. These battery packs are more often used in high endurance applications such as electric trucks and off road construction equipment.
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The company has signed ten customer agreements for its products for a total of 36 GWh over the next five years and is accelerating its phase two factory investments ahead of schedule.
The company is building three types of battery pack.
The 79kWh Aries LFP pack has an energy density of 287 Wh/l and is entering production this year. The 103kWh Aries II LFP batteries have an energy density of 243 Wh/l.
The Gemini battery pairs anode-free cells for high energy density at 1007 Wh/L with 441 Wh/L LFP cells for power and durability.
The Series B round was led by Fifth Wall and Franklin Templeton, and joined by ONE’s Series A investors and new growth equity investors Temasek, Riverstone Holdings and Coatue. Two undisclosed strategic investors also participated in this round, including a manufacturer of EV technology systems and a renewable energy provider who will buy the cells that ONE makes.
Two new venture equity investors, AI Capital Partners and Sente Ventures, also participated in the round.
“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 U.S. based cell manufacturing is on the rise, supported by the Inflation Reduction Act, in a true public-private partnership.”
Back in January 2022 ONE closed a $62.5 million convertible note as part of the Series B. That funding was led by BMW i Ventures and joined by Assembly Ventures, Breakthrough Energy Ventures, Coatue, Flex and energy storage firm Volta Energy Technologies. It raised $25m in its Series A round in 2021 for a total backing to date of $390m according to Crunchbase.
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