Our Next Energy Inc. (ONE), a frontrunner in energy storage technology, has commenced production of its domestically produced lithium iron phosphate (LFP) battery cells at the ONE Circle battery factory in Van Buren Township, Michigan.
Why It Matters
This development signifies a pivotal move in establishing a U.S. LFP battery industry, backed by a North American supply chain. As articulated by Mujeeb Ijaz, CEO & founder of ONE, this venture will reduce the U.S. dependence on nickel and cobalt. By focusing on attributes like range, safety, and a domestic supply chain, ONE aims to meet the pressing demands of automakers.
Key Points
- ONE’s production adheres to anticipated IRA compliance, targeting commercial trucks, automotive sectors, and utility grid segments.
- Deliveries for customer validation on performance and durability are slated for the first half of 2024.
- This milestone comes a year post the State of Michigan’s announcement of a $200 million grant to ONE for the nation’s most expansive LFP battery factory.
- As affirmed by Governor Gretchen Whitmer, this initiative aligns with Michigan’s vision of pioneering advanced manufacturing, further amplifying the state’s role in the energy transformation.
- Last year, ONE committed to a $1.6 billion investment in ONE Circle, which received a significant boost from the State of Michigan’s $200 million grant. By 2027’s end, the factory’s full operational capacity is projected to produce cells equivalent to 200,000 electric vehicle battery packs annually.
- The Michigan Economic Development Corporation expressed gratitude and optimism, emphasizing the state’s leadership in clean energy solutions and advanced manufacturing innovation.
Bottom Line
ONE’s decision to embark on LFP battery cell production in Michigan underscores the region’s rising prominence in the advanced manufacturing and clean energy sectors. With support from state grants and a vision aligned with the national agenda, ONE is poised to play a pivotal role in the evolution of the U.S. battery industry.
