Our Next Energy

Our Next Energy (ONE) is a Michigan-based energy storage company that develops lithium iron phosphate (LFP) long-duration energy storage systems and EV batteries. These, unlike lithium-ion batteries, use little to no nickel or cobalt.

In February 2023, the company reported that it will be developing and manufacturing its LFP utility-scale battery system known as “Aries Grid.” This storage system will be provided in 2, 3, and 6 MWh modular units, which allow for system customization. It uses LFP cathode chemistry, which is expected to be more durable and has double the lifetime energy throughput of nickel, cobalt, and manganese (NCM) chemistries that the majority of commercially available energy storage systems are composed of. These are to be manufactured at the company’s factory in Michigan.

ONE is also developing three types of LFP batteries: Aries I, Aries II, and Gemini. Aries I is a 79 kWh battery that provides a range of 150 miles on a single charge. The battery is capable of running 3,000 cycles with daily charging of up to 100% without degradation. It is currently being produced at ONE’s Michigan factory. According to the company, the scalable architecture of the battery allows it to fit into a range of applications including trucks, boats, homes, and grids. Both Aries II, and Gemini are used in EV applications.

In October 2022, ONE invested USD 1.6 billion to develop a new battery cell manufacturing plant known as “ONE Circle,” in Michigan. The facility was expected to operate at its full annual capacity of 20 GWh by the end of 2027. The company intended to manufacture enough cells to produce 240,000 Aries II and Gemini packs annually from 2023 onwards.

Key customers and partnerships

In June 2022, ONE partnered with BMW to incorporate Gemini into a BMW iX all-electric sports activity vehicle.

In June 2023, ONE signed a joint development agreement (JDA) with Nano One Materials, a company producing lithium-ion battery cathode materials. The two companies agreed to collaborate on the validation, qualification, and production of a North American supply of LFP cathode active materials (CAM). the CAM is to be produced at Nano One’s facilities in Canada, Québec and will be potentially used for the production of LFP cells in Our Next Energy’s Aries and Gemini batteries.

Funding and financials

In February 2023, ONE raised USD 300 million in a Series B funding round led by Fifth Wall and Franklin Templeton. This brings the company's total funding to USD 390 million, setting the company’s post-money valuation at USD 1.2 billion. The company was to use the funds to launch ONE Circle LFP cell factory, which was already receiving USD 200 million in grants from the state of Michigan.