ONE Announces Battery Gigafactory in Michigan


Our Next Energy (ONE) announced a $1.6 billion investment in a new battery cell manufacturing plant in Van Buren Township, MI.

The location was chosen after a competitive site selection process, evaluating 12 states and a Canadian province. Michigan is considered the best for the gigafactory and also will provide a $200 million state grant.

The company has signed a multi-year lease agreement with Ashley Capital for a 660,000-square foot building in Van Buren Township, which will be converted into a battery factory.

The battery plant will be called ONE Circle and is envisioned to produce lithium-ion battery cells and battery packs for passenger and commercial vehicles. According to ONE, the campus will include also raw material refinement and cathode materials production.

Production is expected to start in the second half of 2024, reaching its full annual capacity of 20 GWh by the end of 2027, equivalent to about 200,000 100 kWh EV battery packs.

ONE is very precise in terms of how many jobs it will create: 2,112, adding it will offer "an average annual salary of $67,456 (38% above the ALICE wage threshold), as well as industry-leading benefits and a comprehensive training program." 

"ONE is thrilled to select Michigan for our first cell factory, due to the state's unique combination of battery talent, proximity to material supply and access to low-cost energy," said Mujeeb Ijaz, founder and CEO of ONE. "We applaud the leadership of Gov. Gretchen Whitmer and the MEDC team, led by Quentin Messer. In addition, our collaboration and new strategic partnerships with DTE Energy, Van Buren Township and Wayne County have helped ONE build a strong foundation for clean tech manufacturing in Michigan."

According to Automotive News, ONE has already received orders from automakers for its batteries ahead of production start, but the company declined to name them. Passenger car manufacturers are interested in battery cells, while commercial heavy truck manufacturers would like to buy entire systems.

Ijaz said by the time the ONE Circle reaches its full capacity, the company might move to another facility; in other words, there is another battery gigafactory in the pipeline.

ONE announced its LFP Aries battery systems will be offered beginning in 2023. The company attracted multiple investors, including BMW i Ventures, and is also working on Gemini, a hybrid battery pack---two different battery cell chemistries. 

Besides LFP, the company develops anode-free lithium-ion battery cell chemistry with a very high volumetric energy density of 1,007 Wh/l. As we understand, those two battery chemistries would be used together in one battery pack.

Later this year, ONE will integrate the Gemini battery system in a BMW iX prototype, with a goal to achieve a range of 600 miles. In December 2021, a Tesla Model S retrofitted with ONE’s proof-of-concept 203.7 kWh battery was able to cover 752 miles on a single charge at a constant speed of 55 mph.

We thank InsideEVs for reprint permission.

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