Energy storage technology company Our Next Energy (ONE) announced that it has raised $300 million, as it prepares to launch its first battery cell gigafactory. The Series B equity round values the company at a $1.2 billion post-money valuation.

Launched in 2020, Michigan-based ONE recently announced plans to invest $1.6 billion in ONE Circle, its first battery cell manufacturing plant, anticipated to reach annual capacity of 20 GWh by the end of 2027, equivalent to 200,000 electric vehicle battery packs.

Mujeeb Ijaz, CEO & Founder of ONE, said:

“Closing this fundraising round is an important milestone for ONE as we focus on launching our first LFP cell factory in 2024. 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.”

The financing round was led by investors Fifth Wall and Franklin Templeton. ONE has also received $220 million in grants from the state of Michigan to help fund ONE’s new battery cell factory.

Thus far, the company said it has signed ten customer agreements for its products, totaling 36 GWh over the next five years, with additional preparation plans for phase two factory investments.

Peter Gajdoš, Partner & Co-Head of The Climate Technology Investment Team at Fifth Wall, said:

“Batteries are a fundamental component of the global energy transition economy. ONE is firmly at the forefront of driving this systemic shift. We believe ONE’s next-generation mobility and stationary storage applications are a game changer and are set to transform the $100B+ battery market. We’re thrilled to be a part of the company’s category-defining growth.”