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ONE Invests $1.6 Billion in a New, 20 GWh Michigan Cell Factory

The world is changing at a rapid pace. Since many car manufacturers are racing against each other to develop the latest and greatest electric vehicles, there’s an obvious, ever-increasing demand for new batteries, along with a growing trend of moving away from nickel and cobalt.
ONE Aries II battery production 6 photos
ONE Aries battery productionONE Aries battery productionONE Aries battery productionONE Circle factoryONE Gemini battery pack
Our Next Energy (ONE) has announced a $1.6 billion investment in a new gigafactory that will start producing Lithium Iron Phosphate (Lithium Ferro-Phosphate / LFP) cells in 2024. The company’s investment is also supported by a $215 million state grant.

Located in Van Buren Township, Michigan, the new factory should reach an annual capacity of 20 GWh by the end of 2027 – or about 200,000 electric vehicle battery packs annually – while also reducing carbon emissions by 45% until 2028. But why here?

It all comes down to “the commitment of the State and utility partners to making Michigan a key part of the electric vehicle future,” according to the company. Moreover, Mujeeb Ijaz, founder and CEO of ONE, pointed out the state’s “unique combination of battery talent, proximity to material supply and access to low-cost energy.

Given they’re safer and have a longer lifespan than NCM batteries, LFP cells should provide a better alternative – at least until the next best thing enters the scene. Add to that the fact that cobalt is a pretty rare element, and you can see why car manufacturers (including Tesla) are switching to LFP cells.

On that note, we can see how ONE is simply addressing the growing market demand. The company is teaming up with DTE Energy, 6K Energy, and a leading North American battery recycler to minimize environmental impact, turning Michigan into “the powerhouse of automotive.

There’s more to it – the new factory will also act as a giant battery, stabilizing the power grid and providing renewable energy to the local community. Starting January 2023, the ONE Circle facility is set to receive new equipment, with cell manufacturing scheduled for 2024.

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