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Our Next Energy raises $300M Series B for batteries

Illustration: Aïda Amer/Axios

Our Next Energy, a battery developer founded by Apple's former head of energy storage, closed a $300 million Series B at a $1.2 billion post-money valuation.

Why it matters: Our Next Energy is manufacturing longer-range batteries in the U.S. that don't depend on problematic commodities like cobalt and nickel.

Details: Fifth Wall and Franklin Templeton led the all-equity round.

  • Temasek, Riverstone Holdings, Coatue, AI Capital Partners and Sente Ventures joined as new investors.
  • Richard Piliero, a managing director at Franklin Templeton, will join ONE's board of directors.

Of note: The Series B includes a $62.5 million convertible note that ONE closed in January 2022.

  • The note was led by BMW i Ventures. Assembly Ventures, Breakthrough Energy Ventures, Coatue, Flex, and Volta Energy Technologies joined.
  • The state of Michigan, where the company is based, also provided $220 million in grants, bringing the total capital raised past $500 million.

What's happening: ONE began delivering its Aries battery this year for commercial vehicles, namely delivery vans.

  • It ultimately aims to deliver about 600 miles of range with a lithium-iron-phosphate battery that requires neither nickel nor cobalt, the company says.
  • Cobalt is intertwined with child labor. Nickel mining is associated with deforestation, and smelting it causes major greenhouse gas emissions.

What's next: The company's planned gigafactory in Van Buren Township, Michigan, is expected to be complete next year.

  • It's aiming to deliver the next iteration of batteries, called Gemini, in 2026.
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