Our Next Energy details plans for Michigan battery plant
The battery startup Our Next Energy (ONE), backed by BMW, has confirmed Michigan as the location for its first US facility, following earlier news on state funding. Now ONE adds the missing details.
The company has selected the Van Buren Township in Michigan, USA, as was previously known from a funding allocation of $215 million to Our Next Energy. Now ONE confirmed the total investment of $1.6 billion in the plant called ONE Circle. Production is scheduled to start in 2024. From the end of 2027, ONE expects to operate at a capacity of 20 GWh LFP cells annually.
ONE first mentioned plans for a US plant in March without confirming a location. However, Michigan does not come as a surprise since the company is already based in Novi, Michigan. The Van Buren Township is 33 miles south of Novi in the greater Detroit area. Still, ONE says it conducted a “competitive site selection process,” evaluating twelve states and a Canadian province but ultimately selected Michigan because of the commitment of the State and utility partners.
Specifically, the company has signed a multi-year lease for a building of just over 60,000 square metres from the owner Ashley Capital. There, 2,112 employees will produce the battery cells and the necessary cathode materials. The state supports the investment with a total of $215 million.
Michigan State announced $400 million in incentives earlier this week to help companies build battery factories worth $4 billion in the state. Preliminary funding approvals have been granted to ONE and Volkswagen partner Gotion High Tech.
The funding comes as part of the ‘Strategic Outreach and Attraction Reserve’ fund passed last year with a $1.5 billion budget. Previous beneficiaries included General Motors and Ford. GM is building a factory in Lansing and also operates two vehicle plants in Michigan. The state has also supported LG ES in its $1.7 billion investment to expand battery manufacturing in the state that’s home to Motown.
“We are in global competition to make sure that Michigan stays on the cutting edge of auto manufacturing,” Michigan Gov. Gretchen Whitmer said Wednesday in an interview with The Associated Press.
“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 today. “We applaud the leadership of Governor 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.”
ONE says it will offer an average annual salary of $67,456, benefits and a comprehensive training program. Over 20 years, ONE Circle is expected to generate $967 million in state taxes and more than $13 billion in new personal income.
Our Next Energy is reportedly working on an “anode-free” battery, as it removes the anode from the production process, not the battery.
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