Detroit Battery Startup ONE Raises $300M, Reaches Unicorn Status

There's a new unicorn in town. Our Next Energy (ONE) has announced today that it closed a $300 million Series B capital raise, bringing the company's valuation up to $1.2 billion.

Image source: ONE 

The round was led by Fifth Wall and Franklin Templeton, and joined by ONE’s Series A investors and new growth equity investors Temasek, Riverstone Holdings and Coatue. This marks a new fundraising transition from venture to growth equity investors. A manufacturer of EV technology solutions and renewable energy provider also participated as undisclosed strategic investors. AI Capital Partners (Alpha Intelligence Capital’s U.S.-based fund) and Sente Ventures (in conjunction with TR.PE), also participated in the round. 

The $300 million of equity financing is paired with $220 million in grants from the state of Michigan, totaling over $500 million in funding for ONE's battery cell factory.

“Closing this fundraising round is an important milestone for ONE as we focus on launching our first LFP cell factory in 2024,” Mujeeb Ijaz, CEO & Founder of ONE, said in a press release. “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.”

As a top startup to watch in Detroit, ONE has been rapidly growing since it set up shop in Novi, Michigan outside of Detroit in 2020. In December 2022, the company completed the exterior construction for its first battery cell factory, ONE Circle, in Van Buren Township, Mich.

Image source: ONE

The energy storage technology company is focused on engineering batteries that will accelerate electrification. Their mission is threefold: double the range of EVs, use safer and more sustainable raw materials, and establish a localized supply chain. 

This new equity funding and the state grants will help ONE accelerate that mission and help launch their first LFP cell factory. 

“Batteries are a fundamental component of the global energy transition economy,” said Peter Gajdoš, Partner & Co-Head of The Climate Technology Investment Team at Fifth Wall. “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.”

ONE is hiring software, controls, electrical, and mechanical engineers, as well as other roles in finance and data in Novi, Michigan.