Michigan battery startup Our Next Energy laying off 25% of its staff

Novi-based Our Next Energy Inc. is cutting its workforce by 25%, the company said Monday.

ONE is laying off 128 employees, including 82 in Michigan, "in response to market conditions and to focus on core priorities," the company said in a statement.

"While decisions that impact our colleagues are always difficult, these actions position ONE for future growth and delivering on its mission, including continuing to establish its gigafactory (ONE Circle) in Michigan and to develop a North American supply chain for batteries," the company said.

Last year, ONE announced a $1.6 billion investment, supported by more than $200 million in state incentives, to build out ONE Circle in Van Buren Township. The plant is supposed to employ more than 2,000 people.

ONE expects the plant to be operating at full capacity, building enough cells to assemble the equivalent of 200,000 EV battery packs annually, by the end of 2027.

In a statement, Michigan Economic Development Corporation spokesperson Otie McKinley said: "Our Next Energy has been very clear on their continued commitment to the Michigan Gigafactory. At this time, they remain on track to meet their milestones required for disbursement at the existing project scope. The terms of the award to Our Next Energy include both a jobs commitment and an investment commitment, both of which are also subject to audit and verification."

Earlier this month, ONE said it had launched pilot production of lithium iron phosphate batteries at the new plant in Van Buren Township with plans to supply battery cells for customers in the commercial truck, automotive and utility grid sectors. 

Dan Pierce, ONE spokesperson, said in a statement Monday: "Today’s decision has no impact on our commitment to building our gigafactory in Van Buren Township as evidenced by our recent announcement of pilot production."

The downsizing is happening as ONE transitions from research and development to scaling production, according to the company.

"Over the course of 2024 as they get their high-volume line up and running and start producing those cells ... we'll probably see them start to hire more people again," said Sam Abuelsamid, principal e-mobility analyst at market research firm Guidehouse Inc. 

khall@detroitnews.com

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