NOVI–Our Next Energy Inc., the Novi-based energy storage technology company, today announced it has closed a $300 million Series B capital raise at a post-money valuation of $1.2 billion.
The round was led by the Los Angeles venture capital firm Fifth Wall and the San Mateo, Calif.-based money management firm Franklin Templeton, and joined by ONE’s Series A investors and new growth equity investors Temasek Holdings Ltd., the Singapore government investment firm; the New York City private equity firm Riverstone Holdings; and the New York City investment firm Coatue Management.
Two undisclosed strategic investors also participated in this round, including a manufacturer of EV technology and a renewable energy provider, representing cell offtake agreements. Two new venture equity investors, Luxembourg-based AI Capital Partners (Alpha Intelligence Capital’s U.S.-based fund) and Chicago-based Sente Ventures (in conjunction with Istanbul, Turkey-based TR.PE), also participated in the round.
“Closing this fundraising round is an important milestone for ONE as we focus on launching our first LFP cell factory in 2024,” said Mujeeb Ijaz, founder and CEO of ONE. “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.”
ONE Circle is the company’s first battery cell factory. Located in Van Buren Township, Michigan, the factory’s exterior construction was completed in December 2022.
“Batteries are a fundamental component of the global energy transition economy,” said Peter Gajdoš, partner and 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 $100 billion-plus battery market. We’re thrilled to be a part of the company’s category-defining growth.”
In conjunction with Franklin Templeton’s investment in ONE’s Series B, Richard Piliero, a managing director at Franklin Templeton, will join ONE’s board of directors. Piliero has more than 23 years of private equity experience.
ONE closed a $62.5 million convertible note in January 2022 as part of the Series B. The note was led by BMW i Ventures and joined by Assembly Ventures, Breakthrough Energy Ventures, Coatue, Flex [NASDAQ: FLEX] and Volta Energy Technologies.
More about Our Next Energy at one.ai.