Our Next Energy Secures $25M Series A Funding for Battery Technology

Our Next Energy Secures $25 Million in Series A Funding

A Michigan-based startup, Our Next Energy (ONE), has successfully completed a $25 million Series A funding round. This investment will be used to advance their battery technology, which aims to significantly extend the driving range of electric vehicles (EVs).

Attracting Major Investors

The funding round was led by Breakthrough Energy Ventures, an investment firm founded by Bill Gates. Other participants included Assembly Ventures, BMW i Ventures (the venture capital arm of BMW), Flex, and Volta Energy Technologies. This demonstrates substantial confidence in ONE’s innovative approach.

The Hybrid Battery System: Aries and Gemini

ONE is currently developing a unique hybrid battery system. This system comprises two distinct battery types: the Aries and the Gemini. The Aries is a cobalt-free battery designed to mitigate the risk of thermal runaway, a potential fire hazard.

The Gemini functions as a range extender, with ONE projecting a potential range of up to 700 miles on a single charge. The intended use case is for the Aries to power daily commutes, while the Gemini would be deployed for longer journeys. Company research indicates that 85% of vehicles undertake trips exceeding 300 miles at least annually.

Leveraging Lithium-Iron-Phosphate (LFP) Chemistry

This hybrid strategy could be pivotal to ONE’s success. A key element is the chemistry utilized: the Aries employs lithium-iron-phosphate (LFP) technology. Traditionally, LFP batteries have been considered less energy-dense than nickel-based alternatives, but also cheaper.

ONE asserts that its Aries battery pack achieves increased range and reduced costs, while simultaneously avoiding the drawbacks associated with nickel-based batteries. These drawbacks include dependence on limited resources like nickel and cobalt.

Potential as a Drop-In Replacement

The startup’s initial client, whose identity remains confidential, will integrate the Aries as a substitute for an existing nickel-based battery pack. Should LFP batteries prove capable of directly replacing nickel batteries without compromising range or cost, it would represent a significant advancement for the EV industry.

Enhanced Safety with LFP Batteries

LFP batteries generally exhibit a lower risk of fire compared to nickel and cobalt chemistries. This is due to their inherent stability and the higher temperatures required to initiate thermal runaway – a dangerous chain reaction caused by overheating.

Founded by a Battery Technology Veteran

ONE was established by Mujeeb Ijaz, an experienced professional in battery technology. Prior to founding ONE, he led the hybrid fuel cell powertrain development team at Ford. He was later recruited from A123 Systems to contribute to Apple’s automotive project, departing the tech giant just one month before launching Our Next Energy.

Production Timeline and Funding Allocation

Production of the Aries is scheduled to commence in late 2022. ONE intends to manufacture the batteries in Michigan, utilizing a contract manufacturing partner. The newly acquired funding will be allocated to expedite product development, as stated by Ijaz.