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ONE Announces $1.6 Billion Investment in 20 GWh Michigan Cell Factory

October 5, 2022 | Press Release

ONE Announces $1.6 Billion Investment in 20 GWh Michigan Cell Factory Beginning LFP Production in 2024

  • ONE’s $1.6 billion investment, supported by a $215 million state grant, marks the birth of an emerging trend away from NCM based cell factories making ONE’s Michigan factory first in developing North American material supply chains to commercialize LFP technologies that do not sacrifice EV range.

  • ONE signed a multi-year lease agreement with Ashley Capital for a 659,589 square foot building in Van Buren Township, Michigan. The campus will include raw material refinement, cathode materials production, and cell and battery manufacturing, employing 2,112 highly skilled workers.

  • The new factory, called ONE Circle, will achieve a 45% reduction in carbon emissions by 2028 through a circular manufacturing approach, in partnership with DTE Energy, 6K Energy, and a leading North American battery recycler.

Van Buren Township, Mich., October 5, 2022 - Our Next Energy (ONE), a Michigan-based energy storage technology company, today announced a $1.6 billion investment in a new battery cell manufacturing plant, called ONE Circle, in Van Buren Township, Michigan. The recently constructed facility is expected to create 2,112 new jobs when operating at its full annual capacity of 20 GWh by the end of 2027, equivalent to 200,000 electric vehicle battery packs annually. 

“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. “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’s $1.6 billion investment creating 2,112 jobs in Van Buren Township will build on our economic momentum and secure the future of mobility and electrification right here in Michigan,” said Governor Gretchen Whitmer. “This innovative, Michigan-made company is on the cutting-edge of battery technology, and the work they’re doing will increase the range of electric vehicles to over 600 miles on a single charge. With this new gigafactory, we will continue bringing the supply chain of electric vehicles, chips, and batteries home to Michigan and the USA while creating a sustainable, clean energy economy. Let’s keep putting Michiganders first, creating good-paying jobs with great benefits, and building the future of the auto industry right here in Michigan.”

ONE’s inclusive workforce development program will begin in 2024 and will re-train Michigan residents for the high-skilled green manufacturing jobs at ONE Circle. The company will partner with Detroit-based Focus: HOPE and Walker-Miller Energy Services to help transition Michigan’s talented automotive workforce with emphasis on equitable economic development.

ONE will offer an average annual salary of $67,456 (38% above the ALICE wage threshold), as well as industry-leading benefits and a comprehensive training program. Over the course of 20 years, ONE Circle is expected to generate $967 million in state taxes and more than $13 billion in new personal income. 

“Working with the MEDC, DRP, and Wayne County we were very excited to play a leading role in ONE’s decision to land its operations in Van Buren Township,” said Jerry Norcia, DTE Energy Chairman and CEO. “ONE will bring new, high-tech jobs to Southeast Michigan, supporting further EV deployment and the possibility of integrated, high-capacity energy storage for the electric grid in the future.”

By 2028, ONE Circle will drive down carbon emissions by 45% by onshoring its supply chain and integrating materials refinement with its Massachusetts-based partner 6K Energy into its manufacturing processes, while leveraging renewable energy for 50% of its power needs. ONE is also partnering with a well-known North American battery recycler to be able to bring recycled materials back into its LFP and Anode-Free cells. This more sustainable approach to cell manufacturing is further supported by ONE’s partnership with DTE Energy to operate a grid-tied factory with utility-scale energy storage. ONE Circle will act as a giant battery in its Gigafactory-to-Grid model to help stabilize the local power grid and provide renewable energy to the surrounding community in partnership with DTE Energy. 

ONE conducted a competitive site selection process, evaluating 12 states and a Canadian province, but ultimately selected Michigan because of the commitment of the State and utility partners to making Michigan a key part of the electric vehicle future. This was in part due to Governor Whitmer and EGLE’s MI Healthy Climate Plan, which outlines a path to carbon neutrality by 2050 and a specific focus on supporting increased electric vehicle infrastructure access and affordability. 

ONE will take possession of the newly constructed facility in January 2023 and begin upgrades and equipment installation. ONE Circle is being leased from Ashley Capital and is located at 42060 Ecorse Road in the Crossroads Distribution Center, in Van Buren Township, Michigan.

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ONE Circle Gigafactory

ONE Circle manufactures energy storage technology, increases renewable energy retention, decreases emissions and helps to stabilize the grid.

Animated aerial view of ONE Circle gigafactory with trees and pond in the background