Quick Takeaways
- Our Next Energy EV battery strategy changes after a major customer exit, marking a sharp pivot in the company’s business direction.
- The battery maker is now prioritizing rail, defense, and large-scale energy storage applications over electric vehicles.
On January 6, Michigan-based battery manufacturer Our Next Energy announced the layoff of 29 engineers, managers, and technicians following the sudden and unexpected cancellation of a contract by its largest electric vehicle customer. The decision marked a critical turning point for the company’s EV-focused growth plans.
Workforce Reduction Follows Strategic Realignment
On January 7, ONE Founder and CEO Mujeeb Ijaz stated that the company would suspend its EV battery investments and redirect resources toward batteries for rail, defense, and utility-scale energy storage systems. This strategic reset resulted in a 45% reduction in the company’s overall workforce.
Van Buren Township Facility Plans Revised
Our Next Energy had earlier planned to equip a large facility in Van Buren Township for electric vehicle and other battery production. The project was awarded up to USD 237 million in state taxpayer subsidies. However, the facility was never completed, and part of the building is currently listed for lease.
New Lithium Iron Phosphate Battery Production
ONE confirmed that it has completed retooling at the Van Buren Township site to manufacture a new lithium iron phosphate battery cell. According to the company, these batteries are “engineered for extreme operating environments” and are intended for applications such as defense drones, underwater systems, and deep-sea mining platforms.
This transition signals a decisive change in the Our Next Energy EV battery strategy, as the company narrows its focus to specialized, high-reliability battery markets beyond electric vehicles.
Workforce Reduction Follows Strategic Realignment
On January 7, ONE Founder and CEO Mujeeb Ijaz stated that the company would suspend its EV battery investments and redirect resources toward batteries for rail, defense, and utility-scale energy storage systems. This strategic reset resulted in a 45% reduction in the company’s overall workforce.
- The company indicated that demand for domestically manufactured batteries in these non-EV sectors is increasing and “is expected to enable cash-flow breakeven by the end of 2026.”
Van Buren Township Facility Plans Revised
Our Next Energy had earlier planned to equip a large facility in Van Buren Township for electric vehicle and other battery production. The project was awarded up to USD 237 million in state taxpayer subsidies. However, the facility was never completed, and part of the building is currently listed for lease.
New Lithium Iron Phosphate Battery Production
ONE confirmed that it has completed retooling at the Van Buren Township site to manufacture a new lithium iron phosphate battery cell. According to the company, these batteries are “engineered for extreme operating environments” and are intended for applications such as defense drones, underwater systems, and deep-sea mining platforms.
This transition signals a decisive change in the Our Next Energy EV battery strategy, as the company narrows its focus to specialized, high-reliability battery markets beyond electric vehicles.
Company Press Release
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