Michigan-based battery startup Our Next Energy (ONE) plans to reduce its workforce by about 13%, with approximately 40 employees to be laid off to streamline operations and raise new funds. However, it will continue to focus on building its superfactory in Michigan to establish a North American battery supply chain.

Additionally, with the company owning $1.6 billion manufacturing facility in Michigan primarily producing battery packs, CEO Humphries announced the closure of offices in Boston and California to concentrate efforts on Michigan’s engineering work. The company will retain its R&D team in Fremont. Former CEO Mujeeb Ijaz resigned in December due to financing failure, and new CEO Humphries revealed that two rounds of financing were completed at the end of January and February respectively, with plans for another round in April.

The Aries battery pack introduced by ONE uses lithium iron phosphate (LFP) battery, which is cheaper and more stable than nickel-based lithium-ion batteries. The company’s target customers are commercial EV and grid storage companies. Currently, the company aims to focus on selling the Aries product to generate revenue in the short term.