Michigan-based electric-vehicle battery startup Our Next Energy (ONE) revealed on Monday that it has implemented a workforce reduction, affecting approximately 25% of its employees, totaling 128 staff members. The move comes as ONE grapples with elevated borrowing costs and economic uncertainties.
Founded by former Apple executive Mujeeb Ijaz, ONE had announced in February a successful Series B funding round, securing $300 million and attaining a valuation of $1.2 billion. The recent layoffs are attributed to “market conditions,” but the company emphasized its ongoing commitment to the construction of a gigafactory in Michigan and the development of a North American supply chain for batteries.
Despite the workforce reduction, ONE remains focused on its strategic goals, notably the unveiling of an anode-free battery pack last year. This innovation aims to reduce cell costs by up to 50% while achieving an impressive driving range of up to 600 miles (965 km).
The global electric vehicle market has faced challenges, as evidenced by Panasonic Holdings, a supplier to Tesla, reporting a decrease in automotive battery production in Japan during the September quarter. This decline underscores a broader slowdown in EV sales, attributed in part to higher interest rates.
