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Michigan Battery Startup ONE Commences In-House Production of Cells

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Michigan Battery Startup ONE Begins In-House Production of Cells

Michigan-based battery startup ONE, led by former Apple Inc. executive Mujeeb Ijaz, has reached a significant milestone by initiating the production of prototype cells at its battery plant. The company, which aims to become a leading US battery manufacturer, currently employs around 70 people, including 50 engineers and 20 production workers. ONE is manufacturing lithium-iron phosphate cells for grid storage and automotive customers at its $1.6 billion facility in Van Buren, Michigan. The startup plans to provide sample cells to potential automotive customers by the first quarter of next year. The company's progress is supported by President Joe Biden's Inflation Reduction Act, which offers subsidies to US-based battery manufacturers. ONE is diversifying its customer base by targeting grid customers and commercial vehicle operators to mitigate risks associated with fluctuations in electric vehicle demand. The startup faces competition from dominant players in the battery industry, such as Contemporary Amperex Technologies Inc. (CATL) and Korean manufacturers. ONE plans to expand its capacity to 20 gigawatt hours and employ approximately 2,100 people by 2027.

Hot Take: Michigan Battery Startup ONE's In-House Production and Its Impact on New Businesses

Michigan-based battery startup ONE's move to start in-house production of prototype cells is a game-changer for new businesses in the battery industry. Led by former Apple Inc. executive Mujeeb Ijaz, ONE is setting a precedent for US-based battery manufacturers by diversifying its customer base and mitigating risks associated with the volatile electric vehicle demand.

Shaping the US Battery Manufacturing Landscape

ONE's goal to become a leading US battery manufacturer is a significant step in reshaping the domestic battery production landscape. The startup's strategy to target grid customers and commercial vehicle operators, in addition to automotive customers, presents a diversified approach that new businesses can learn from.

Capitalizing on Government Support

ONE's progress is bolstered by President Joe Biden's Inflation Reduction Act, which provides subsidies to US-based battery manufacturers. This government support not only validates the importance of domestic battery production but also offers financial incentives that new businesses can leverage.
Competing in a Dominant Market
Despite facing stiff competition from dominant players like Contemporary Amperex Technologies Inc. (CATL) and Korean manufacturers, ONE's ambitious plans to expand its capacity and workforce by 2027 demonstrate a robust growth strategy. This resilience and forward-thinking approach provide valuable lessons for new businesses entering the competitive battery industry.
Story First Published at: https://financialpost.com/pmn/business-pmn/michigan-battery-startup-one-begins-making-its-own-cells
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