Our Next Energy Inc., a Novi-based battery startup, has made another mass layoff after previously cutting a quarter of its staff and appointing a new CEO in the previous year. Overall, 37 roles are being cut, 24 being from the Michigan branch, shifting the company’s focus less on administrative roles and more on its technical operations. This leaves approximately 240 employees in Michigan and around 270 throughout the country.
These layoffs have taken place after Paul Humphries assumed the position of CEO in December. ONE expressed in an official statement its intent to divert its attention to research, development, engineering, supply chain and manufacturing by reducing expenses in non-product-related operations. The company aims for increased financial efficiency and attracting more strategic and financial investors.
The recent layoffs are not exclusive to ONE and have also impacted manufacturers and suppliers like Rivian Automotive Inc. The underwhelming consumer demand for EVs has led to the cutting or delay of billions of dollars in investments. The accessibility issues concerning EV affordability and charging stations, as well as concerns about range and charging speeds, have impeded the adoption of EVs in the market.
Despite this, ONE was able to secure $300 million in early 2023 as part of a valuation of over $1 billion. However, by November, the company found it necessary to lay off 128 workers to adjust to the market situation and realign its primary objectives. Paul Humphries, who replaced Mujeeb Ijaz as CEO (who still serves as the company’s Chief Technology Officer) after the layoffs, has extensive experience in manufacturing and operations.
However, it is emphasized that these layoffs will not affect the battery cell production at the ONE Circle manufacturing plant located in Van Buren Township. Fueled by over $200 million in state incentive, a $1.6 billion investment for the plant was announced in 2022. The objective of this investment is to employ over 2000 people and produce 200,000 EV battery packs annually by the end of 2027.
The Van Buren Township plant recently initiated the pilot production of lithium iron phosphate battery cells. The production of the Aries LFP battery packs was earlier started in 2023 at Piston Automotive in southeast Michigan. The overall plan is to propel the transition to electrification with domestically manufactured battery cells and packs.
Source: Novi battery startup Our Next Energy lays off more workers
