Our Next Energy (ONE), an energy storage solutions company developing a hybrid system based on a cobalt-free battery and a lithium iron phosphate battery for EVs, closed its $300 million Series B funding round at a post-money valuation of $1.2 billion.

Fifth Wall and Franklin Templeton led the funding round with participation from the company’s existing investors and new growth equity investors Temasek, Riverstone Holdings, Coatue, AI Capital Partners, and Sente Ventures.

The Series B round included an earlier $62.5 million convertible note closed with BMW iVentures, Assembly Ventures, Breakthrough Energy Ventures, Volta Energy Technologies, Flex, and Coatue.

“Closing this fundraising round is an important milestone for ONE as we focus on launching our first LFP cell factory in 2024,” said Mujeeb Ijaz, CEO & Founder of ONE.

“We are transitioning from a startup funded by venture capital to a manufacturer fuelled by growth capital. That’s important in this environment where urgent demand for U.S.-based cell manufacturing is rising, supported by the Inflation Reduction Act, in a true public-private partnership,” added Mujeeb Ijaz.

“Batteries are a fundamental component of the global energy transition economy,” said Peter Gajdoš, Partner & Co-Head of The Climate Technology Investment Team at Fifth Wall. “ONE is firmly at the forefront of driving this systemic shift. We believe ONE’s next-generation mobility and stationary storage applications are game changers and are set to transform the $100B+ battery market. We’re thrilled to be a part of the company’s category-defining growth.”

In March 2022, ONE secured $65 million in a Series A funding round led by BMW i Ventures and included Coatue Management, a New York-based investment firm, and contributions from existing investors such as Breakthrough Energy Ventures, Assembly Ventures, Flex, and Volta Energy Technologies.

According to Mercom’s Annual And Q4 2022 Funding and M&A Report for Storage, Grid & Efficiency. VC funding for energy storage companies decreased by 34%, with $5.8 billion in 2022 compared to $8.8 billion in 2021.