The location was decided upon after a thorough site selection procedure among 12 states and 1 Canadian province. According to InsideEVs, the gigafactory is thought to be the best in Michigan, which will also offer a $200 million state grant.
“ONE is thrilled to select Michigan for our first cell factory, due to the state’s unique combination of battery talent, proximity to material supply and access to low-cost energy,” said Mujeeb Ijaz, founder, and CEO of ONE.
“We applaud the leadership of Governor Gretchen Whitmer and the MEDC team, led by Quentin Messer. In addition, our collaboration and new strategic partnerships with DTE Energy, Van Buren Township, and Wayne County have helped ONE build a strong foundation for clean tech manufacturing in Michigan.”
The Michigan-based company and Ashley Capit have agreed to a multi-year lease for a 659,589-square-foot building in Van Buren Township that will be transformed into a battery plant. It is intended for the fabrication of li-ion batterypacks and cells for passenger and commercial vehicles. The site will also involve cathode material production and raw material refinement, ONE claims.
It is worth noting that ONE has a significant preference for the Lithium Iron Phosphate (LFP) prismatic type over the NCM (Nickel Cobalt Manganese), as per the report.
When operating at its maximum annual capacity of 20 GWh by the end of 2027, the newly built facility is anticipated to provide 2,112 new employments. Each year, it equates to 200,000 battery packs for electric vehicles (100 kWh each).
ONE pledged to offer “an average annual salary of $67,456 (38% above the ALICE wage threshold), as well as industry-leading benefits and a comprehensive training program.”
Governor Gretchen Whitmer stated, “ONE’s $1.6 billion investment creating 2,112 jobs in Van Buren Township will build on our economic momentum and secure the future of mobility and electrification right here in Michigan.”
“This innovative, Michigan-made company is on the cutting-edge of battery technology, and the work they’re doing will increase the range of electric vehicles to over 600 miles on a single charge. With this new gigafactory, we will continue bringing the supply chain of electric vehicles, chips, and batteries home to Michigan and the USA while creating a sustainable, clean energy economy. Let’s keep putting Michiganders first, creating good-paying jobs with great benefits, and building the future of the auto industry right here in Michigan,” Whitmer elaborated.
According to Electric Car Reports, Michiganders will be retrained for the highly skilled green manufacturing position at ONE Circle through the comprehensive workforce development program, which will start in 2024.
“The company will partner with Detroit-based Focus: HOPE and Walker-Miller Energy Services to help transition Michigan’s talented automotive workforce with emphasis on equitable economic development,” the report stated.
Jerry Norcia, DTE Energy Chairman, and CEO, asserted, “Working with the MEDC, DRP, and Wayne County we were very excited to play a leading role in ONE’s decision to land its operations in Van Buren Township.”
“ONE will bring new, high-tech jobs to Southeast Michigan, supporting further EV deployment and the possibility of integrated, high-capacity energy storage for the electric grid in the future,” he added.
Prior to the commencement of production, ONE reportedly had orders for its batteries from automakers. However, the business refuses to disclose them. On the other hand, manufacturers of passenger cars are interested in battery cells, whereas those of heavy commercial trucks would like to purchase full packs (battery systems).
According to ONE, LFP Aries battery systems will start to be sold in 2023. BMW I Ventures invested in the business and is working on the Gemini hybrid battery pack, which uses two different battery cell chemistries.
The business also creates lithium metal anode in addition to LFP, which offers a 1,007 Wh/l volumetric energy density.Notably, both of those battery chemistries would probably be combined in a single battery pack.
The report also claims that the Gemini battery technology will be incorporated by ONE into a BMW iX prototype later this year to reach a range of 600 miles (965 km).
In hindsight, ONE’s proof-of-concept battery (203.7 kWh) enabled a Tesla Model S to travel 752 miles (1,210 km) at a constant speed of 55 mph (88 km/h) in December 2021.
PR Newswire reported that ONE Circle intends to reduce carbon emissions by 45% in 2028 by “onshoring its supply chain and integrating materials refinement with its Massachusetts-based partner 6K Energy into its manufacturing processes, while leveraging renewable energy for 50% of its power needs.”
The report also highlighted ONE’s partnership with “a well-known North American battery recycler to be able to bring recycled materials back into its LFP and Anode-Free cells. This more sustainable approach to cell manufacturing is further supported by ONE’s partnership with DTE Energy to operate a grid-tied factory with utility-scale energy storage.”
In its Gigafactory-to-Grid approach, ONE Circle will function as a massive battery to support DTE Energy. It will also help the local power grid remain stable while supplying renewable energy to the community.