Our Next Energy (ONE) is set to invest $1.6bn in its recently constructed battery cell manufacturing plant in Van Buren Township, Michigan, US, dubbed ONE Circle.

The company is partnering with 6K Energy for its manufacturing processes, and with a North American battery recycler to bring recycled materials back into its LFP and Anode-Free cells.

In addition, it is also collaborating with DTE Energy to operate a grid-tied factory with utility-scale energy storage, to employ the more sustainable approach to cell manufacturing.

The company said that ONE Circle will serve as a large-scale battery in its Gigafactory-to-Grid model to stabilise the local power grid and offer renewable energy to the surroundings.

DTE Energy chairman and CEO Jerry Norcia said: “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.”

ONE Circle is anticipated to reduce carbon emissions by 45% by 2028, and generate $967m in state taxes and more than $13bn in new personal income, over a period of 20 years.

The plant will have annual capacity of 20GWh, which is equivalent to producing 200,000 electric vehicle battery packs annually, said energy storage technology company.

It is expected to create 2,112 new jobs when it starts operating at its full annual capacity, which is expected by the end of 2027.

The company intends to launch its inclusive workforce development programme in 2024, which will ensure high-skilled manufacturing jobs at ONE Circle to local workforce.

It will partner with Detroit-based Focus: HOPE and Walker-Miller Energy Services to help transition Michigan’s automotive workforce.

ONE promised an average annual salary of $67,456, along with industry-specific benefits and a complete training programme to its workers.

ONE founder and CEO Mujeeb Ijaz said: “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.

“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.”