Core Viewpoint - Our Next Energy (ONE), a promising American battery manufacturer, is downsizing by leasing out over two-thirds of its factory space due to unexpected challenges in the electric vehicle market [1][2]. Group 1: Company Overview - ONE announced a $1.6 billion investment in October 2022 to build the ONE Circle super factory in Michigan, which received $200 million in state grants [1]. - The factory is set to produce lithium iron phosphate (LFP) battery cells starting in 2024, with plans for full production of batteries and battery packs by early 2027, aiming for an 8% share of the U.S. LFP battery design capacity by 2030 [1]. Group 2: Funding and Partnerships - From October 2021 to February 2023, ONE raised $390 million through Series A and B funding rounds, led by notable investors such as Fifth Wall, Franklin Templeton, BMW i Ventures, and Breakthrough Energy Ventures [1]. - To secure downstream market position, ONE signed 10 customer agreements totaling 36 GWh over the next five years following its Series B funding in Q1 2023 [2]. - In June 2023, ONE entered a Joint Development Agreement (JDA) with Canadian cathode material producer Nano ONE to develop LFP cathode active materials [2]. Group 3: Market Challenges - The electric vehicle demand has not met expectations, leading manufacturers to significantly cut investments, which has adversely affected the business model of battery factories [2]. - Policy changes, such as the Trump administration's cancellation of electric vehicle tax credits and fuel emission regulations, have further dampened the electrification progress in the automotive industry [2].