Paul Lienert

Mar 1, 2017 (Reuters) – Startup Our Next Energy announced a $65 million round of funding that will allow it to speed up the development and evaluation of potential locations next quarter for its first U.S.-based battery plant.

Michigan-based ONE in December said a prototype of its new high-energy Gemini battery, retrofitted in a Tesla (NASDAQ:) Model S sedan, delivered more than 750 miles of range between charges — far in excess of the best production electric vehicles on the market.

Initial production at the U.S. facility will be for ONE’s Aries battery. It uses an upgraded version of existing lithium iron phosphate cell technology that removes high-cost materials like nickel and cobalt.

ONE is also intensifying research on the Gemini batteries. This battery will include two types of cells including one that uses advanced chemistry, which has a much greater energy density and allows for a longer range.

BMW iVentures, an existing investor, led the new round. Coatue Management joined them, a New York-based firm that specializes in private equity investments in sustainable transportation. This includes competitors Rivian Automobil Inc and Xpeng, as well as Sila Nanotechnologies, a battery materials startup.

The latest round also included existing investors Volta Energy Technology Technologies, Assembly Ventures and Breakthrough Energy Ventures.