Just over a year after stepping down as CEO of battery startup Our Next Energy (ONE), Mujeeb Ijaz has returned to the helm, coinciding with the company's announcement of a new funding round led by Crescent Ventures and Trousdale Ventures. The exact size of the funding round remains undisclosed, with ONE declining to comment by the time of publication.

This leadership shakeup marks a significant development for ONE, which had been struggling to raise a Series C round. Ijaz initially stepped aside as CEO in December 2023, taking on the role of CTO, and was replaced by board member Paul Humphries. Humphries, who was recruited by Ijaz, brought experience from his time at Flex, a contract manufacturer.

The Series C round had initially fallen through after Just Climate pulled out of leading the round with a $100 million investment, as reported by Bloomberg in December 2023. At the time, ONE was facing a cash crunch, having raised a massive $300 million in a Series B that valued the company at $1.2 billion post-money. The company was in the midst of building a $1.6 billion LFP battery factory in Michigan, which added to its financial strain.

In response to its financial struggles, ONE laid off 128 employees, approximately 25% of its staff, to shore up its finances. The company's fresh funding and Ijaz's return as CEO may signal a new direction for the startup. Notably, Ijaz's brother, Mansoor, Chairman of Crescent Ventures, will also join the board.

Ijaz founded ONE in 2020, following stints at Apple and Ford. The startup gained significant attention after retrofitting a Tesla Model S with its dual-chemistry battery pack, called Gemini, which enabled the sedan to travel 752 miles on a single charge. The innovative design allowed ONE to utilize LFP, a durable, low-cost chemistry, for daily driving duties, and then draw on reserve cells made with a manganese-based chemistry for infrequent use.

Despite being tested in a BMW iX, ONE's Gemini pack design has yet to be adopted by a major automaker. However, BMW was an early investor in the startup. The implications of Ijaz's return and the new funding round on ONE's future prospects and potential adoption of its technology by major automakers remain to be seen.

As the electric vehicle industry continues to evolve, startups like ONE play a crucial role in driving innovation and reducing costs. Ijaz's return as CEO, accompanied by fresh funding, may signal a new chapter for the company and its mission to revolutionize the battery industry.