(Bloomberg) -- Our Next Energy Inc., the Michigan battery startup aspiring to become an American cell manufacturer, said it’s cutting about 13% of its workforce as new leadership seeks to streamline operations and raise fresh capital.

ONE, as the startup is known, is cutting about 40 jobs, mostly general and administrative positions, said Paul Humphries, a board member of ONE who took over as Chief Executive Officer in December after a funding round fell through. The company is closing offices in Boston and California to consolidate engineering work in Michigan, where it’s building battery packs at a $1.6 billion manufacturing plant. The startup plans to keep and even grow its research and development team in Fremont, California, Humphries said.

Read more: Battery Startup ONE Demotes Founder and CEO During Cash Crunch

ONE is focused on generating revenue in the near term through sales of its Aries battery pack, which uses lithium-iron phosphate chemistry, known as LFP. The technology is often used in China and is cheaper and more stable than the nickel-based lithium-ion batteries popular in the West. The company is targeting both commercial electric vehicles and grid storage customers.

The startup, founded in 2020, closed two recent funding rounds, one at the end of January and another at the end of February, from existing investors, Humphries said, without specifying the amount raised. He expects to close another funding round as soon as April that will bring in new investors.

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