Our Next Energy, an EV battery startup headed by Apple veteran Mujeeb Ijaz, was laying off about a quarter of its workforce which Bloomberg said was the latest sign of distress in a market grappling with high interest rates, economic volatility and slowing growth in electric vehicle adoption.

The Michigan based startup known as ONE axed cut 128 salaried and hourly staff as part of a “revised business plan,” according to an emailed statement cited by Bloomberg. The company reportedly said the decision was “in response to market conditions,” but did not elaborate.

The report said ONE, founded in 2020, aimed to become an American manufacturer of lithium iron phosophate (LFP) battery cells which it recently started making for both grid storage and automotive customers at a US$1.6bn plant in Van Buren, Michigan.

The company told Bloomberg the latest retrenchment would position it to grow the factory and develop a North American battery supply chain.