(Bloomberg) -- Our Next Energy Inc., the battery startup led by Apple Inc. veteran Mujeeb Ijaz, is laying off about 25% of its workforce, 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 cut 128 salaried and hourly staff as part of a “revised business plan,” according to an emailed statement Monday. The company said the decision was “in response to market conditions,” without elaborating.

ONE, founded in 2020, aims to become an American manufacturer of lithium-iron phosophate, or LFP, battery cells. It recently started making the cells for both grid storage and automotive customers at its $1.6 billion plant in Van Buren, Michigan.

The company said the latest retrenchment will position it to grow the factory and develop a North American battery supply chain.

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