Oman Investment Authority (OIA) has acquired minority stake in the US-based company ‘Our Next Energy (ONE),’ which specialises in innovative battery technology for Electric Vehicles (EVs) and energy storage.
This decision is in continuation of OIA’s efforts to diversify its international investment portfolio and achieve optimal benefit for Oman in terms of return on investment and sustainable investments that align with Oman’s commitment to Net Zero emissions by 2050.
This investment comes on the heels of other investments made by OIA in the energy transition field. This includes investments in Ascend Elements, which specialises in recycling lithium-ion batteries, and Group14, which specialises in manufacturing innovative silicon-carbonate battery materials to replace traditional graphite materials used in lithium-ion batteries.
As part of the investment, OIA and ONE signed a Strategic Collaboration Agreement (SCA) to explore potential areas of collaboration in energy storage and battery manufacturing in Oman.
ONE was founded in 2020 as a battery company with the aim of accelerating the world’s progress towards net zero emissions by doubling the range of electric vehicles, using safer, more abundant materials, and establishing a local supply chain.
The company is focused on high-density LFP (Lithium Iron Phosphate)-based batteries, which are created from lower-cost, more abundant iron and are known for improving safety by avoiding thermal runaway.
ONE’s Aries LFP, Aries II, and Gemini batteries all use safe, sustainable LFP chemistry and offer driving ranges between 500 and 1,000 km.
Ibrahim Al-Eisri, Director of Private Equity at OIA, said that OIA was proud to be part of this pioneering technology and vision, which aligns with its strategy to focus on sustainable energy and is compatible with national strategies and commitments such as Oman Vision 2040 and the net zero emissions goal by 2050.
“EVs were the future, and they were making sure to be a player in the transformation to ensure the growth and sustainability of the electric vehicles’ market as an environmentally responsible investor,” he added.
Mujeeb Ijaz, CEO and Founder of ONE, said that having the support from investors like OIA will accelerate ONE’s progress towards a sustainable future and allow the organisation to scale its transportation and grid products into global markets.
The total value of OIA’s assets under management (AuM) stood at $46.61 billion with an annual return of 8.8% in 2022, registering a growth of 11%.
OIA was launched three years ago by merging the Oman Investment Fund and the State General Reserve Fund, said that it has contributed more than $12.99 billion in dividends to the state’s coffers. In 2023, the Omani SWF will be spending close to $4.9 billion in new investment projects.
In its annual report for 2022, OIA said that it continued to extend its support of the state’s general budget with cumulative dividends of $14.55 billion from 2016 until the end of 2022. The report also showcased OIA’s commitment to creating job opportunities for nationals with over 800 job opportunities created in its companies for Omanis.
Additionally, small, and medium-sized enterprises (SMEs) have been awarded tenders and contracts worth about $493.53 million, demonstrating OIA’s ongoing efforts to support them and underscoring OIA’s crucial role in driving economic growth and development of the national economy.