Our Next Energy (ONE) said on Monday it has cut around 25% of its workforce, or 128 employees, as the electric-vehicle battery startup deals with high borrowing costs and an uncertain economy.

The company, founded by former Apple executive Mujeeb Ijaz, said in February it had raised $300 million in a Series B funding, which valued the company at $1.2 billion.

While the Michigan-based company cited "market conditions" as reason for the layoffs, it said it is continuing to focus on establishing its gigafactory in Michigan and to develop a North American supply chain for batteries.

The company unveiled a new anode-free battery pack designed last year to slash cell cost as much as 50% while delivering up to 600 miles (965 km) of driving range.

Tesla supplier Panasonic Holdings said last month that it had cut automotive battery production in Japan in the September quarter, underscoring a global slowdown in EV sales due to high interest rates.

(Reporting by Zaheer Kachwala in Bengaluru; Editing by Maju Samuel)