The Department of Energy’s (DOE) Loan Programs Office (LPO) announced a conditional commitment for a direct loan of up to $670.6 million to Aspen Aerogels Georgia, LLC (Aspen Aerogels). The loan, if finalized, will help finance the construction of an aerogel blanket manufacturing facility in Register, Georgia.

Aspen’s PyroThin aerogel thermal barriers are used as a protective layer within electric vehicle (EV) batteries, enabling EV manufacturers to achieve critical battery safety goals.

Operating at full capacity, the Georgia factory is expected to supply thermal barriers for more than 2 million vehicle batteries annually. The incremental fuel savings is equivalent to removing more than 5,000 internal combustion engine vehicles from the road each year and enables a reduction of over 8,000 tons of carbon dioxide equivalent annually.

The facility would significantly expand EV thermal barrier manufacturing capacity in North America, helping to reinforce the domestic EV supply chain while delivering new economic opportunities for workers in Georgia.

Aspen’s PyroThin platform offers ultra-thin and lightweight thermal barriers designed to slow or prevent thermal runaway propagation. PyroThin is designed to offer a unique combination of thermal management, mechanical performance, and fire protection properties. In the event a battery cell fails, PyroThin protects neighboring cells from being thermally triggered to avoid a significant fire.

Demand for aerogel thermal barriers such as PyroThin is expected to increase significantly in both the United States and Europe as more stringent thermal mitigation and prevention standards are implemented. In 2022, a study from the National Highway Transportation and Safety Administration (NHTSA) about EV safety helped lead to FMVSS 305A, NHTSA’s new safety standards for EVs. PyroThin allows manufacturers to exceed this standard. Aerogel thermal barriers can help original equipment manufacturers (OEMs) reach their safety goals without sacrificing battery performance.

Aspen has entered into multi-year contracts with a number of major EV manufacturers and suppliers to produce aerogel blankets for EV batteries. These customers include General Motors, Toyota, Scania, Automotive Cells Company, and Audi.

Aspen is currently filling orders for contracted offtakers, and producing prototypes for potential offtakers, at its existing manufacturing plant in Rhode Island. The Georgia facility supported by this conditional commitment would help Aspen Aerogels fulfill expected demand increases and support new offtake agreements.

If finalized, the loan would be offered through the Advanced Technology Vehicles Manufacturing (ATVM) Loan Program, which provides loans to support US manufacturing of advanced technology vehicles, qualifying components, and materials that improve fuel economy.

While this conditional commitment indicates DOE’s intent to finance the project, DOE and the company must satisfy certain technical, legal, environmental, and financial conditions before the Department enters into definitive financing documents and funds the loan.