DOE injects $670 million into EV battery safety: Aspen Aerogels set to expand production

The U.S. Department of Energy (DOE) is throwing $670.6 million in loan support behind Aspen Aerogels, a company known for making fire-resistant materials for EV batteries. This substantial financial backing aims to support the completion of Aspen's new manufacturing facility in Georgia, which produces insulating materials for electric vehicle (EV) batteries.

Aspen Aerogels is tackling one of the trickier problems in the EV industry: battery fires. While fires are rarer than gas-powered cars, they're more challenging in EVs since they can flare up again even after being put out. When used inside battery packs, the company's heat-blocking materials can slow down or stop heat and flames from spreading, potentially preventing terrible accidents.

Jigar Shah, who heads the DOE's Loan Programs Office, discussed the importance of meeting the industry's "critical battery safety goals." This investment fits right into the more significant push to make EVs safer as more people drive them.

The main goal of Aspen's aerogel-based tech is to stop thermal runaway — a nasty cycle where heat and chemical reactions feed off each other, leading to fires or explosions. By slipping these thermal barriers between the battery cells, automakers might be able to contain any problems to smaller parts of the battery, reducing the chances of the whole car catching fire.

Big names like General Motors, Toyota, and Audi already use Aspen's materials in their EVs. Aspen's sales in this space have taken off, jumping from just $7 million in 2021 to a whopping $110 million by 2023, and forecasts suggest it could double again in 2024.

The DOE loan will also help Aspen get its Georgia plant up and running, with operations expected to start in early 2027. Once fully ramped up, the facility could make enough materials for more than two million EVs each year, seriously lifting the company's production.

While the materials help keep things safe, they come with a trade-off, as they can slightly reduce the battery's energy density. But because aerogels are incredibly lightweight, the impact isn't as significant as with other options. Depending on their use, adding these thermal barriers could cost anywhere from $300 to $1,000 per car.