Oct 17, 2024 at 4:00pm ET

• Massachusetts-based Aspen Aerogels could get up to $670 million from the U.S. Department Of Energy to mass produce battery safety materials.
• The company specializes in making "thermal barriers" to suppress EV fires.

Electric vehicle fires are statistically rarer than gas car fires, according to Tesla and several independent fire safety reports. But when they happen, they're dramatic and tough to put out—grabbing far more headlines than your average gas car blaze.

Now the U.S. is taking serious steps to minimize these risks with next-gen materials that will be manufactured right here on American soil. 

The U.S. Department of Energy announced on Wednesday a direct loan of $670 million to Aspen Aerogels, a company that specializes in manufacturing "thermal barriers" in EV batteries that act as a protective layer against fires. The loan is part of a conditional commitment and is yet to be finalized.

One of the biggest risks to EV safety comes from a phenomenon called thermal runaway. That's when a battery can overheat uncontrollably, to a point where it can burn for hours by itself, without oxygen. Thermal runaway can occur due to multiple reasons, including cell damage, prolonged flooding, short circuits and crashes.

Aspen Aerogels claims its cell-to-cell thermal barriers can suppress fires and prevent them from spreading to neighboring cells.

According to MIT Technology Review, these barriers are super light, so they don't have any significant impact on the battery's energy density or weight as traditional aerogels do. They're between one and four millimeters thick and can be stacked in between cells, with the cost of installation being between $300 to $1000 per EV, according to Don Young, the CEO of the company.

It has already entered multi-year contracts with several major automakers including General Motors, Toyota, Audi and Scania. The company previously also had contracts with NASA to develop aerogels for its space programs and also countless other industrial and consumer goods applications. Its aerogels are also used in Formula One cars.

The investment is expected to create 550 construction jobs and 255 full-time operations jobs at an upcoming plant in Register, Georgia. When operating at full capacity, this plant could supply thermal barriers for 2 million EVs annually. Production at the new plant is expected to begin in 2027.

As EVs get democratized and concerns around battery safety grow, we're seeing more OEMs and battery manufacturers step up to tackle this challenge. South Korean battery maker LG Chem announced in September a "safety reinforced layer" within cells. The safety material is a one-micrometer thin layer situated between the cathode and the current collector that can suppress fire risks.

Now, the challenge would be to democratize these technologies, mass-produce them and keep costs in check for any meaningful impact on everyday road safety.

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