The Biden Energy Department greenlit a conditional $670.6 million loan to aid in the construction of a manufacturing facility for a key component used in electric vehicle (EV) batteries, according to a press release.
The U.S. Department of Energy’s (DOE) Loan Programs Office (LPO) offered the loan to Aspen Aerogels, a company that makes insulating materials for EVs, according to the Wednesday press release. The loan, if it is finalized, will help fund the construction of a new aerogel blanket manufacturing facility in Register, Georgia.
The aerogel blankets are used as a protective barrier in EV batteries to prevent fires and improve battery safety, according to the release.
The loan from the DOE is part of an ongoing push from the Biden-Harris administration to increase domestic manufacturing jobs and EV production. The administration announced in September that it was granting more than $3 billion for EV battery projects.
The project is expected to create up to 255 full-time operations jobs and 550 construction jobs, according to the release. The company has contracts to provide thermal barriers to several automakers, and the new manufacturing facility is also expected to supply the aerogel barriers for over 2 million EVs annually, according to Bloomberg.
“We are making sure that the supply side is made here in this country,” Director of the Energy Department Loan Programs Office Jigar Shah said according to Bloomberg’s report. “We have taken very seriously the onshoring of the entire supply chain.”
Shah reached a conditional loan commitment in July of over a billion dollars with Entek, a green technology company that has connections to his old trade group. House Republicans previously threatened Shah with a subpoena in January as part of a probe into his office.
The Biden-Harris administration has pushed funding for EV charging stations in the hopes to meet its goal of placing 500,000 stations across the U.S. by 2030, but the initiative has seen slow progress.
The U.S. EV market has faced steep competition from China. China placed export restrictions on graphite, a material needed for manufacturing EV batteries, in October 2023.
Ford announced in September that it would offer free EV chargers and home installations in an attempt to attract consumers amid a struggling auto sales market. The resale value of used EVs has dropped amid a lack of consumer demand.
Georgia is considered a key swing state in this year’s presidential election. Former President Donald Trump is leading by 0.9 points at 48.7% against Vice President Kamala Harris’ 47.8%, according to polling averages by RealClearPolitics.
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