Background Several concepts for a habitation module for a lunar orbital outpost were developed under the
Next Space Technologies for Exploration Partnerships 2 (NextSTEP-2) program. NASA determined that Northrop Grumman was the only NextSTEP-2 contractor with designs and production capability that met the module requirements within the required schedule.
Construction On June 5, 2020, NASA awarded Northrop Grumman a $187 million contract to complete the preliminary design of ALO module. These tests were successfully completed in October 2024, clearing the module for final preparations. In early 2025,
Airbus Defence and Space delivered the Power Management and Distribution Subsystem (PMAD), a key electrical component housed within HALO. Following delivery of the HALO module to the United States in April 2025 for final outfitting and integration, NASA reported the discovery of significant corrosion affecting both HALO and the
International Habitation Module (I-HAB), which was also built by Thales Alenia Space. Northrop Grumman characterized the corrosion as a "manufacturing irregularity" that could be repaired, while Thales Alenia Space described it as a "well-known metallurgical behavior". The company noted that similar conditions had been encountered in modules developed for the International Space Station, which have continued to operate reliably and exceeded their original design lifespans. NASA Administrator
Jared Isaacman indicated that addressing the issue may not be straightforward, stating that he was "not sure there is a deterministic approach to repair", and suggesting that remediation efforts would delay the module's readiness beyond 2030. He also questioned whether repair efforts were "even warranted", in light of NASA's shifting focus to developing a
lunar surface base. == Design ==