U.S. Energy Department earmarks $1 billion for securing mineral and material supply chain
The United States Department of Energy (DOE) has unveiled a comprehensive funding package worth nearly $1 billion, aimed at bolstering the nation's domestic supply chain for critical minerals essential to clean energy, manufacturing, defense, and technology sectors.
The funding is strategically allocated across several focused areas and programs, with significant investments led by the Office of Manufacturing and Energy Supply Chains (MESC), the Office of Fossil Energy and Carbon Management, the Advanced Research Projects Agency-Energy (ARPA-E), and the Critical Minerals and Materials (CMM) Accelerator under the Office of Energy Efficiency and Renewable Energy (EERE).
MESC's Investment in Critical Minerals Processing
The MESC is set to invest up to $500 million to expand U.S. capacity for battery materials used in electric vehicles and grid storage. This funding is part of Section 40207 of the IIJA and represents the largest portion of the funding package. The MESC also plans to issue an NOFO of up to $135 million to strengthen domestic supply chains for rare earth elements (REEs). Additionally, the MESC will support facilities that process, recycle, or use critical materials for manufacturing, including traditional battery minerals and other commercially important minerals.
ARPA-E's RECOVER Program
The ARPA-E's RECOVER Program, with an allocation of about $40 million, focuses on the extraction of minerals from industrial wastewater and waste streams. The program aims to develop novel extraction methods to recycle critical minerals from unconventional sources.
CMM Accelerator's Role
The CMM Accelerator, with a potential NOFO of up to $50 million, is designed to advance technology, attract investment, and promote domestic commercialization. The program supports the development and demonstration of technologies to process critical minerals, with a focus on new processing tech for critical minerals with a commercialization path of 3 to 7 years.
Other Funding Opportunities
Other funding opportunities include approximately $250 million for U.S. industrial facilities to produce mineral byproducts from existing processes, as well as funding for the demonstration of commercial viability in refining rare earth elements from mining tailings and the refining and alloying of gallium, germanium, silicon carbide (critical for semiconductors and electronics).
This funding package is part of the Trump Administration's energy dominance agenda, following the executive order for “Unleashing American Energy” and related infrastructure legislation. The DOE aims to reduce reliance on foreign entities of concern, diversify supply chains, and enhance U.S. competitiveness and national security regarding critical minerals.
Applicants are advised to prepare by completing registrations, assessing foreign entity exposure, and forming partnerships between academic and industry players with clear commercialization pathways.
According to The Wall Street Journal, more than 80,000 parts in weapons used by the Defense Department rely on critical minerals supplies that China controls. The Executive Order aims to ensure a secure, predictable, and affordable supply of critical minerals and materials. The Energy Department's role, according to Secretary Wright, is to reshore the processing of critical materials and expand domestic supply.
- The Office of Manufacturing and Energy Supply Chains (MESC) will invest $500 million in the United States to expand the capacity for battery materials, primarily used in electric vehicles and grid storage, as part of the comprehensive funding package.
- The Advanced Research Projects Agency-Energy (ARPA-E) will allocate around $40 million for the RECOVER Program, which focuses on mineral extraction from industrial wastewater and waste streams to develop novel recycling methods for critical minerals.
- The Critical Minerals and Materials (CMM) Accelerator, under the Office of Energy Efficiency and Renewable Energy (EERE), may potentially issue an NOFO of up to $50 million to advance technology, attract investment, and promote domestic commercialization of new processing technologies for critical minerals with a commercialization path of 3 to 7 years.
