US Energy Department Plans $1 Billion Grants to Boost Critical Minerals Supply

The U.S. Department of Energy said Wednesday it will offer nearly $1 billion in grants to strengthen domestic mining, processing and manufacturing of critical minerals and materials used in electric-vehicle batteries, semiconductors and other high-tech products. Planned notices of funding opportunities include up to $500 million to expand battery-materials processing and recycling, $135 million to demonstrate commercial-scale rare-earth refining, about $250 million to help industrial facilities recover mineral byproducts, and roughly $50 million to advance rare-earth magnet and semiconductor feedstocks. Additional funds will support research into extracting minerals from industrial wastewater. Energy Secretary Chris Wright said the initiative, which aligns with President Donald Trump’s executive order on maximizing U.S. energy development, is intended to reduce the nation’s reliance on foreign suppliers. China currently refines most of the world’s rare earths and other key inputs, prompting Washington to prioritize domestic capacity. The money will be disbursed through the department’s Office of Manufacturing and Energy Supply Chains, Office of Fossil Energy and Carbon Management and other units, with solicitations expected in the coming months. Cost-sharing of at least 50 percent will be required for most awards, the department said.