The U.S. Department of Energy (DOE) announced a new funding opportunity for up to $134 million aimed at strengthening domestic supply chains for rare earth elements (REEs). The initiative, managed by the Office of Critical Minerals and Energy Innovation, will support projects that demonstrate the commercial viability of recovering and refining REEs from unconventional sources such as mine tailings, electronic waste, and other materials typically considered waste.
According to DOE officials, these efforts are intended to reduce reliance on foreign sources for critical minerals, enhance national security, and advance American energy independence. U.S. Secretary of Energy Chris Wright stated, “For too long, the United States has relied on foreign nations for the minerals and materials that power our economy. We have these resources here at home, but years of complacency ceded America’s mining and industrial base to other nations. Thanks to President Trump’s leadership, we are reversing that trend, rebuilding America’s ability to mine, process, and manufacture the materials essential to our energy and economic security.”
The funding stems from DOE’s Rare Earth Demonstration Facility program, which seeks to establish full-scale integrated facilities for rare earth extraction and separation within the United States. This announcement follows a Notice of Intent released by the department in August.
Rare earth elements like Praseodymium, Neodymium, Terbium, and Dysprosium play a key role in advanced manufacturing sectors including defense systems and high-performance magnets used in power generation and electric motors. By investing in domestic recovery and processing capabilities for these materials, DOE aims to secure energy independence for the country while also bolstering economic competitiveness.
A webinar providing further details about this funding opportunity is scheduled for December 9, 2025 at 1:00 PM ET. Non-binding letters of intent are requested by December 10 at 5:00 PM ET. Full applications must be submitted by January 5, 2026 at 5:00 PM ET.
