The U.S. Department of Energy (DOE) announced a funding opportunity of up to $134 million aimed at strengthening domestic supply chains for rare earth elements (REEs). The funding, made available through the DOE’s Office of Critical Minerals and Energy Innovation, will support projects that demonstrate commercial methods for recovering and refining REEs from unconventional sources such as mine tailings, electronic waste, and other materials.
According to U.S. Secretary of Energy Chris Wright, “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.”
This initiative builds on the DOE’s Rare Earth Demonstration Facility program, which is focused on developing full-scale integrated facilities in the United States for extracting and separating rare earth elements. The current notice follows an earlier Notice of Intent released by the department in August.
Rare earth elements like Praseodymium, Neodymium, Terbium, and Dysprosium are key components in advanced manufacturing processes including defense systems and high-performance magnets used in electric motors and power generation equipment. By supporting domestic recovery and processing capabilities for these materials, the DOE aims to reduce reliance on imports, enhance national security, boost economic competitiveness, and ensure greater resilience within critical supply chains.
An informational webinar about this funding opportunity is scheduled for December 9, 2025. The DOE requests non-binding letters of intent by December 10, 2025; full applications are due by January 5, 2026.
