Energy Department announces $500 million for domestic critical materials processing and manufacturing

Chris Wright, Secretary of the U.S. Department of Energy
Chris Wright, Secretary of the U.S. Department of Energy
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The U.S. Department of Energy announced on Mar. 13 a Notice of Funding Opportunity for up to $500 million to expand domestic processing, manufacturing, and recycling of critical minerals and battery materials.

This funding aims to strengthen the United States’ supply chain for batteries used in defense, grid resilience, transportation, and other industries. The initiative is intended to reduce reliance on foreign sources for essential materials and bolster national security.

U.S. Energy Secretary Chris Wright said, “For too long, the United States has relied on hostile foreign actors to supply and process the critical materials that are essential in battery manufacturing and materials processing. Thanks to President Trump’s leadership, the Department of Energy is playing a leading role in strengthening these domestic industries that will position the U.S. to win the AI race, meeting rising energy demand, and achieve energy dominance.” Assistant Secretary of Energy Audrey Robertson added from Japan during meetings with regional allies at the Indo-Pacific Energy Security Ministerial that “Critical minerals processing is a vital component of our nation’s critical minerals supply base. Boosting domestic production, including through recycling, will bolster national security and ensure the United States and our partners are prepared to meet the energy challenges of the 21st century.”

The funding opportunity supports demonstration or commercial facilities focused on processing raw feedstocks into battery-grade materials, recycling battery components from scrap or end-of-life products, and increasing domestic manufacturing capacity for strategic battery technologies. A webinar providing more information about this opportunity will be held on March 26 at 1:00 PM ET.

This announcement follows previous efforts by the Department of Energy to support clean energy initiatives. For example, the department announced a $225 million program in July 2022 funded by President Biden’s Bipartisan Infrastructure Law for implementing building energy codes. In addition, Secretary Jennifer Granholm encouraged international cooperation on clean energy transitions at a global forum in Pittsburgh.

Technology development has also been highlighted as important for environmental management missions within DOE laboratories according to testimony before Congress. Innovative processes such as using crushed marble to treat groundwater have been applied at DOE sites as reported by DOE’s Office of Environmental Management. Furthermore, DOE announced $96 million in funding in July 2022 aimed at decarbonizing transportation through electric vehicle infrastructure expansion.

DOE has also launched over 140 programs supporting President Biden’s Justice40 Initiative to direct federal investments toward disadvantaged communities according to an agency announcement.

Non-binding letters of intent for this new funding opportunity are requested by March 27 at 5:00 p.m. ET; applications must be submitted by April 24 at 5:00 p.m. ET.



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