Dive Brief:
- The Energy Department will offer nearly $1 billion in funding for projects that advance and expand mining, processing and manufacturing technologies within the critical minerals and materials supply chains, according to an Aug.13 press release.
- The funding stems from President Donald Trump's January executive order instructing the Energy Department to ensure federal support for critical mineral projects.
- "For too long, the United States has relied on foreign actors to supply and process the critical materials that are essential to modern life and our national security," Energy Secretary Chris Wright said in the release. "Thanks to President Trump's leadership, the Energy Department will play a leading role in reshoring the processing of critical materials and expanding our domestic supply of these indispensable resources."
Dive Insight:
In 2023, the U.S. imported 100% of 12 out of 50 critical minerals, and more than 50% of an additional 29, according to an Energy Department document. China, a U.S. economic and political rival, was the leading producer of 29 of the 43 critical minerals for which information was available.
The U.S. "remains heavily dependent on foreign sources, particularly adversarial nations," for essential materials used in jet engines, missile guidance systems, advanced computing and secure communications equipment, according to a White House fact sheet. The fact sheet noted that China, for example, recently banned exports of critical minerals with potential military applications to the U.S. The ban also includes six heavy rare earth metals and rare earth magnets, which are crucial for automakers, aerospace manufacturers, semiconductor companies and military contractors.
The Energy Department intends to issue notices of funding opportunities (NOFO) totaling $1 billion to help the country ensure a more secure, predictable, and affordable supply of critical minerals and materials deemed foundational to national security and industrial competitiveness.
The largest proposed NOFO is the Battery Materials Processing and Battery Manufacturing and Recycling Grant Program. Under the initiative, the Energy Department's Office of Manufacturing and Energy Supply Chains (MESC) plans to issue up to $500 million to support demonstration or commercial facilities processing, recycling or utilizing critical minerals for manufacturing batteries, per the department release. The award requires a cost-share of at least 50% by the recipient.
The second largest NOFO is the Mines and Metals Capacity Expansion—Piloting Byproduct Critical Minerals and Materials Recovery at Domestic Industrial Facilities. It provides $250 million of financial assistance for facilities with the potential to extract valuable minerals from existing industrial processes. The funding, which the Energy Department's Office of Fossil Energy and Carbon Management will administer, closely follows the Interior Department's July announcement that it would streamline rules for extracting materials from mine waste.
The Rare Earth Elements Demonstration Facility, another NOFO, provides up to $135 million to enhance domestic supply chains for rare earth elements (REEs), a specific subset of critical minerals. MESC will administer the initiative, which requires organizations to demonstrate the commercial viability of new methods for refining and recovering REEs from mining waste, deleterious materials and waste streams. The project team must include an academic partner, and the award requires a cost-share of at least 50% by the recipient.
The Energy Department also announced two smaller NOFOs. One is called the Critical Minerals and Materials Accelerator, administered by the department's Advanced Materials and Manufacturing Technologies Office. It provides up to $50 million to address several areas of interest, including processes in the rare earth magnet supply chain, processes for refining and alloying critical minerals used in semiconductors, and technologies for direct lithium extraction.
The other is the Recover Critical Minerals from Industrial Wastewater NOFO, which provides $40 million to develop recovery technologies for critical minerals. The Energy Department's Advanced Research Projects Agency-Energy will administer this NOFO and plans to announce project selections early this fall.
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