The U.S. Department of Energy’s Office of Critical Minerals and Energy Innovation has announced a Notice of Funding Opportunity for up to $134 million aimed at improving domestic supply chains for rare earth elements. The funding will support projects that focus on recovering and refining rare earth elements from unconventional sources, such as mine tailings, electronic waste, and other waste materials.
“For too long, the United States has relied on foreign nations for the minerals and materials that power our economy,” said U.S. Secretary of Energy Chris Wright. “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 Rare Earth Demonstration Facility program within the Office of Critical Minerals and Energy Innovation. The program is intended to demonstrate full-scale integrated facilities in the United States capable of extracting and separating rare earth elements.
Rare earth elements like praseodymium, neodymium, terbium, and dysprosium are important for advanced manufacturing sectors including defense systems and high-performance magnets used in electric motors and power generation equipment. By focusing on domestic recovery and processing capabilities, the Department of Energy seeks to increase energy independence and strengthen economic competitiveness while reducing reliance on foreign sources.
A webinar with more information about this funding opportunity is scheduled for December 9, 2025. Non-binding letters of intent are requested by December 10, 2025, with full applications due by January 5, 2026.
