The U.S. Department of Energy plans to deploy up to USD$500 million to expand domestic processing of critical minerals and battery materials, aiming to reduce reliance on foreign supply chains.
The funding call, issued by the DOE’s Office of Critical Minerals and Energy Innovation on Friday, targets large-scale processing and recycling facilities. It focuses on materials used in batteries and energy systems.
The program includes lithium, graphite, nickel, copper and aluminum, along with other battery inputs. Additionally, it supports projects that recover materials from used batteries.
Energy Secretary Chris Wright said the U.S. has depended too heavily on adversarial nations for key materials. He said the funding will help rebuild domestic capacity across the supply chain.
The DOE said stronger supply chains will support rising electricity demand tied to energy systems and artificial intelligence. Consequently, officials see mineral security as tied to national security.
The funding marks the third round of support under DOE programs for battery materials and recycling. Meanwhile, officials continue to prioritize both upstream processing and midstream manufacturing.
Projects will fall into three categories: raw mineral processing, recycling and battery component production. Furthermore, the DOE wants to move projects from pilot stages into commercial operation.
Assistant Secretary Audrey Robertson is meeting partners in Japan during the Indo-Pacific Energy Security Ministerial. She is discussing supply chain coordination with regional allies.
Robertson said domestic production must grow alongside international cooperation. However, she emphasized that partnerships remain essential for long-term resilience.
She added that recycling will play a key role in securing supply. In addition, it can reduce dependence on newly mined materials over time.
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Program reflects urgency to control supply chains
The U.S. currently relies heavily on overseas processing, especially in China. Consequently, policymakers have increased efforts to localize key stages of production.
Officials expect the funding to support facilities that process raw feedstocks into usable materials. Additionally, projects may include plants that manufacture battery-grade components.
The DOE said expanding domestic capacity will help secure inputs for electric vehicles and grid storage systems. Furthermore, it may reduce exposure to supply disruptions.
Washington has prioritized critical minerals as part of broader industrial policy efforts. Meanwhile, agencies continue to align funding with energy transition goals.
The program reflects growing urgency to control supply chains tied to emerging technologies. Consequently, federal support continues to target both production and recycling capacity.
Washington has paired the latest USD$500 million funding call with a broader set of initiatives aimed at reducing China’s dominance in critical minerals.
In recent years, the U.S. Department of Energy has rolled out programs worth close to USD$1 billion to scale domestic mining, processing and battery supply chains. Additionally, federal support has targeted refining capacity, rare earth separation and advanced materials manufacturing.
The U.S. Department of Defense has also stepped in with direct investments and supply agreements. Meanwhile, it has funded projects tied to rare earths and specialty metals needed for military systems.
Washington has also moved to build strategic stockpiles of key materials. Consequently, efforts such as Project Vault aim to secure reserves of minerals like gallium, cobalt and other critical inputs.
The U.S. has also strengthened partnerships with allied nations to diversify supply. In addition, agreements with countries such as Australia and the United Kingdom seek to reduce dependence on Chinese processing.
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Multiple companies have stepped up for critical minerals
Private industry has moved quickly to support these efforts. Additionally, companies are investing in domestic production, recycling and processing infrastructure across North America.
MP Materials Corp. (NYSE: MP) has expanded rare earth mining and magnet production capacity in the United States. Meanwhile, large-scale processing projects are emerging to handle a wider range of critical minerals.
Gold-focused miners have also begun adding strategic metals to their portfolios. Consequently, several companies are repositioning assets to include antimony alongside traditional gold production.
NevGold Corp (CVE: NAU) (OTCMKTS: NAUFF) (FRA: 5E50) is advancing projects that include both gold and antimony, targeting supply tied to defense and industrial demand. Similarly, Perpetua Resources Corp (TSE: PPTA) (NASDAQ: PPTA) is developing the Stibnite project in Idaho, which could become a major domestic source of antimony.
China’s tightening export controls on certain materials have accelerated these moves. Consequently, both policymakers and private companies are working to secure more resilient supply chains.
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