The U.S. Department of Energy (DOE) has announced a funding opportunity of up to $134 million aimed at strengthening domestic supply chains for rare earth elements (REEs). The initiative, managed by the Office of Critical Minerals and Energy Innovation (CMEI), seeks to support projects that demonstrate the commercial viability of recovering and refining REEs from unconventional sources such as mine tailings, electronic waste, and other waste 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 funding opportunity is part of CMEI's Rare Earth Demonstration Facility program. The program aims to establish full-scale integrated facilities within the United States for extracting and separating rare earth elements. The Notice of Funding Opportunity follows a previous Notice of Intent issued by DOE in August.
Rare earth elements like Praseodymium, Neodymium, Terbium, and Dysprosium are critical for advanced manufacturing processes, defense systems, and high-performance magnets used in power generation and electric motors. By investing in domestic recovery and processing capabilities for these elements, DOE intends to reduce reliance on foreign sources while supporting national security objectives.
An informational webinar about this funding opportunity will take place at 1:00 PM ET on December 9, 2025. Interested parties are encouraged to submit non-binding letters of intent by December 10, 2025. Full applications are due by January 5, 2026.
