US launches $500M boost to mineral processing

The U.S. Department of Energy (DOE) plans to provide up to $500 million in funding to expand domestic critical minerals processing and battery materials manufacturing and recycling, as Washington seeks to reduce reliance on foreign supply chains.

The funding opportunity, issued by the DOE’s Office of Critical Minerals and Energy Innovation (CMEI) on Friday afternoon, seeks to support demonstration and commercial-scale facilities that process or recycle critical materials used in batteries and energy technologies.

The initiative targets minerals such as lithium, graphite, nickel, copper and aluminum, along with other materials contained in commercial battery systems.

“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,” Energy Secretary Chris Wright said in a statement.

According to the DOE, strengthening domestic supply chains will help the country meet growing energy and AI-related electricity demand while supporting broader energy security goals.

Collaboration with partners

The announcement comes as Assistant Secretary of Energy for Energy Efficiency and Renewable Energy (EERE) Audrey Robertson attends the Indo-Pacific Energy Security Ministerial and Business Forum in Japan, where U.S. officials are meeting with regional allies to discuss cooperation on supply chain resilience.

Robertson said collaboration with partners remains critical even as the US expands domestic production.

“Critical minerals processing is a vital component of our nation’s critical minerals supply base,” she said. “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 call represents the third round of financial support under DOE programs focused on battery materials processing and battery manufacturing and recycling.

Projects will be selected across three main areas: 1) critical minerals processing from raw feedstocks; 2) critical materials recycling; and 3) battery materials and component manufacturing.

The move is part of a broader push by Washington to rebuild domestic critical mineral supply chains, which are currently dominated by overseas processing hubs, particularly in China.

By supporting new processing and recycling capacity, the DOE aims to strengthen the upstream and midstream segments of the battery supply chain, helping secure raw materials needed for electric vehicles, grid storage and other energy technologies.