DOE Plans $500 Million Funding Opportunity to Advance U.S. Battery Materials Processing and Recycling

The U.S. Department of Energy (DOE) has announced its intent to issue notices of funding opportunities (NOFO) totaling nearly $1 billion aimed at securing domestic access to essential minerals and materials. The initiative encompasses multiple programs supporting critical mineral processing, rare earth element development, and recovery of valuable byproducts from industrial facilities, covering key stages of the domestic supply chain.

Within this broader effort, the DOE plans to release a funding opportunity of up to $500 million specifically focused on strengthening America’s battery supply chain. The program will support expanded processing of critical minerals and materials, derivative battery manufacturing, and recycling, and will be administered by the DOE’s Office of Manufacturing and Energy Supply Chains (MESC).

The DOE noted that the planned notice of funding opportunity (NOFO) will target demonstration and/or commercial-scale facilities engaged in processing and recycling traditional battery minerals—such as lithium, graphite, nickel, copper, and aluminum—as well as other minerals contained in commercially available batteries, including rare earth elements (REEs).

Award recipients will be required to provide at least 50% cost share, says the DOE, which could encourage private-sector investment alongside federal funding.

“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,” said U.S. Secretary of Energy Chris Wright. “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.”

Industry analysts note that, if finalized, the DOE’s funding opportunity could help stabilize critical mineral supplies, lower costs, and reduce environmental impacts compared with reliance on overseas mining and processing.

Source: DOE