DOE Opens $134 Million Call to Expand U.S. Rare Earth Supply Capacity

The U.S. Department of Energy’s Office of Critical Minerals and Energy Innovation has issued a funding call worth up to $134 million aimed at boosting domestic production of rare earth elements and easing the country’s dependence on imported materials, according to a new agency announcement.

The program seeks projects capable of proving that rare earths can be commercially recovered and refined from sources often treated as waste, including mine tailings, industrial residues and discarded electronics. DOE officials say broader use of these feedstocks could strengthen national security and support long-term energy planning.

Energy Secretary Chris Wright said the country “relied on foreign nations” for minerals essential to modern manufacturing, noting that limited investment over the years allowed overseas competitors to dominate refining and separation.

The department noted that key rare earths such as praseodymium, neodymium, terbium and dysprosium are essential for advanced manufacturing, defense applications and high-strength magnets used in wind turbines and electric motors. Analysts say U.S. mining activity has increased in recent years, but large-scale processing capacity remains insufficient, leaving supply chains vulnerable to global disruptions.

The funding opportunity is part of the department’s Rare Earth Demonstration Facility program, which aims to validate fully integrated extraction and separation systems within the United States. The notice follows a preliminary statement released in August outlining program priorities.

According to the announcement, an informational webinar is scheduled for 1:00 PM ET on December 9, 2025. The department is encouraging nonbinding letters of intent by 5:00 PM ET on December 10, 2025, with full applications due by 5:00 PM ET on January 5, 2026.

Source: US Department of Energy

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