DOE Launches Nearly 1 Billion in Funding to Secure U.S. Critical Minerals and Battery Supply Chains

Overview

The U.S. Department of Energy (DOE) has unveiled close to $1 billion in competitive funding opportunities designed to bolster the United States’ domestic critical-minerals supply chain and advanced manufacturing capabilities. These initiatives span mining, processing, recycling of battery components, and the production of strategic materials—reflecting the federal focus on clean energy technologies, semiconductor resilience, and national-security manufacturing.

Major Funding Tracks and Focus Areas

1. Battery Materials Processing, Manufacturing & Recycling — up to ~$500 millionThrough its Office of Manufacturing and Energy Supply Chains (MESC), DOE is targeting projects that scale the U.S. ability to process, manufacture and recycle key battery-related minerals—lithium, graphite, nickel, copper, aluminum—fundamental to electric vehicles (EVs), grid energy storage and supply-chain security.

2. Rare-Earth Demonstrations from Tailings — ~ $135 millionA dedicated track supports demonstration-scale recovery of rare-earth elements (REEs) from unconventional sources such as mine tailings and industrial waste streams. Critical materials like neodymium, dysprosium and terbium—used in motors, turbines and defense systems—can be recovered more sustainably and domestically.

3. Industrial Byproduct Recovery — ~ $250 millionManaged in part through DOE’s Office of Fossil Energy & Carbon Management (FECM), this funding category encourages the conversion of industrial waste (

coal ash, fly ash, mining by-products) into valuable critical minerals—turning former liabilities into strategic resources.

4. Specialized Material Processing for Gallium, Germanium & Silicon Carbide — ~ $50 millionThis stream targets processing, refining and alloying strategic materials such as gallium, germanium and silicon carbide—essential to next-gen semiconductors, power-electronics and telecommunications. Given global supply risks, establishing domestic capacity is a strategic priority.

Why It Matters

Economic & Industrial Impacts

• Unlocks major new capital for U.S.-based projects, reducing dependence on foreign sources of key materials.

• Supports domestic competitiveness in emerging sectors—battery manufacturing, renewable energy, advanced electronics.

Innovation & Circularity Benefits

• Promotes recovery of materials from waste and by-products, advancing circular-economy models and reducing environmental impact.

• Enables novel processing and manufacturing methods that strengthen U.S. leadership in critical-materials technologies.

What Organizations Should Do Now

Companies operating in battery manufacturing, materials processing, recycling, extraction from waste streams or advanced material production should evaluate alignment with these funding tracks. Key actions include:

• Identifying which DOE office (MESC, FECM, EERE) fits their project scope

• Ensuring a clear commercialization pathway and domestic sourcing compliance

• Engaging with teaming partners and supply-chain stakeholders to strengthen eligibility

• Monitoring upcoming Notices of Funding Opportunity (NOFOs) and preparing proposals accordingly

  
  

About Rosewater Consulting

At Rosewater Consulting, we guide organizations through federal-funding strategy and execution across agencies including DOE, ARPA-E, DOD and more. From proposal planning to post-award compliance, we help clients navigate complex requirements and win transformative awards.

If you are preparing to compete in DOE’s critical-minerals or battery-manufacturing funding programs, now is the time to align your strategy and strengthen your submission.