US Department of Energy Announces $1 Billion in Funding to Boost Critical Minerals Supply Chain

The US Department of Energy (DOE) has announced plans to issue nearly $1 billion in funding opportunities to scale mining, processing, and manufacturing technologies for critical minerals and materials. This plan aims to strengthen domestic supply chains essential for energy, defense, and industrial competitiveness. The funding will target key supply chain gaps, including rare-earth magnet production, direct lithium extraction, and separation technologies to recover valuable products from byproducts and scrap.

The U.S. Department of Energy (DOE) has announced plans to issue nearly $1 billion in funding opportunities to scale mining, processing, and manufacturing technologies for critical minerals and materials. This initiative aims to strengthen domestic supply chains essential for energy, defense, and industrial competitiveness.

The funding, part of a larger $1 billion package, will target key supply chain gaps, including rare-earth magnet production, direct lithium extraction, and separation technologies to recover valuable products from byproducts and scrap [2].

The funding opportunities will be released through notices of funding opportunities (NOFOs) and notices of intent (NOIs). The first NOI, released on August 13, 2025, outlines a "Critical Minerals and Materials Accelerator" program with up to $50 million in funding. This program aims to support industry-led partnerships to prototype and pilot innovative technologies currently proven only at the bench scale [1].

The DOE plans to leverage other lab-based investments, such as the Critical Materials Innovation (CMI) Hub and the Minerals to Materials Supply Chain Research Facility (METALLIC), to support technology maturation and unlock private capital investments [1].

The funding will focus on several areas of interest, including processes in the rare earth magnet supply chain, refining and alloying gallium, gallium nitride, germanium, and silicon carbide for semiconductors, technologies for cost-competitive direct lithium extraction and separation, and technologies that improve the cost competitiveness of critical material separation through co-production of value-added products from byproducts and scrap [1].

Lithium Royalty Corp. (LRC), a company that benefits from these supply chain advancements, reported its second-quarter 2025 results, showing a decrease in revenue due to depressed lithium prices and shipment delays. However, the company remains optimistic about the long-term prospects of its portfolio, which includes projects like Ganfeng Lithium’s Mariana project, Zijin Mining’s Tres Quebradas project, and Atlas Lithium’s Das Neves project [3].

The DOE's funding announcement comes as the global demand for critical minerals continues to grow, driven by the increasing adoption of electric vehicles, renewable energy technologies, and advanced manufacturing processes. By addressing the supply chain gaps, the DOE aims to ensure a more secure, predictable, and affordable supply of these essential materials.

References:
[1] https://www.energy.gov/eere/ammto/critical-minerals-and-materials-accelerator-0
[2] https://www.marketscreener.com/news/us-announces-1-billion-in-funding-for-critical-minerals-materials-sectors-ce7c51d8d981f023
[3] https://www.morningstar.com/news/business-wire/20250814077807/lithium-royalty-corp-announces-second-quarter-2025-results