US Pumps $500M Into Critical Minerals to Cut Foreign Dependence

The US Department of Energy (DOE) said the funding opportunity aims to expand critical mineral processing, battery manufacturing, and recycling capacity in the country as Washington seeks to reduce reliance on foreign supply chains for key materials.

The funding will be issued through a Notice of Funding Opportunity (NOFO) from the DOE's Office of Critical Minerals and Energy Innovation (CMEI).

"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," US Energy Secretary Chris Wright said.

"Thanks to President Trump's leadership, the Department of Energy is playing a leading role in strengthening these domestic industries that will position the US to win the AI race, meeting rising energy demand, and achieve energy dominance," Wright added.

The initiative is designed to strengthen the domestic battery supply chain that underpins sectors such as defense, grid resilience, transportation, and manufacturing.

According to the Energy Department, funding awarded through the program will support demonstration or commercial facilities that process, recycle, or manufacture critical materials used in batteries.

These materials may include traditional battery minerals such as lithium, graphite, nickel, copper and aluminum, as well as other minerals found in commercially available batteries.

The funding round is the third issued through DOE's Battery Materials Processing and Battery Manufacturing and Recycling programs.

Projects supported through the funding will focus on three main areas.

The first is domestic processing of critical minerals from raw feedstocks to expand US capacity for materials used in advanced batteries.

The second area targets recycling efforts to increase recovery of battery minerals through the processing of manufacturing scrap, off-specification materials, and end-of-life batteries.

The third area aims to expand domestic manufacturing capacity for strategic battery materials, components, and technologies.

The Energy Department said the initiative is intended to strengthen supply chain resilience as global demand for advanced batteries continues to grow.

Assistant Secretary of Energy Audrey Robertson said the effort also reflects broader cooperation with partners in the Indo-Pacific.

"I am delighted to be in Japan meeting with our allies, underscoring the important connection between critical materials and energy security," Robertson said.

"Critical minerals processing is a vital component of our nation's critical minerals supply base. 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," she added.

Robertson is currently in Japan meeting regional allies during the Indo-Pacific Energy Security Ministerial and Business Forum, where officials are discussing supply chain resilience and energy security cooperation.

Critical minerals have become central to global competition over advanced technologies, electric vehicles, and energy systems. The United States and its allies have increasingly focused on securing supply chains amid concerns over dependence on foreign processing and refining.

Battery materials such as lithium, nickel, and graphite are widely used in electric vehicles, grid storage systems and other emerging energy technologies, making them a strategic priority for governments seeking to strengthen industrial and energy security.

- IANS