The US Department of Energy’s Office of Critical Minerals and Energy Innovation has announced up to $134 million in new funding to boost domestic supply chains for rare earth elements (REEs). The initiative will support projects that demonstrate commercial-scale recovery and refining of REEs from unconventional sources such as mine tailings, e-waste, and other waste materials—efforts aimed at reducing reliance on foreign suppliers and strengthening US energy and national security. The funding opportunity is part of DOE’s Rare Earth Demonstration Facility program, which seeks to build full-scale extraction and separation capabilities within the United States. REEs like neodymium and dysprosium are essential for advanced manufacturing, defense systems, and high-performance magnets. Letters of intent are requested by December 10, 2025, with full applications due January 5, 2026. The DOE writes:
The U.S. Department of Energy’s (DOE) Office of Critical Minerals and Energy Innovation (CMEI) today announced a Notice of Funding Opportunity (NOFO) for up to $134 million to enhance domestic supply chains for rare earth elements (REEs). Through this funding, DOE will support projects that demonstrate the commercial viability of recovering and refining REEs from unconventional feedstocks including mine tailings, e-waste, and other waste materials. These efforts will reduce America’s dependence on foreign sources, strengthen national security, and promote American energy independence.
“For too long, the United States has relied on foreign nations for the minerals and materials that power our economy,” said U.S. Secretary of Energy Chris Wright. “We have these resources here at home, but years of complacency ceded America’s mining and industrial base to other nations. Thanks to President Trump’s leadership, we are reversing that trend, rebuilding America’s ability to mine, process, and manufacture the materials essential to our energy and economic security.”
This funding opportunity stems from DOE’s Office of Critical Minerals and Energy Innovation’s Rare Earth Demonstration Facility program, which is designed to demonstrate full-scale integrated rare earth extraction and separation facilities within the United States. This NOFO follows the Department’s Notice of Intent released in August.
REEs, such as Praseodymium, Neodymium, Terbium and Dysprosium, are vital components in advanced manufacturing, defense systems, and high-performance magnets used in power generation and electric motors. By investing in domestic REE recovery and processing, DOE is working to secure America’s energy independence, strengthen economic competitiveness, and ensure long-term resilience in the nation’s supply chains.
A webinar with additional information on this funding opportunity will be held at 1:00 PM ET on December 9, 2025. The webinar can be joined here.
Non-binding, non-mandatory letters of intent are requested by December 10, 2025, at 5:00 PM ET to assist the Department in planning for the review process. Full applications must be submitted by 5:00 PM ET on January 5, 2026.
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