Energy Department announces $500 million for domestic critical materials processing and manufacturing

Chris Wright, U.S. Secretary of Energy
Chris Wright, U.S. Secretary of Energy - Official Website
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The U.S. Department of Energy announced on Mar. 13 a Notice of Funding Opportunity for up to $500 million to expand domestic processing, manufacturing, and recycling of critical minerals and battery materials.

This funding aims to strengthen the United States’ supply chain for batteries used in defense, grid resilience, transportation, and other industries. The initiative is intended to reduce reliance on foreign sources for essential materials and support national security.

U.S. Energy Secretary Chris Wright said, “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. Thanks to President Trump’s leadership, the Department of Energy is playing a leading role in strengthening these domestic industries that will position the U.S. to win the AI race, meeting rising energy demand, and achieve energy dominance.” Assistant Secretary of Energy Audrey Robertson added from Japan, “I am delighted to be in Japan meeting with our allies, underscoring the important connection between critical materials and energy security. 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.”

The funding opportunity supports demonstration or commercial facilities focused on processing raw feedstocks into battery-grade materials, recycling end-of-life batteries or manufacturing scrap for material recovery, and increasing domestic capacity for battery components. A webinar providing more information will be held at 1:00 PM ET on March 26; non-binding letters of intent are requested by March 27 at 5:00 p.m., with applications due by April 24 at 5:00 p.m.

This announcement follows several recent DOE initiatives aimed at advancing clean energy technologies and supporting disadvantaged communities. On July 21, 2022, the department announced a $225 million program funded by President Biden’s Bipartisan Infrastructure Law to implement new building energy codes. That same day, Secretary Jennifer Granholm released a video encouraging international cooperation on clean energy transitions ahead of the Global Clean Energy Action Forum.

In addition, DOE officials highlighted technology development’s role in environmental cleanup missions during congressional testimony in July 2022. The DOE Office of Environmental Management also reported using an innovative passive process involving crushed marble to address groundwater issues at Savannah River Site according to their update. Furthermore, the department announced $96 million in funding opportunities for decarbonizing transportation through electric vehicle infrastructure expansion.

On July 25, 2022, DOE announced over 140 programs supporting President Biden’s Justice40 Initiative aimed at delivering clean energy investments to disadvantaged communities.

The broader impact of this latest funding round is expected to further enhance U.S. competitiveness in advanced battery technologies while supporting economic growth across multiple sectors.



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