Washington’s latest effort to reduce reliance on Chinese supplies.
The U.S. Department of Energy has announced up to $500 million in funding to expand domestic processing of critical minerals and strengthen the U.S. battery supply chain.
The funding will support projects focused on mineral processing, battery materials manufacturing, and recycling. Energy Secretary Chris Wright said the program aims to reinforce industries linked to national security, transportation, manufacturing, and power infrastructure, while helping the United States meet rising energy demand and compete in emerging technologies.
The funding round will support facilities that process raw materials, recover minerals from scrap or end-of-life batteries, and manufacture battery components, with the goal of building a fully domestic supply chain.
The initiative marks Washington’s latest effort to reduce reliance on Chinese imports. China dominates global supply chains for many critical minerals, particularly in refining and downstream processing, giving Beijing significant influence over materials essential for batteries, defense systems, and advanced technologies. With export restrictions imposed on numerous critical minerals, supply chains have become increasingly strained.
Other investments include a major push for a national stockpile dubbed “Project Vault” and increased cooperation with allied nations rich in raw materials, for example, Uzbekistan.
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