Latest federal push to bolster domestic critical mineral supply chains.
The U.S. Department of Energy has released a $134 million funding opportunity to build and operate a rare earth element (REE) demonstration facility producing 150–1,000 metric tons per year of separated and refined rare earths. Managed by the Office of Manufacturing and Energy Supply Chains and funded through the Infrastructure Investment and Jobs Act, the project aims to accelerate domestic processing of materials essential to clean energy, advanced manufacturing, and national security.
The facility must process unconventional feedstocks, such as acid mine drainage, mine waste, deleterious materials, or e-waste, and produce separated rare-earth oxides and refined metals, with emphasis on heavy rare earths, for which the U.S. is fully import-dependent. Applicants must complete Front-End Engineering Design, build and commission the facility, secure feedstock and offtake agreements, demonstrate environmental and economic performance, and meet a 50% cost-share.
The funding opportunity aligns with broader U.S. efforts to diversify supply chains and expand domestic production of critical minerals. Processing remains the most significant point of vulnerability in global supply chains, as China controls the majority of worldwide processing capacity, an even larger share than it holds in mining. Recent initiatives by the DOE, the Department of Defense, and the Export–Import Bank also add to this push.
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