What's Happening?
The US Department of Energy (DoE) has announced plans to issue nearly $1bn in funding to enhance technologies essential for critical minerals and materials supply chains. This initiative aligns with President Trump's Executive Order to bolster US energy security and industrial competitiveness. The funding includes the Critical Minerals and Materials Accelerator programme, with a notice of funding opportunity (NOFO) of up to $50m. Focus areas include rare-earth magnet supply chains, semiconductor materials, lithium extraction, and critical-material separation technologies. The Office of Fossil Energy and Carbon Management will issue an NOFO supporting $250m for US industrial facilities to produce mineral byproducts. The Office of Manufacturing and Energy Supply Chains plans to issue an NOFO of up to $135m to strengthen domestic supply chains for rare earth elements.
Why It's Important?
This funding initiative is crucial for reducing US reliance on foreign sources for critical minerals, which are essential for modern technology and national security. By reshoring processing and expanding domestic supply, the US aims to enhance its energy security and industrial competitiveness. The initiative supports the development of technologies that can attract capital investment and promote domestic commercialization. Strengthening supply chains for rare earth elements and other critical materials is vital for the US manufacturing sector, particularly in areas like battery production and recycling. The funding also targets the coal-based industry, aiming to pilot technologies at an industrial scale to mitigate risks.
What's Next?
The DoE will issue various NOFOs to support facilities that process, recycle, or use critical materials for manufacturing. Recipients are required to hold a cost-share of at least 50% to be awarded funding. The Advanced Research Projects Agency-Energy is preparing to announce selections for its $40m programme targeting the recovery of critical minerals from industrial wastewater. Additionally, the US has imposed sanctions on entities involved in the illicit trade of critical minerals, as part of efforts to establish peace in the eastern Democratic Republic of Congo.
