DOE Launches $500 Million Program to Expand U.S. Critical Minerals Processing and Battery Supply Chains

Highlights

• The DOE announced up to $500 million in funding to strengthen U.S. processing, recycling, and manufacturing capacity for critical minerals and battery materials including lithium, graphite, nickel, copper, and aluminum.
• Energy Secretary Chris Wright emphasized the initiative aims to reduce reliance on hostile foreign actors and strengthen U.S. industrial competitiveness and national security in battery manufacturing.
• Applications are due April 24, 2026, with letters of intent by March 27, 2026, marking the third funding round targeting domestic mineral processing, recycling, and battery component manufacturing capacity.

The U.S. Department of Energy (DOE) has announced (opens in a new tab) a Notice of Funding Opportunity (NOFO) that will make up to $500 million available to strengthen domestic processing, recycling, and manufacturing capacity for critical minerals and battery materials. The funding initiative—administered through the DOE Office of Critical Minerals and Energy Innovation (CMEI)—aims to expand U.S. industrial capabilities while reducing dependence on foreign supply chains for strategically important materials.

The program will support demonstration and commercial-scale projects focused on processing raw critical mineral feedstocks, recovering materials through recycling, and manufacturing battery components and materials domestically. Eligible materials include widely used battery inputs such as lithium, graphite, nickel, copper, and aluminum, as well as other minerals contained in commercially available batteries.

According to U.S. Energy Secretary Chris Wright (opens in a new tab), the effort is intended to reinforce U.S. industrial competitiveness and national security. “For too long, the United States has relied on hostile foreign actors to supply and process the critical materials essential for battery manufacturing and materials processing,” Wright said. “This initiative will strengthen domestic industries, support the nation’s ability to meet rising energy demand, and position the United States to lead in advanced technologies.”

The announcement comes as Assistant Secretary for Energy Efficiency and Renewable Energy Audrey Robertson meets with regional allies in Japan during the Indo-Pacific Energy Security Ministerial and Business Forum (IPEM), highlighting the growing connection between energy security and critical minerals supply chains.

“Critical minerals processing is a vital component of our nation’s supply base,” Robertson said. “Boosting domestic production—including recycling—will strengthen national security and ensure the United States and our partners are prepared for the energy challenges of the 21st century.”

This NOFO represents the third round of funding under DOE’s Battery Materials Processing and Battery Manufacturing and Recycling programs. The department is seeking projects in three key areas: expanding domestic processing of raw mineral feedstocks, increasing recovery of critical minerals through recycling of manufacturing scrap and end-of-life batteries, and building U.S. manufacturing capacity for battery materials and components.

Interested applicants are asked to submit non-binding letters of intent by March 27, 2026, with full applications due April 24, 2026. DOE will host an informational webinar on March 26, 2026, to provide additional guidance to potential applicants.

For investors and industry observers, the funding underscores Washington’s continuing effort to build a resilient domestic critical minerals ecosystem, particularly in midstream processing and recycling—areas widely viewed as strategic vulnerabilities in global supply chains.