U.S. Opens Door to Coal Waste Tech for Rare Earth Recovery

Sep 5, 2025

3 minute read.

Highlights

  • U.S. Department of Energy reveals three innovative technologies to extract critical minerals from coal waste.
  • Technologies could reduce U.S. dependence on foreign rare earth element supply chains and repurpose industrial waste.
  • Potential to convert environmental liabilities into strategic national security and supply chain resources.

The U.S. Department of Energy (DOE) is inviting private industry to commercialize three federally developed technologies designed to extract rare earth elements (REEs) and other critical minerals from coal byproducts. The move reframes coal waste—traditionally an environmental liability—into a potential asset for national security and supply chain resilience.

The Three Prototypes

Two technologies come from the National Energy Technology Laboratory (NETL) and one from Sandia National Laboratories. Each has been tested at lab scale and is ready for commercial partners to refine and scale.

PrototypeSummary
Mild Acid Leaching from Fly Ash (NETL)A room-temperature method using mild acids to extract REEs from coal fly ash. NETL estimates U.S. fly ash reserves could yield up to 9,000 metric tons of rare earth oxides annually, potentially covering 94% of domestic demand
Supercritical CO©ü and Citric Acid (Sandia)A low-cost, environmentally benign process that uses water, food-grade citric acid, and supercritical CO©ü to recover REEs from ash. Sandia highlights reduced environmental risk compared with conventional methods.
Thermal Processing of Slag (NETL)A technique to concentrate REEs within molten bottom ash (slag) by adding fluxing agents and using controlled heating and cooling. Early trials show 42% extraction efficiency, particularly for critical REEs.

Why This Matters

For the United States, which currently imports nearly all of its REEs, these breakthroughs could help offset China’s near-total dominance of the sector. By leveraging coal byproducts—of which America generates tens of millions of tons annually—the U.S. could reduce dependence on foreign supply chains, repurpose industrial waste, and breathe new life into coal-reliant communities.

This development comes as Washington intensifies efforts to secure domestic critical mineral sources to support defense, energy, and high-tech industries. If scaled successfully, these technologies could become a cornerstone of the U.S. “mine-to-magnet” strategy—without opening new mines.

Key Takeaway

The DOE’s push to transfer these lab-tested technologies to industry represents both a commercial opportunity for companies and a strategic hedge for national security. While challenges remain in cost, scale-up, and feedstock logistics, the potential to meet most U.S. REE demand with coal waste marks a rare win-win: turning environmental liabilities into strategic assets.

Source: Forbes (opens in a new tab)

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By Daniel

Inspired to launch Rare Earth Exchanges in part due to his lifelong passion for geology and mineralogy, and patriotism, to ensure America and free market economies develop their own rare earth and critical mineral supply chains.

1 Comment

  1. Joe B

    How are these processes different from the plan that American Resources Corp and ReElement have for using coal waste to extract REEs? I assume these technologies if commercially developed would compete with AREC, correct?

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