The U.S. Department of Energy (DOE) on Monday announced up to $134 million in new funding to jump‑start domestic supply chains for rare earth elements (REEs). This Notice of Funding Opportunity (NOFO) from the agency’s Office of Minerals and Energy Innovation (CMEI) targets projects that recover and refine critical minerals from mine tailings, e‑waste and other waste streams rather than relying on traditional mining.
The NOFO is part of the broader Rare Earth Demonstration Facility program, designed to support full-scale U.S.-based facilities for rare earth extraction, separation and refinement. The NOFO comes after a Notice of Intent from the department in August.
REEs—including elements like praseodymium, neodymium, terbium and dysprosium—are critical to advanced manufacturing, defense systems, high‑performance magnets used in power generation and electric motors. Historically, the U.S. industry has depended heavily on foreign sources for these materials, exposing key supply chains to risk. By funding domestic recovery and refining, the DOE intends to reduce that dependence, strengthen national security and boost the country’s energy and industrial independence.
Under the NOFO, the DOE will back the design, construction and operation of facilities that produce between 150 and 1,000 metric tons of rare earth elements for domestic use each year. Projects must source feedstock from sources rather than traditional mining. These include mine tailings, e-waste and other waste materials. The DOE will give priority to those targeting heavy REEs.
Non-binding letters of intent must be submitted by Dec. 10, 2025, with full applications due Jan. 5, 2026. The DOE will hold a webinar with additional information on Dec. 9 at 1 p.m.
The $134 million funding marks a clear commitment from the DOE to build a domestic rare‑earth supply chain at commercial scale. If projects succeed, the initiative could reduce U.S. reliance on foreign sources while strengthening supply‑chain resilience for clean energy, defense and manufacturing.
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