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DOE reveals $355M available to reinforce domestic critical minerals supply chains 

November 25, 2025

The Department of Energy (DOE) will distribute $355 million to bolster the domestic production of critical minerals used for energy production, manufacturing, transportation and national defense across two funding opportunities. Applicants have until Dec. 15 to apply to either Notice of Funding Opportunity (NOFO). 

The first opportunity will deliver $275 million through the Mines and Metals Capacity Expansion program to industrial facilities that recover minerals from industrial and coal byproducts. Recipients will demonstrate the potential and feasibility of producing essential materials from infrastructure and industrial activity, mitigating waste while bolstering domestic supply chains. 

Projects that receive funding will pilot the development and implementation of separation and recovery technologies at industrial sites. The program will specifically target two focus areas to create a pipeline for large pilot-scale facilities for these mineral recovery purposes: 

  • Advancing and streamlining the deployment of critical mineral recovery and production using coal-based resources as feedstocks. 
  • Industry sectors creating market-ready components using industrial byproducts and wastes as their source for materials. 

The DOE anticipates awarding $75 million from the holistic program to coal-based industry entities. Up to three awards between $10 million and $50 million will be given. To qualify, recipients must provide a minimum cost share equal to 20% of the total project cost. 

The remaining $200 million will be awarded across all industries seeking to recovery essential minerals. The DOE plans to issue up to 10 awards in total with individual awards ranging from $10 million to $75 million. Recipients must also match the funding with at least 20% of the total project cost to qualify. Eligible applicants include: 

  • Higher education institutions. 
  • For-profit and nonprofit organizations. 
  • State and local government entities. 
  • Indian Tribes. 

The DOE will distribute the remaining $80 million through the second NOFO featured in the announcement – the Mine of the Future – Proving Ground Initiative. The Mine of the Future initiative will advance efforts to accelerate technology commercialization and increase domestic mining operations competitiveness. 

Up to four entities will receive individual awards between $5 million and $40 million. Recipients will deploy innovative technologies under real-world conditions in the mining sector. Projects will advance efforts to develop the infrastructure and technologies needed to evolve traditional mining practices and jumpstart the creation of secure, resilience domestic supply networks. 

The results of the initiative will push the boundaries of emerging mining technologies, bringing them out of laboratory or bench scale performance and tested in a field-scale setting. The Mine of the Future program has identical application eligibility requirements as the Mines and Metals Capacity Expansion program, including a 20% cost share match by the recipient. 

The announcements are the first among the DOE’s promise to invest roughly $1 billion in America’s domestic critical minerals and materials supply chain. The funding aligns with the administration’s plans to capitalize on essential resources as part of the president’s “Unleashing American Energy” executive order. NOFO’s scheduled to be announced in the future include: 

  • Battery Materials Processing and Battery Manufacturing and Recycling Grant Program – $500 million. 
  • Rare Earth Elements Demonstration Facility – $135 million. 
  • Critical Minerals and Materials Accelerator – $50 million. 
  • Recover Critical Minerals from Industrial Wastewater – $40 million. 

This story is a part of the weekly Government Contracting Pipeline digital news publication. See more of the latest government contracting news here. For more national government news, check Government Market News daily for new stories, insights and profiles from public sector professionals.

Adam Rollins

Adam Rollins brings his expertise as a Researcher and Writer to the Managing Editor role for several of SPI's key publications, including Government Contracting Pipeline, Texas Government Insider, and the latest addition, Government Market News. With a rich background as a freelance Content Specialist, Adam has honed a passion for learning and information gathering, delving into various industries. His research and writing have spanned a range of topics, from artificial intelligence (AI) technology, conservation, and project outsourcing, to managed IT services and software development.

Holding a bachelor's degree in English from Texas State University, Adam's proficiency in message development is complemented by his robust research skills and seasoned writing experience. These attributes make him an invaluable asset to SPI, ensuring the delivery of insightful and impactful content to the company's clientele.

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