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DOE investing $355 million to expand domestic production of critical minerals

By Michelle Froese | December 26, 2025

The US Department of Energy’s (DOE) Office of Critical Minerals and Energy Innovation (CMEI) announced a Notice of Funding Opportunity (NOFO) for up to $134 million to strengthen domestic supply chains for rare earth elements (REEs).

The funding opportunity is part of DOE’s Rare Earth Demonstration Facility program, which focuses on advancing full-scale, integrated rare earth extraction and separation capabilities within the US.

The NOFO follows the Department’s Notice of Intent released in August and supports the transition from laboratory-scale research to commercial-scale deployment.

Through this funding, DOE will support projects that demonstrate the commercial viability of recovering and refining REEs from unconventional feedstocks, including mine tailings, e-waste, and other waste materials. These efforts aim to reduce reliance on foreign sources, improve supply chain resilience, and support US energy security.

REEs such as praseodymium, neodymium, terbium, and dysprosium are critical inputs for advanced manufacturing, defense systems, and high-performance permanent magnets used in electric motors and power generation equipment. These materials are also foundational to electric vehicle traction motors and related electrification technologies, making domestic REE production increasingly relevant to EV supply chains alongside other strategic applications.

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Filed Under: Batteries, Technology News
Tagged With: batteries, departmentofenergy
 

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