The Department of Energy on Monday announced a new $134 million funding opportunity to strengthen U.S. access to rare earth elements, the minerals essential for manufacturing everything from electric motors to advanced defense systems.
The initiative is aimed at expanding the ability to recover and refine these materials inside the United States, reducing reliance on foreign suppliers.
Rare earth minerals such as neodymium, praseodymium, terbium, and dysprosium play a central role in high-performance magnets, power systems, and modern electronics.
Currently, most global processing takes place overseas, creating supply vulnerabilities that U.S. officials say pose economic and national security risks.
Energy Secretary Chris Wright said in a statement that the investment reflects a renewed push to rebuild America's industrial base.
"For too long, the United States has relied on foreign nations for the minerals and materials that power our economy," Wright said.
"Thanks to President [Donald] Trump's leadership, we are reversing that trend, rebuilding America's ability to mine, process, and manufacture the materials essential to our energy and economic security."
The new funding opportunity will support projects that demonstrate how rare earths can be commercially recovered from waste materials such as mine tailings, e-waste, and other unconventional sources.
Energy Department officials said tapping these overlooked feedstocks can help create a stable, long-term mineral supply without depending on foreign processing.
The announcement builds on a broader department strategy outlined in August, when the department previewed nearly $1 billion in upcoming funding opportunities across the critical minerals sector.
Those proposals included federal support for mining, refining, semiconductor-related materials, lithium extraction, battery recycling, and new technologies to recover minerals from industrial wastewater.
The funding opportunity comes from the department's Office of Critical Minerals and Energy Innovation's Rare Earth Demonstration Facility program, which is designed to demonstrate full-scale, integrated rare earth extraction and separation facilities in the United States.
Several additional programs aim to accelerate processing technologies, expand domestic production of battery materials, and help American industries convert waste streams into valuable mineral products.
Officials say rare earth mineral development is key to strengthening U.S. manufacturing and ensuring the country can meet rising demand for energy technologies without relying on overseas suppliers.
The department will host a webinar for applicants on Dec. 9.
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