DOE Announces $500 Million for Critical Materials Manufacturing
Summary
The U.S. Department of Energy announced a Notice of Funding Opportunity for up to $500 million to expand domestic critical mineral and materials processing and battery manufacturing and recycling. This funding aims to strengthen supply chains for defense, grid resilience, transportation, and manufacturing.
What changed
The U.S. Department of Energy (DOE) has announced a Notice of Funding Opportunity (NOFO) making up to $500 million available to bolster domestic capabilities in critical mineral and materials processing, as well as derivative battery manufacturing and recycling. This initiative, managed by the Office of Critical Minerals and Energy Innovation (CMEI), is the third round of funding under DOE's Battery Materials Processing and Battery Manufacturing and Recycling programs. It seeks projects focused on increasing U.S. processing capacity from raw feedstocks, enhancing recycling of battery materials, and expanding domestic manufacturing of strategic battery components.
Companies and entities involved in critical materials processing, battery manufacturing, and recycling should review the NOFO for eligibility requirements and application procedures. A webinar is scheduled for March 26, 2026, to provide further details. While no specific compliance deadline is mentioned for entities to act by, the funding opportunity itself represents a significant push to onshore critical supply chains, with potential implications for market competitiveness and national security. Non-binding letters of intent are also mentioned as a preliminary step.
What to do next
- Review the Notice of Funding Opportunity (NOFO) for eligibility and application requirements.
- Register for and attend the informational webinar on March 26, 2026.
- Consider submitting a non-binding letter of intent if applicable.
Source document (simplified)
Energy Department Announces $500 Million to Strengthen Domestic Critical Materials Processing and Manufacturing
The U.S. Department of Energy’s Office of Critical Minerals and Energy Innovation today announced a Notice of Funding Opportunity for up to $500 million to expand U.S. critical mineral and materials processing and derivative battery manufacturing and recycling.
Office of Critical Minerals and Energy Innovation
March 13, 2026
Funding will expand domestic manufacturing of battery supply chains for defense, grid resilience, transportation, manufacturing and other industries
WASHINGTON— The U.S. Department of Energy’s (DOE) Office of Critical Minerals and Energy Innovation (CMEI) today announced a Notice of Funding Opportunity (NOFO) for up to $500 million to expand U.S. critical mineral and materials processing and derivative battery manufacturing and recycling.
Assistant Secretary of Energy (EERE) Audrey Robertson is currently in Japan meeting with regional allies at the Indo-Pacific Energy Security Ministerial and Business Forum (IPEM) to advance shared efforts on supply chain resilience and energy security issues. Her engagements at IPEM underscore the importance of close cooperation with partners as the United States strengthens its supply chain through this NOFO.
“For too long, the United States has relied on hostile foreign actors to supply and process the critical materials that are essential in battery manufacturing and materials processing,” said U.S. Energy Secretary Chris Wright. “Thanks to President Trump’s leadership, the Department of Energy is playing a leading role in strengthening these domestic industries that will position the U.S. to win the AI race, meeting rising energy demand, and achieve energy dominance.”
“I am delighted to be in Japan meeting with our allies, underscoring the important connection between critical materials and energy security,” said Assistant Secretary of Energy (EERE) Audrey Robertson. “Critical minerals processing is a vital component of our nation’s critical minerals supply base. Boosting domestic production, including through recycling, will bolster national security and ensure the United States and our partners are prepared to meet the energy challenges of the 21st century.”
Funding awarded through this NOFO will support demonstration and/or commercial facilities for processing, recycling, or utilizing for manufacturing of critical materials which may include traditional battery minerals such as lithium, graphite, nickel, copper, aluminum, as well as other minerals that are contained within commercially available batteries.
This is the third round of funding issued through DOE’s Battery Materials Processing and Battery Manufacturing and Recycling programs. DOE is seeking projects in the following topic areas for applicants:
- Domestic Critical Minerals Processing from Raw Feedstocks: Increase U.S. processing capacity for critical minerals and materials for use in advanced batteries.
- Domestic Critical Materials Recycling: Increase recovery of battery critical minerals through recycling of manufacturing scrap and/or off-specification or end-of-life batteries.
- Domestic Battery Materials and Component Manufacturing: Increase domestic manufacturing capacity for strategic battery materials, components and technologies. A webinar with additional information on this funding opportunity will be held at 1:00 PM ET on March 26, 2026. Register for the informational webinar.
Non-binding letters of intent are requested by 5:00 p.m. ET on March 27, 2026, to assist the Department in planning for the review process. Applications must be submitted by 5:00 p.m. ET on April 24, 2026.
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Tags:
- Critical Materials and Minerals
- Funding Opportunities
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