DOE launches $1 billion fund to reclaim America’s critical mineral supply chains
Aug 14, 2025
US Department of Energy (DOE) announced a nearly $1 billion funding package designed to overhaul how critical minerals and materials are mined, processed, and manufactured domestically.
These minerals, essential for everything from electric vehicle batteries and semiconductors to military equipment and renewable energy technology, are at the heart of modern industry and national security. For decades, the United States has relied heavily on foreign supply chains, particularly China, for these materials.
DOE Secretary Chris Wright underscored the urgency of change, stating, “For too long, the United States has relied on foreign actors to supply and process the critical materials that are essential to modern life and our national security.”
The funding is spread across several targeted programs to tackle different bottlenecks in the domestic supply chain with $50 million flowing through the Critical Minerals and Materials (CMM) Accelerator program to help mature extraction and processing technologies while attracting private investment.
The Office of Fossil Energy and Carbon Management will oversee $250 million aimed at transforming industrial sites, including coal and waste-handling facilities, into hubs for recovering valuable mineral byproducts, while the Office of Manufacturing and Energy Supply Chains (MESC) will invest $135 million to strengthen rare earth element supply chains, focusing on refining and recovering materials from mine tailings and waste streams.
An additional $50 million will go toward refining and alloying high-tech materials such as gallium, germanium, and silicon carbide, all vital for semiconductors and rare earth magnets.
The timing of this initiative reflects the growing strategic competition over critical materials. Dependence on foreign suppliers has long left US industries vulnerable to supply disruptions, price shocks, and geopolitical tensions.
By repurposing existing industrial infrastructure for mineral recovery rather than starting from scratch, the DOE is taking a pragmatic approach that can accelerate results while keeping costs in check. The plan also aligns with national security priorities, ensuring that technologies critical to defense, transportation, and clean energy remain secure from foreign interference.
This funding package builds on President Trump’s Executive Order Unleashing American Energy and dovetails with the DOE’s broader Critical Minerals and Materials Program, which aims to scale domestic production, recycling, and supply chain resilience. The 2026 Critical Materials Assessment, currently open for public comment, will further refine which minerals are most vital to the nation’s future and guide the next wave of investments.
In essence, this nearly $1 billion commitment is more than a financial boost, it’s a strategic reset. By channeling resources into high-impact, targeted projects, the United States is taking a tangible step toward restoring control over the materials that power its economy, defense, and technological innovation. This is not just about securing minerals; it’s about securing the nation’s future.
