On August 13, 2025, the Department of Energy (DOE) announced its intent to issue notices of funding opportunities (NOFOs) totaling nearly $1 billion to support enhancing and expanding technologies for mining, processing, and manufacturing at crucial points in the supply chains of critical minerals and materials. This announcement follows the Unleashing American Energy executive order issued in January 2025, previously summarized here. DOE’s NOFOs are intended to support the establishment of a more reliable, stable, and cost-effective supply of critical minerals and materials, which the agency considers fundamental for maintaining America’s energy dominance, safeguarding US national security, and boosting US industrial competitiveness.

DOE announced that it will issue NOFOs in the following four key areas and announce Advanced Research Projects Agency-Energy (ARPA-E) awards:

1. Critical Minerals and Materials Accelerator

DOE’s Office of Energy Efficiency and Renewable Energy’s (EERE) Advanced Materials and Manufacturing Technologies Office (AMMTO) published a notice of intent (NOI) to issue a NOFO for up to $50 million to support American, industry-led partnerships that will develop and test new technologies to process critical minerals and materials. The $50 million will be deployed through the Critical Minerals and Materials (CMM) Accelerator program. Technologies developed in the CMM Accelerator program are expected to have been only validated in laboratory settings so far and have a path to commercialization within 3 to 7 years. According to the NOI, this NOFO is expected to be available on or around October 2025 via eXCHANGE.

The EERE NOI identifies four areas of interest that may be included in the forthcoming NOFO:

• Processes in the rare earth magnet supply chain including production from post-consumer and post-industrial secondary sources;
• Processes to refine and alloy gallium, gallium nitride, germanium, and silicon carbide for use in semiconductors;
• Technologies for cost-competitive direct lithium extraction and separation; and
• Technologies that improve cost-competitiveness of critical material separation technologies through coproduction of value-added products from byproducts and scrap.

DOE intends to award multiple cooperative agreements, with each award having an anticipated duration of around 1 to 4 years. Additional information regarding the anticipated terms of the NOFO are available in the NOI. EERE advises interested applicants to start the process early and provides registration instructions in the NOI.

2. Mines and Metals Capacity Expansion – Piloting Byproduct Critical Minerals and Materials Recovery at Domestic Industrial Facilities

DOE’s Office of Fossil Energy and Carbon Management (FECM) published an NOI to issue a NOFO for up to $250 million focused on investments in US industrial facilities that have the potential to generate feasible mineral byproducts from their current industrial operations. This NOFO is expected to be issued in the last quarter of 2025.

 The FECM NOI identifies two topic areas for the NOFO:

• Mines and Metal Pilots – Coal-Based Industry ($75 million) for pilot projects for critical minerals and materials recovery with coal industry-related feedstocks. This topic area targets projects expected to support sustained commercial operation for at least five years.
• Mines & Metals Pilots – All Industry ($175 million) for pilot projects for critical minerals and materials recovery with other feedstocks. Any domestic industrial facility with potential byproduct streams that include critical mineral and material products may qualify.

Both topic areas emphasize near-term commercialization and production of sustainable market-ready critical minerals and materials (e.g., cobalt, nickel, magnesium, manganese, gallium, germanium, lithium, and rare earth elements (REEs)). Individual awards under this NOFO are expected to range from $10 million to $50 million.

The NOI provides further details regarding applying for this NOFO. Similar to the EERE NOI, interested applicants are encouraged to establish and keep current all required registrations; FECM provides details on these registrations in the NOI.

3. Rare Earth Elements (REEs) Demonstration Facility

The Office of Manufacturing and Energy Supply Chains (MESC) published an NOI to issue a NOFO for up to $135 million of federal funding for the design, construction, and operation of a REE demonstration facility. The purpose of the REE demonstration facility is to demonstrate the extraction, separation, and purification of REEs from non-traditional feedstock sources to yield high-purity rare earth metals. Non-traditional feedstocks include acid mine drainage, mining debris, electronic waste, or other detrimental materials generated by mining or industrial activities.

At this stage, MESC envisages collaboration between academia and industry and will require all applicants to include an academic partner and a cost-sharing arrangement. Additional information regarding the anticipated terms of the NOFO are available in the NOI. Similar to the aforementioned NOIs, MESC encourages interested applicants to prepare for the release of the NOFO by completing the registration requirements detailed in the NOI.

4. Battery Materials Processing and Battery Manufacturing and Recycling Grant Program

MESC also published an NOI to issue a NOFO to make up to $500 million in federal funding available to support demonstration and/or commercial facilities involved in processing, recycling, or using critical materials for manufacturing. These critical materials may encompass conventional battery minerals like lithium, graphite, nickel, copper, and aluminum, and other minerals found in commercially available batteries, such as REEs.

MESC advises potential applicants to consider and pinpoint potential domestic customers for their materials or products in downstream markets. MESC will prioritize applicants who (1) refrain from using battery materials sourced from or originating with a Foreign Entity of Concern (FEOC) and (2) ensure that recovered critical materials are not exported to a FEOC. FEOCs identified include North Korea, China, Russia and Iran. At this stage, MESC anticipates individual awards will range from $50 million to $200 million, and the anticipated period of performance is expected to be around 24 to 48 months.

Additional information regarding the anticipated terms of the NOFO are available in the NOI, and potential applicants are encouraged to make all required registrations in advance of the NOFO, which MESC anticipates issuing in the coming months.

5. Recovering Critical Minerals from Industrial Wastewater

In fall 2025, the ARPA-E intends to announce selected projects for its $40 million Realize Energy-rich Compound Opportunities Valorizing Extraction from Refuse waters (RECOVER) program. This program focuses on expanding US access to ammonia and critical metals by identifying new ways to extract materials from domestic wastewater. The RECOVER program is designed to enhance conventional mining efforts by tapping into the large quantities of critical minerals that are found in domestic wastewater systems and thereby potentially fulfilling a substantial part of America’s demand with materials that might otherwise be wasted.

Conclusion

DOE’s announcement of these four NOIs and forthcoming ARPA-E awards mark a step forward in federal support for strengthening US supply chains for critical minerals and materials, encouraging advancements in mining, processing, and recycling technologies, and fostering innovation across vital sectors. As applicants prepare to engage with forthcoming NOFOs, it is important to note that the terms, timing, and amounts of the anticipated NOFOs are subject to change.