DOE Critical Minerals Initiatives: New Offices, Major Funding Programs, and Pending Battery Materials FOA

DOE Critical Minerals Initiatives: New Offices, Major Funding Programs, and Pending Battery Materials FOA
Piles Of Mined And Refined Rare Earth Elements Generative Ai Generative Ai
Advanced Technology & Defense Competitive Intelligence & Appropriations Emerging Research Institutions Federal Agency & Foundation Engagement Government Relations Grants Strategy Uncategorized February 5, 2026
Derryck Hains

Derryck Hains

Derryck Hains is a Director of Advanced Technology and Government Relations at McAllister & Quinn. He provides strategic intelligence support to the firm’s industry clients

New Federal Programs Accelerate Funding for Critical Minerals and Rare Earth Projects

The Trump administration is taking a whole-of-government approach to solving the critical minerals and rare earth elements supply challenges in the United States. Through the National Energy Dominance Council (NEDC), the government is coordinating grant, loan, and land-lease programs across several agencies. The administration is moving fast: response deadlines can be as short as 30 days, requiring organizations to prepare as early as possible to harness federal energy grant programs and other strategic investments.

U.S. Government Boosts Critical Materials Projects Through DOE Budget and Inter‑Agency Funding Programs

Critical materials and rare earth elements funding is being pioneered across multiple federal agencies including the Departments of Energy, Labor, Defense, Interior, the Export-Import Bank, and others through the NEDC, which coordinates inter-agency action. Loan mechanisms through both the Pentagon and DOE, including the Office of Strategic Capital (OSC), Development Finance Corporation (DFC), Export-Import bank (EXIM), and others, provide strategic capital financing for minerals and materials. 

The approved 2026 Department of Energy Budget builds on previously approved funds and encourages DOE to continue exploring available lands and new technologies to fully leverage the domestic resources that are available. Emphasis is placed on the development of commercially viable recovery technologies that can reclaim minerals from production offtakes and wastewater, including from lignite.

U.S. Department of Energy Accelerates Critical Minerals Funding, Delays Largest Battery Recycling Program

The Department of Energy (DOE) kicked off its major critical minerals push in August of 2025, announcing their intent to release four funding opportunities targeting different segments of the supply chain, ranging from extractors and refiners, to recycling and reclamation. In the following months, DOE released some of the anticipated funds along with the previously unannounced Mine of the Future program. However, the Battery Materials Processing and Battery Manufacturing and Recycling program, the largest announced program totaling $500 million, has yet to be published.

Critical minerals remain a key cornerstone of DOE’s work in 2026, as evidenced by the department’s recently announced reorganization, including the newly established Office of Critical Minerals and Energy Innovation and elimination of the Offices of Efficiency and Renewable Energy, Manufacturing and Energy Supplies Chains, and Fossil Energy and Carbon Management, amongst others. This, along with the rebranding of the Loans Program Office to the “Energy Dominance Financing Program (EDF)”,  solidifies the agency’s focus in 2026.

See the list of existing and planned funding programs and mechanisms below:

  • Battery Materials Process and Battery Manufacturing and Recycling Grants ($500 million)

    The proposed funding will support commercial and demonstration facilities that include both traditional battery materials (lithium, graphite, nickel, copper, aluminum) as well as other commercially available rare earth elements. Awards range from $50 - $200 million.

    Status: Notice of Opportunity Full release TBD

  • Mines & Metals Capacity Expansion – Piloting Byproduct Critical Minerals and Materials Recovery at Domestic Industrial Facilities ($275 million)

    This Office of Fossil Energy and Carbon Management (FECM) program will provide funding for industrial facilities that have the potential to produce valuable mineral byproducts from existing industrial processes. A 20% applicant cost-share is required for this opportunity.

    Status: Application window closed January 15, 2026 Notice of Opportunity

  • Critical Minerals and Materials (CMM) Accelerator ($50 million)

    The CMM accelerator NOI was released under the Office of Advanced Materials and Manufacturing Technologies Office’s (AMMTO) and is designed to promote technology maturation and unlock capital investments and facilitate domestic commercialization. This AMMTO program has several areas of interests including “processes in the rare-earth magnet supply chain; processes to refine and alloy gallium, gallium nitride, germanium, and silicon carbide for use in semiconductors; cost-competitive technologies for direct lithium extraction and separation; and critical-material separation technologies that allow for the co-production of useful products from byproducts and scrap.”

    Status: Notice of Intent Full release TBD

  • Mine of the Future – Proving Ground Initiative ($80 million)

    The program from DOE’s Office Manufacturing and Energy Supply Chains (MESC) aims to enhance the domestic supply of Rare Earth Elements (REEs) by demonstrating the commercial viability of methods for domestically refining and recovering REEs from mine tailings, deleterious material, and waste streams. Academic partnerships and a 50% applicant cost-share are required for this opportunity.

    Status: Closed on January 20, 2026 Notice of Funding Opportunity

  • Rare Earths Demonstration Facility ($135 million)

    The program from DOE’s Office Manufacturing and Energy Supply Chains (MESC) aims to enhance the domestic supply of Rare Earth Elements (REEs) by demonstrating the commercial viability of methods for domestically refining and recovering REEs from mine tailings, deleterious material, and waste streams. Academic partnerships and a 50% applicant cost-share are required for this opportunity

    Status: Closed on January 20, 2026 Notice of Funding Opportunity

Contact Us