DOE Proposes $10M for Minerals R&D

The U.S. Department of Energy's Office of Critical Minerals and Energy Innovation proposed awards totaling $10 million on August 26. The funding is for seven projects aimed at recovering and refining critical materials needed for key energy technologies.

Led by the agency's Critical Materials Innovation Hub, the projects will focus on early-stage research and development. The work pertains to the recovery of heavy rare earths, gallium, copper, and other materials.

Assistant Secretary of Energy Audrey Robertson stated the projects will leverage the Hub's expertise to address key technical challenges. "This work will unlock new production methods that strengthen domestic supply chains and ensure American manufacturers have access to the materials they need to compete and lead," Robertson said.

Project Focus Areas

The seven projects selected for award negotiations target specific extraction and refinement challenges. Their focus areas are as follows:

Critical Material Applications

A DOE spokesperson outlined the vital applications for the targeted materials. Gallium is found in high-voltage semiconductors, light-emitting diodes, high-strength magnets, space solar photovoltaics, integrated circuits, and optoelectronics.

Copper is used in electric grid cables, machines and transformers for power generation and distribution, electronics, and batteries. Heavy rare earth elements, such as dysprosium and terbium, improve the performance of high-strength magnets for wind turbines and electric vehicles.

The spokesperson said DOE's investments will ensure American manufacturers have access to vital materials. They added that conventional recovery and refining methods rely on decades-old processes ripe for innovation to lower costs and reduce health and environmental impacts.

Broader Funding Context

This is the latest DOE award meant to bolster the domestic critical minerals supply chain. Earlier in August, the agency announced $500 million for seven projects to expand domestic critical mineral and material processing, battery manufacturing, and recycling capacity.

That award was the DOE's third round of funding from its Battery Materials Processing and Battery Manufacturing and Recycling programs. The grants support battery materials processing, recycling, and manufacturing projects including demonstration projects, construction of commercial-scale facilities, and retrofitting existing facilities.

In December 2025, the DOE announced it was making up to $134 million available for projects demonstrating the commercial viability of recovering rare-earth minerals from mine tailings, discarded electronics, and other waste. The U.S. Department of Defense has also funded rare-earth minerals projects, recently signing multiple conditional loan agreements valued at more than $2 billion through its Office of Strategic Capital.