US launches $500M initiative to bolster critical minerals supply chain

The United States Department of Energy (DOE) has announced a $500 million funding opportunity aimed at expanding domestic processing of critical minerals and boosting battery manufacturing and recycling capacity.

The funding, unveiled by the DOE’s Office of Critical Minerals and Energy Innovation, will support demonstration and commercial projects focused on processing raw materials, recycling battery components, and manufacturing battery materials within the United States.

According to the department, the initiative seeks to strengthen domestic supply chains for minerals essential to advanced batteries, including lithium, graphite, nickel, copper, and aluminium, as well as other materials found in commercially available batteries.

U.S. Energy Secretary Chris Wright said the programme is intended to reduce reliance on foreign suppliers of critical materials used in battery production and other strategic industries.

“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,” Wright said, adding that strengthening domestic capacity would help the country meet rising energy demand and support technological innovation.

Assistant Secretary of Energy Audrey Robertson made the announcement while attending the Indo-Pacific Energy Security Ministerial and Business Forum in Japan, where she is engaging with regional partners on energy security and supply chain resilience.

Robertson emphasised that expanding critical minerals processing and recycling is essential for strengthening energy security and preparing for future energy challenges.

The funding represents the third round of support under the DOE’s Battery Materials Processing and Battery Manufacturing and Recycling programmes.

Applications will focus on three areas: domestic critical minerals processing from raw feedstocks, recycling of battery materials, and manufacturing of battery components and technologies.

The Department of Energy will host an informational webinar on March 26, 2026, while letters of intent are due by March 27, and full applications must be submitted by April 24, 2026.