On December 1, 2025, the Critical Minerals & Energy Innovation (CMEI) Office of the U.S. Department of Energy (DOE) released a Notice of Funding Opportunity (NOFO) offering up to $134 million to bolster the domestic rare earth supply chain. Through this funding, the DOE will support projects that can demonstrate the commercial viability of recovering and refining rare earth elements from unconventional feedstocks (including mine tailings, electronic waste, and other waste streams). This initiative aims to reduce U.S. dependence on foreign resources, enhance national security, and promote American energy independence.
U.S. Energy Secretary Chris Wright stated that for too long, the United States has relied on foreign countries for minerals and raw materials that support their economies. Now they will rebuild America’s capacity to mine, process, and manufacture materials critical to energy and economic security.
According to the official website of CTIA GROUP LTD, in 2024 the United States is expected to produce 45,000 tons of rare earth concentrates, increased by 8.17% year-on-year; produce 1,300 tons of rare earth compounds and metals, increased by 420% year-on-year; import 8,000 tons of rare earth compounds, decreased by 10.31% year-on-year; import 220 tons of ferrocerium and alloys, decreased by 15.06% year-on-year; and import 90 tons of rare earth metals, scandium, and yttrium, decreased by 81.09% year-on-year. From 2020–2023, sources of U.S. rare earth imports for compounds and metals were: China 70%; Malaysia 13%; Japan 6%; Estonia 5%; and other countries and regions 6%. Compounds and metals imported from Estonia, Japan, and Malaysia originate from concentrates and chemical intermediates produced in Australia, China, and elsewhere.
Rare earth elements such as praseodymium, neodymium, terbium, and dysprosium are critical components of advanced manufacturing, defense systems, and high-performance magnets used in power generation and electric motors. By investing in domestic recovery and processing of rare earth elements, the U.S. Department of Energy is committed to securing America’s energy independence, enhancing economic competitiveness, and ensuring long-term resilience of national supply chains.
This funding opportunity stems from the Rare Earth Demonstration Facility project of the DOE’s Critical Minerals & Energy Innovation Office, which aims to demonstrate full-scale integrated rare earth extraction and separation facilities within the United States. This NOFO follows a notice of intent released by the DOE in August. More information about this funding opportunity will be provided in a webinar to be held at 1:00 p.m. Eastern Time on December 9, 2025. To assist the DOE in planning the review process, non-binding and non-mandatory letters of intent should be submitted by December 10, 2025, Eastern Time. Full applications must be submitted by January 5, 2026.
