U.S. Invests $1 Billion to Boost Domestic Critical Minerals Supply

On August 13, 2025, the U.S. Department of Energy (DOE) announced a significant investment of nearly $1 billion aimed at enhancing domestic capabilities in mining, processing, and manufacturing technologies for critical minerals and materials. This initiative seeks to reduce the United States' reliance on foreign sources, particularly China, for essential components used in technologies such as electric vehicle batteries and semiconductors.

The funding is distributed across several key areas:

• Battery Materials Processing and Recycling: Up to $500 million is allocated to expand the processing, manufacturing, and recycling of battery materials, including lithium, graphite, nickel, copper, and aluminum.

• Industrial Byproduct Recovery: Approximately $250 million will support facilities capable of extracting critical minerals from existing industrial processes, such as coal operations.

• Rare Earth Elements Supply Chain: Up to $135 million is designated to strengthen the domestic supply chain for rare earth elements by demonstrating the commercial viability of refining and recovering these minerals from mining waste.

• Critical Minerals and Materials Accelerator: A $50 million program aims to advance technologies for processing critical materials, focusing on areas like the rare-earth magnet supply chain, semiconductor materials, and lithium extraction.

• Industrial Wastewater Recovery: An additional $40 million is intended to develop technologies for recovering critical minerals from industrial wastewater.

This comprehensive funding strategy is part of the Trump administration's broader effort to bolster national security and industrial competitiveness by securing a reliable domestic supply of critical minerals.

The United States has long been dependent on foreign sources for critical minerals essential to various industries, including defense, electronics, and renewable energy. China, in particular, has dominated the global supply chain, controlling approximately 60% of the world's production of rare earth minerals and materials. This dominance has raised concerns about supply chain vulnerabilities and national security risks.

In response, the U.S. has been actively seeking to diversify its supply chains and bolster domestic production capabilities. The recent DOE funding aligns with these efforts, aiming to establish a more resilient and self-sufficient supply chain for critical minerals.

The DOE's investment is expected to have several significant implications:

• Economic Growth: By investing in domestic mining and processing facilities, the initiative is likely to create jobs and stimulate economic activity in regions involved in these industries.

• National Security: Reducing dependence on foreign sources for critical minerals enhances national security by mitigating risks associated with supply chain disruptions.

• Technological Advancement: The funding supports research and development in advanced processing and recycling technologies, potentially leading to innovations that benefit multiple sectors.

This initiative is part of a broader trend of the U.S. government taking steps to secure critical mineral supply chains. For instance, in 2024, the Defense Production Act allocated $650 million for domestic rare earth element projects. Additionally, the CHIPS and Science Act included $500 million for supply chain security in strategic minerals.

The DOE's $1 billion investment marks a significant step toward reducing U.S. dependence on foreign sources for critical minerals, aiming to strengthen national security, foster economic growth, and drive technological innovation.