DOE Unleashes $500M To Break China's Grip On Critical Materials

Funding aims to develop secure domestic sources of critical minerals and battery materials

Mar. 17, 2026 at 2:38am

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The U.S. Department of Energy's Office of Critical Minerals and Energy Innovation (CMEI) has released a $500 million funding opportunity to advance the development of domestic processing of raw feedstocks, recycling of battery manufacturing scrap and end-of-life batteries, and the manufacturing of battery components and materials. The goal is to reduce reliance on foreign suppliers, particularly China, that have long dominated these critical mineral markets.

Why it matters

Securing domestic supplies of critical minerals and battery materials is essential for the growth of electric vehicles, grid storage, defense applications, and broader industrial needs. This funding represents the latest step in the federal government's ongoing effort to onshore these strategic supply chains.

The details

The new round of funding will support projects focused on domestic processing of raw feedstocks, recycling of battery manufacturing scrap and end-of-life batteries, and the manufacturing of battery components and materials. Key targeted minerals include lithium, graphite, nickel, copper, and aluminum, along with other materials used in commercial battery systems.

  • The DOE's Office of Critical Minerals and Energy Innovation (CMEI) released the Notice of Funding Opportunity on March 17, 2026.
  • Non-binding letters of intent are due March 27, 2026.
  • Full applications are due April 24, 2026.

The players

Department of Energy

The U.S. Department of Energy, which oversees the Office of Critical Minerals and Energy Innovation (CMEI) that is administering this funding opportunity.

Energy Secretary Wright

The current U.S. Energy Secretary who highlighted the need to reduce reliance on foreign suppliers, particularly China, for critical materials.

Assistant Secretary Audrey Robertson

The DOE Assistant Secretary who provided additional context on recent international engagements related to allied energy cooperation.

MP Materials

The operator of the Mountain Pass rare earth mine and downstream magnet processing facilities, which previously secured major Pentagon equity investment and price support.

USA Rare Earth (USAR)

A company that has advanced its Round Top, Texas project with substantial U.S. government funding and integrated processing capacity.

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What they’re saying

“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. Thanks to President Trump's leadership, the Department of Energy is playing a leading role in strengthening these domestic industries that will position the U.S. to win the AI race, meet rising energy demand, and achieve energy dominance.”

— Energy Secretary Wright

What’s next

Non-binding letters of intent are due on March 27, 2026, with full applications due on April 24, 2026. The DOE will review the applications and announce the selected projects for funding.

The takeaway

This latest round of DOE funding represents a significant step in the federal government's ongoing efforts to build resilient domestic supply chains for critical minerals and battery materials. By reducing reliance on foreign suppliers, particularly China, the U.S. aims to strengthen its position in key industries like electric vehicles, grid storage, and defense applications.