U.S. Energy Department Announces $500 Million to Expand Critical Minerals Processing and Battery Recycling

The U.S. Energy Department on March 13 announced up to $500 million in funding to expand domestic processing of critical minerals and strengthen the nation’s battery materials supply chain. The funding opportunity through the department’s Office of Critical Minerals and Energy Innovation would support demonstration and commercial-scale facilities that process, recycle, or manufacture battery materials used in advanced energy technologies.

The funding aims to address supply chain vulnerabilities by increasing U.S. capacity to process and recover critical minerals used in batteries, including lithium, graphite, nickel, copper, and aluminum. The initiative also covers additional minerals found in commercially available batteries that are essential to electric vehicles, grid-scale storage, and other energy applications. By supporting domestic processing and manufacturing, the department is seeking to reduce reliance on overseas supply chains and accelerate deployment of advanced battery technologies.

Projects selected through the funding round may focus on three primary areas. The first targets domestic processing of critical minerals from raw feedstocks to expand U.S. refining and materials production capacity for battery manufacturing. The second area supports recycling initiatives designed to recover valuable minerals from manufacturing scrap, off-specification battery materials, and end-of-life batteries. The third category focuses on expanding U.S. manufacturing capacity for strategic battery materials, components, and related technologies.

The announcement marks the third funding round under the department’s Battery Materials Processing and Battery Manufacturing and Recycling programs. Previous funding rounds have sought to accelerate development of a domestic battery supply chain capable of supporting the rapid growth of electric vehicles and grid-scale energy storage.

The department is requesting non-binding letters of intent from potential applicants by March 27, 2026, to help guide the review process. Full project applications are due by April 24, 2026.