U.S. Energy Department Announces $355 Million Funding to Boost Critical Mineral Production and Modern Mining Technologies

The U.S. Department of Energy on Nov. 14 launched two funding opportunities totaling $355 million to expand domestic production of critical materials and support the development of advanced mining systems. The DOE’s Office of Fossil Energy issued the actions as part of a broader federal strategy to strengthen supply chains that support energy production, manufacturing, transportation and national defense.

The first offering under the Mines and Metals Capacity Expansion provides up to $275 million for pilot projects that extract minerals from coal-based resources and industrial waste streams. The effort aims to show that American facilities can recover market-ready materials from byproducts already produced across the industrial landscape. The agency outlined two focus areas. One seeks to accelerate production using coal-based feedstocks linked to legacy infrastructure. The other invites proposals from sectors that generate byproducts or waste that can supply critical materials for clean energy systems, advanced manufacturing and defense applications.

Federal officials expect the pilots to reduce waste volumes, support new domestic supply chains and lessen dependence on foreign sources. The initiative also aligns with the federal plan announced in August to invest $1 billion in mining, processing and manufacturing systems that reinforce energy security.

The second offering provides up to $80 million for the Mine of the Future – Proving Ground Initiative. The program will establish field testing sites where developers can assess next-generation mining technologies under real-world conditions. The agency noted that field environments are essential for evaluating performance and scaling technologies beyond early-stage research. The funding will support projects focused on drilling, sensing, automation and other systems designed to modernize operations and improve safety.

The initiative is expected to expand training opportunities for miners and engineers as companies integrate new systems. The agency expects the initiative to improve competitiveness in the domestic mining sector and help accelerate commercialization of next-generation extraction methods.

Applications for both funding opportunities are due by Dec. 15, 2025.