Trump administration unveils nearly $1 billion plan to boost US critical minerals supply

The Trump administration is moving to significantly bolster America’s domestic supply of critical minerals and materials with a proposed funding package worth nearly $1 billion, the US Department of Energy (DOE) announced on August 13. The plan aims to advance and scale mining, processing, and manufacturing technologies vital to industries ranging from electric vehicle batteries to semiconductors, sectors currently dominated by China and other foreign suppliers.

“For too long, the United States has relied on foreign actors to supply and process the critical materials that are essential to modern life and our national security,” said Energy Secretary Chris Wright. “Thanks to President Trump’s leadership, the Energy Department will play a leading role in reshoring processing and expanding our domestic supply of these indispensable resources.”

Four major initiatives under funding plan

The DOE’s Office of Manufacturing and Energy Supply Chains (MESC) will oversee the largest portion of the funding, offering up to $500 million to expand US critical minerals processing, battery manufacturing, and recycling capabilities. Another $135 million will be directed toward establishing a Rare Earth Elements Demonstration Facility to prove the commercial viability of domestic refining and recovery methods from mining tailings and waste streams.

The Office of Fossil Energy and Carbon Management plans to provide $250 million in assistance to industrial plants, including coal facilities, to pilot technologies for recovering valuable mineral byproducts from existing processes. In addition, the DOE’s Advanced Materials and Manufacturing Technologies Office will offer up to $50 million under its Critical Minerals and Materials Accelerator programme to support technology maturation in areas such as rare-earth magnet supply chains, direct lithium extraction, and refining of gallium, germanium, and silicon carbide for semiconductor use.

Tapping unconventional sources

The Advanced Research Projects Agency-Energy (ARPA-E) will also advance its $40 million Recover programme, which focuses on extracting critical minerals from industrial wastewater. The initiative could unlock domestic supplies that would otherwise be discarded, complementing traditional mining. The DOE said these initiatives align with President Trump’s executive order on maximising US energy development, reinforcing supply chain security and industrial competitiveness. Funding opportunities will require recipients to match at least 50% of project costs, ensuring private-sector participation.

By scaling domestic capabilities, officials say the US can reduce strategic vulnerabilities, create jobs, and secure key materials essential for the nation’s energy and technology future.

(With inputs from agencies)