The US Department of Energy has selected seven projects for $500 million in potential federal funding as part of a third round of investment aimed at expanding domestic critical mineral processing, battery manufacturing and recycling capacity. This latest tranche of US Critical Minerals Funding targets the middle and downstream stages of the battery supply chain, where raw materials are refined into battery-grade products and fed into component and cell manufacturing.
Securing domestic sources of critical minerals is only part of the challenge facing American supply chains. Those materials must also be processed, refined and manufactured into usable forms before they reach end markets across energy, industrial and national security sectors. Reducing reliance on foreign sources for that processing work has become a clear federal priority, and this round of US Critical Minerals Funding is structured to address that gap directly.
DOE Expands US Critical Minerals Funding
Created under the Infrastructure Investment and Jobs Act, DOE’s Battery Materials Processing and Battery Manufacturing and Recycling programmes each carry $3 billion in authorised funding. Through the first two rounds, beginning in October 2022 and followed by a second in September 2024, DOE awarded grants to 39 projects. Together, those rounds represent nearly $5 billion in federal grants and roughly $16 billion in combined investment across the domestic battery supply chain.
The third round builds on that foundation, making $200 million available for critical mineral processing from raw feedstocks, $100 million for recovering materials from end-of-life batteries and manufacturing scrap, and $200 million for battery materials and component manufacturing. All seven projects were selected for potential funding, meaning awards have not yet been finalised.
Lithium, Cobalt and Recycling Projects Gain Support
On the critical mineral processing side, a commercial lithium extraction and refining facility at West Promontory, Utah, on the northeastern shore of the Great Salt Lake, was selected for a $100 million federal share. The facility is designed to produce battery-grade lithium carbonate while returning processed brine to the lake with no net water loss. Its first phase aims to double current US lithium production. Separately, a commercial cobalt refinery was selected for a $100 million federal share. The cobalt refining facility would produce battery-grade cobalt sulfate and related materials using established refining technology, with the industrial site still to be determined.
Battery recycling and materials recovery also feature prominently in this round of US Critical Minerals Funding. A $100 million federal share was allocated to a facility in the southeastern United States that would refine black mass from end-of-life lithium-ion batteries and manufacturing scrap into high-purity metals and battery-grade materials. A further $50 million federal share supports a demonstration facility in Commerce, Georgia, focused on recovering nickel-containing cathode material from battery manufacturing scrap using a low-temperature plasma process.
Funding Targets Downstream Battery Supply Chains
The remaining selections address advanced battery materials and component manufacturing. A Gulf Coast facility was selected for a $50 million federal share to produce battery-grade ethylene carbonate, a key ingredient in lithium-ion battery electrolytes. Another project, selected for $50 million, would scale pilot-level technology to produce ultra-thin lithium-metal films and prelithiated materials for higher-energy, faster-charging batteries. A further $50 million federal share supports silicon-anode lithium-ion electrode and cell manufacturing in California, using domestically sourced metallurgical silicon in place of imported graphite.
This latest round of US Critical Minerals Funding reflects a continued federal effort to build out domestic processing and downstream capacity. As Assistant Secretary of Energy Audrey Robertson stated, “DOE is taking decisive action to secure the critical supply chains necessary to power our nation. These projects underscore DOE’s commitment to driving innovation, reducing reliance on foreign sources, and promoting American energy dominance.”