The U.S. Energy Department is offering up to $134 million to organizations that can show they have real-world ways to pull rare-earth elements from waste materials like discarded electronics, mine tailings, and coal byproducts.
The funding is aimed at strengthening the domestic supply of rare earths, which are necessary for electric vehicles, defense systems, electronics, and clean energy equipment. The U.S. still relies heavily on foreign countries, especially China, for much of this material.
Federal officials say they want projects that can move past laboratory work and operate at a commercial scale. The agency is looking for ways to deliver meaningful production levels for manufacturers in the United States.
Many proposals are expected to focus on recycling and recovery from existing waste streams. That includes old electronics and industrial byproducts that would typically be discarded.
The funding is part of a broader federal push to rebuild supply chains for critical minerals. Recent efforts have targeted batteries, semiconductors, and clean energy components, all of which depend on reliable access to key raw materials.
For supply chain leaders, the initiative adds to the growing pressure to reduce dependence on overseas suppliers and prepare for a future in which more essential materials are produced in the United States.
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