DOE announces $500 million funding opportunity for domestic critical minerals processing, battery manufacturing, and recycling

On March 13, 2026, the United States Department of Energy (DOE)’s Office of Critical Minerals and Energy Innovation announced a Notice of Funding Opportunity (NOFO) making available up to $500 million to expand domestic critical mineral and materials processing, battery manufacturing, and recycling.

The NOFO, issued through DOE's Manufacturing Deployment Office under Section 40207 of the Infrastructure Investment and Jobs Act, represents the third funding round under DOE's Battery Materials Processing and Battery Manufacturing and Recycling programs. According to DOE, the program is intended to increase US supply chain resilience and reduce reliance on foreign supply chains by up to 15 percent by 2030 for certain critical materials and advanced battery components.

Funding allocation

The program allocates funding across three topic areas:

• Domestic critical materials processing from raw feedstocks. Approximately $200 million is allocated for two to four projects focused on processing lithium, nickel, and cobalt from raw feedstocks into battery-grade materials.
  
  
• Domestic critical materials recycling. Approximately $100 million is allocated for one to two projects focused on increased recovery of critical minerals from end-of-life batteries and manufacturing scrap, with priority given to black mass production and the recovery of graphite, nickel, cobalt, and rare earth materials.
  
  
• Domestic battery materials and component manufacturing. Approximately $200 million is allocated for one to four projects aimed at expanding domestic manufacturing capacity for strategic battery components, including synthetic graphite anodes, cathode active materials, and specialty metals such as copper, aluminum, and lithium.

All three topic areas require a minimum 50-percent private cost share, and funded projects are expected to be completed within approximately 36 months.

Eligibility

The NOFO is primarily directed toward domestic entities, including institutions of higher education, nonprofit and for-profit private entities, state and local governments, and consortia of those entities. Foreign entities are generally ineligible to apply as recipients or subrecipients; however, DOE may approve a waiver in limited circumstances to permit a foreign entity’s participation. Any such waiver would require a showing, among other things, that the participation is in the best interest of US industry and economic development, that appropriate data protection and export control protocols are in place, and that the work will be conducted within the US.

In evaluating applications, DOE intends to prioritize entities that are located and operate in the US, are owned by a US entity, deploy North American-owned intellectual property and content, participate in consortia or industry partnerships, and do not use battery materials supplied by or originating from a foreign entity of concern. DOE has also indicated that it may seek equity interests or warrants in recipient entities, either at the time of award or in the future.

Business implications

For companies involved in, or looking to become involved in, the processing, refining, or recycling of critical minerals, this NOFO provides an opportunity to access federal cost-shared funding for facilities and supply chain infrastructure. The NOFO emphasizes securing offtake agreements, commercial readiness, and reduced reliance on foreign supply chains; companies with existing processing or recycling capabilities, proprietary technology, or feedstock supply arrangements may consider how their projects address these elements and whether to apply directly as domestic entities or participate as subrecipients or teaming partners through DOE's Teaming Partner List.

Look ahead and key deadlines

As the US government continues to emphasize secure and diversified critical minerals supply chains, companies may wish to assess how their project profiles, technology platforms, and supply chain strategies align with the NOFO's objectives and DOE's broader supply chain security priorities.

DOE anticipates it will issue selection notifications in the second quarter of calendar year 2026, with awards expected in the third quarter. Applications for the program must be submitted by 5:00pm ET on April 24, 2026, with non-binding letters of intent requested by March 27, 2026.

Learn more

For more information, please contact the authors.