The U.S. Department of Energy is opening the door to as much as $134 million in new funding aimed at strengthening domestic supply chains for rare earth elements, materials that play an outsized role in everything from power generation to national defense.

The funding comes through a new Notice of Funding Opportunity from DOE’s Office of Critical Minerals and Energy Innovation. The focus is on projects that can prove the commercial viability of recovering and refining rare earth elements from unconventional sources, including mine tailings, electronic waste, and other discarded materials.

The goal is straightforward. Reduce U.S. reliance on foreign sources of rare earths while rebuilding domestic mining, processing, and manufacturing capacity. DOE officials say that strengthening these supply chains is critical to long-term energy security, economic competitiveness, and national resilience.

The funding builds on the department’s Rare Earth Demonstration Facility program, which is designed to support full-scale, integrated extraction and separation facilities within the United States. It follows a Notice of Intent released earlier this year, signaling DOE’s push to move from planning to on-the-ground projects.

Rare earth elements such as praseodymium, neodymium, terbium, and dysprosium are essential for advanced manufacturing, defense applications, and high-performance magnets used in electric motors and power generation.

A DOE-hosted informational webinar occurred on December 9, 2025. Non-binding letters of intent are due December 10, with full applications required by January 5, 2026.