US to Invest $134M in Rare Earth Supply Chain, Signs Pacts with Allies

    Just now, Logistics Headlines has learned: The US Department of Energy's Office of Critical Minerals and Energy Innovation announced that it will invest up to $134 million (approximately £100 million) to strengthen the domestic supply chain for rare earth elements (REEs).

    This funding will support commercially viable projects for recovering and refining rare earth elements from unconventional sources such as mine tailings, electronic waste, and other discarded materials.

    Data from the US Geological Survey shows that in 2024, 59% of the rare earth elements used in the United States were imported. These elements, including praseodymium, neodymium, terbium, and dysprosium, are crucial for advanced manufacturing, defense systems, and high-performance magnets.

    US Secretary of Energy Chris Wright pointed out: "For too long, the United States has depended on foreign suppliers for the critical minerals and materials that power our economic development."

    He stated: "We have these resources here at home, but years of complacency allowed America's mining and industrial base to be replaced by other countries. Thanks to the leadership of President Trump, we are reversing this trend and rebuilding America's ability to mine, process, and manufacture the critical materials needed for our energy and economic security."

    This Funding Opportunity Announcement (FOA) follows a Notice of Intent (NOI) issued in August.

    The US Department of Energy requests non-binding letters of intent to be submitted by December 10, 2025, to aid in planning the review process. The application deadline for the latest funding opportunity is January 5, 2026.

    According to the requirements, project teams must include an academic partner, and the funding award requires the recipient to cover at least 50% of the cost share.

    In addition to promoting domestic mineral production, the US government has signed mineral framework agreements with allies including Australia, Japan, and Saudi Arabia over the past few months.