New Grant Seeks to Boost Critical Minerals Supply Chain in USA

The USA Department of Energy (DOE) has announced $150 million in funding for the development of new ways to produce critical minerals and materials, aimed at reducing import reliance.

Projects being sought are bench- or pilot-scale research, development and demonstration on new technologies for the environmentally responsible and affordable extraction, production, separation and processing of critical minerals and materials. The grant also welcomes works exploring substitutes for scarce critical minerals and materials that can be used for clean energy generation. It also supports projects seeking to make possible the production of value-added products from waste materials, as well as those developing energy technologies or designs that promote the use of locally sourced materials.

"The funding, provided by the Bipartisan Infrastructure Law, will help meet the growing demand for critical minerals and materials while reducing our dependence on offshore supplies", the DOE said in a press release Wednesday. "Critical minerals and materials are key to manufacturing clean energy technologies—such as solar panels, wind turbines, electric vehicles, and hydrogen fuel cells—that will help America reach the Biden-Harris Administration’s ambitious climate goals".

Energy Secretary Jennifer M. Granholm said in a statement, "The investments announced today enhance national security by reducing our reliance on foreign sources—while strengthening an existing mining and energy workforce to develop sustainable sourcing for these vital materials right here in the U.S.A.” 

Coal Minerals Production

The new grant follows a funding offer of $30 million for the development of "environmentally benign" ways to extract minerals and other byproducts from coal to curb offshore reliance and lower costs. Projects that may qualify include those working on "advanced process development for production of rare earth metals and co-production of critical minerals and materials from coal-based resources", according to the official notice of the opportunity August 21 on the FedConnect website.

"Since January 2021, DOE’s Office of Fossil Energy and Carbon Management has announced an estimated $41 million in projects that support critical minerals and materials exploration, resource identification, production, and processing in traditional mining and fossil fuel-producing communities across the country", the DOE said in Wednesday's announcement. "This total includes $16 million in Bipartisan Infrastructure Law funding for detailed engineering and cost studies toward a first-of-a-kind domestic facility that will extract and separate rare earth elements and critical minerals from unconventional sources like mining waste. 

"This funding will create new opportunities to remediate land and water while generating rare earth elements necessary for a clean energy economy".

Import Dependence

In announcing the two financing opportunities, the DOE noted the USA relies on importation for rare earth minerals but has domestic resources that have yet to be exploited.

Imports accounted for over half of apparent USA consumption for 51 nonfuel minerals in 2022, according to an annual report of the US Geological Survey. "Of the 50 mineral commodities identified in the '2022 Final List of Critical Minerals,' the United States was 100 percent net import reliant for 12, and an additional 31 critical mineral commodities (including 14 lanthanides, which are listed under rare earths) had a net import reliance greater than 50 percent of apparent consumption", said the report titled "Mineral Commodity Summaries 2023".

The DOE said in Wednesday's announcement, "The funding opportunity announcement released today will help to build a secure, sustainable domestic supply of critical minerals from a broad range of sources across the United States, including recycled materials, mine waste, industrial waste, and ore deposits".

Environmental Safeguards

The announcement said applicants must engage with communities on the potential societal impacts of their projects. They will be required to outline strategies to ensure "strong community and worker benefits" and a report will be required on steps taken and outcomes, the DOE said.

"Applicants must explain how projects are expected to deliver economic and environmental benefits and mitigate impacts; conduct community and stakeholder engagement; incorporate diversity, equity, inclusion, and accessibility; and promote workforce development and quality jobs", the department said.

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