US Energy Department Allocates $500 Million to Boost Domestic Critical Mineral Projects

The US Energy Department announced on Thursday that it is backing seven critical minerals companies with $500 million in grants, marking the latest investment by President Donald Trump's administration to strengthen the country's domestic supply chain. The latest awards will go to firms building lithium, cobalt and other minerals projects to support battery materials processing, recycling and manufacturing.

“For too long, America has depended on foreign actors for critical materials essential to modern life that underpin our economy, energy security, and national security,” Energy Secretary Chris Wright stated.

Utah's Lilac Solutions will receive $100 million to build and operate a lithium extraction and refining facility on the Great Salt Lake, which is expected to produce 5,000 metric tonnes per year upon opening in 2028. Additionally, the Energy Department awarded $100 million to Jervois for the construction of a cobalt refinery, a metal utilized in weapons, batteries and electronics.

Furthermore, $100 million is being provided to Nth Cycle to process black mass, a battery-metal scrap whose export was blocked by President Donald Trump's administration earlier this month. Another $50 million will be distributed among Princeton NuEnergy for rejuvenating battery-grade cathode materials, Arcanum Venture for producing battery-grade ethylene carbonate, Elevated Materials for supporting fast-charging battery materials, and Coreshell Technologies for a project creating a US gigafactory dedicated to silicon-anode battery production.

These awards follow a recent announcement of $162 million in funding directed toward the recovery of scandium, copper, antimony, and rare earth elements. The administration frames these initiatives as crucial for encouraging private sector investment to safeguard national and energy security against heavy export restrictions from China, which holds significant leverage in the global supply chain.

“We're putting our miners back to work, and we're reclaiming America's rightful place as the minerals superpower of the world,” President Donald Trump declared during a mining round-table at the State Department on August 7.