Infrastructure Investment and Jobs Act (IIJA) Mines Metals Capacity Expansion Piloting Byproduct Critical Minerals and Materials Recovery at Domestic Industrial Facilities

The U.S. Department of Energy (DOE), through the Office of Fossil Energy and Carbon Management and administered by the National Energy Technology Laboratory (NETL), has released a Notice of Funding Opportunity (NOFO) under the Infrastructure Investment and Jobs Act (IIJA). This opportunity, DE-FOA-0003583, supports pilot-scale projects for byproduct critical minerals and materials recovery at domestic industrial facilities. The program seeks to accelerate the development and deployment of technologies to extract critical materials from existing industrial processes, especially those in mining, mineral processing, power generation, and other heavy industries. The primary motivation is to strengthen U.S. supply chain security for critical materials, many of which are currently imported and vulnerable to global market disruptions and geopolitical risks. This NOFO falls under the broader authority provided by Sections 7001(a) and 7002(g) of the Energy Act of 2020 and Sections 41003(b)-(c) of the IIJA. These provisions are focused on increasing U.S. capacity to produce rare earth elements and other critical materials domestically, especially from unconventional or secondary sources such as coal byproducts, mine tailings, industrial waste, and similar feedstocks. The aim is to develop pilot-scale systems that reduce technical and financial risk, generate valuable operational data, and lay the foundation for future commercial-scale deployments. Pilot projects should demonstrate the ability to produce market-ready materials like oxides, salts, alloys, or metals. The funding opportunity is structured into two topic areas. Topic Area 1 targets coal-based industries, requiring the use of coal byproducts and focusing on rare earth element (REE) recovery. Topic Area 2 is broader, supporting recovery from all other industries. Subtopic 2a is for applicants with bench-scale processes (TRL 4–5), and Subtopic 2b is for existing pilot-scale technologies (TRL 6–7). Across all topic areas, the pilots must be designed for continuous or semi-continuous operation, located at a domestic industrial site, and produce critical materials that are ready for the commercial market. Feedstocks must be domestic and sourced from ongoing industrial processes or existing waste streams. The program allocates up to $275 million in funding from fiscal years 2024 to 2026, with awards ranging from $10 million to $75 million. A 20% cost share from non-federal sources is required for all projects. The DOE anticipates awarding up to 13 cooperative agreements under this NOFO, with performance periods of up to 48 months. The application process requires submission of a comprehensive application package via the NETL eXCHANGE portal by January 15, 2026, 5:00 p.m. EST. There is no pre-application gating such as concept papers or letters of intent. Required components include a Technical Volume, Statement of Project Objectives, Project Management Plan, Technology Commercialization Plan, and Feedstock and Critical Material Data Sheet, among others. Applications will be reviewed based on scientific and technical merit (50%), the technical approach and understanding (30%), and financial, technical, and management capabilities (20%). Applications must demonstrate technical viability, scalability, a credible commercialization plan, and strong project management capabilities. DOE will also consider program policy factors such as diversity of technologies and feedstocks, geographic distribution, and potential for near-term commercialization. Awards will be made as cooperative agreements, meaning DOE will maintain substantial involvement in project execution. Applicants must be domestic entities (including higher education institutions, nonprofits, state/local/tribal governments, and for-profit organizations). All work must be performed within the U.S., and foreign participation is generally prohibited unless a waiver is granted. NETL is not eligible to apply or be proposed as a subrecipient. Contact for questions is DE-FOA-0003583@netl.doe.gov. The anticipated selection date is January 16, 2026, with conditional awards by February 23, 2026, and full award execution expected by June 15, 2026. Projects are expected to run through June 14, 2030.

Highlight past pilot-scale data; show clear path to commercialization; exceed 20% cost share if possible; align with DOE’s strategic goals.