The Department of Energy (DOE), through its Office of Manufacturing and Energy Supply Chains (MESC), has issued a Notice of Intent to announce a forthcoming Notice of Funding Opportunity (NOFO) for a program titled “Rare Earth Elements Demonstration Facility.” This initiative is authorized under Section 40205 of the Infrastructure Investment and Jobs Act (IIJA) and is intended to strengthen domestic rare earth element (REE) supply chains. The planned NOFO builds on previous federal directives recognizing the need for secure and reliable access to critical minerals, particularly through domestic sources, in order to reduce dependence on foreign suppliers.
The purpose of the anticipated funding opportunity is to support the design, construction, and operation of a demonstration facility that can extract, separate, and refine REEs from unconventional feedstock sources. Qualifying feedstocks must include materials derived from acid mine drainage, mine waste, electronic waste, or other harmful byproducts of mining or industrial operations. The facility is expected to produce high-purity rare earth metals, demonstrating commercial-scale processes that advance U.S. energy independence and industrial competitiveness.
The DOE intends to make up to $135 million available in federal funding for this effort. The funding will be provided through cost-shared financial assistance agreements, requiring recipients to cover at least 50 percent of total project costs. This NOFO is expected to encourage collaborations between academic institutions and industry, with participation from an academic partner mandated for all projects. The DOE expects applicants to establish partnerships early to facilitate proposal development and ensure eligibility for the cost-share requirement.
Eligible applicants must be incorporated or otherwise formed under the laws of a U.S. state or territory and maintain a physical U.S. business location. If a foreign entity applies, it must designate a subsidiary or affiliate incorporated in the United States to serve as the prime recipient, and clearly describe the relationship between the foreign and domestic entities in the full application. Waivers to this requirement will not be granted. The NOFO will be accessible exclusively through DOE’s Infrastructure Exchange platform, and applications will not be accepted through Grants.gov.
To prepare for the application process, prospective applicants are advised to complete required registrations in advance. These include: creating an account in the Infrastructure Exchange, registering in the System for Award Management (SAM), registering in FedConnect, and registering in Grants.gov to receive notices of amendments. The DOE will post the full funding announcement via Infrastructure Exchange in the coming months, at which time applications will be accepted through that system only.
As this is a Notice of Intent, no applications are being accepted at this time, and all information provided is subject to change. Interested parties are encouraged to monitor the Infrastructure Exchange website for updates on release timing, application requirements, and deadlines for submission.
