Rare Earth Elements Demonstration Facility

The Rare Earth Elements Demonstration Facility grant, funded through the U.S. Department of Energy’s Office of Manufacturing and Energy Supply Chains (MESC), supports the development of a critical infrastructure initiative to bolster America’s domestic supply chain for rare earth elements (REEs). This program responds to a national imperative to reduce dependence on foreign sources for these vital materials, which are essential to a wide range of technologies including renewable energy, defense systems, and advanced electronics. Authorized under Section 40205 of the Infrastructure Investment and Jobs Act (IIJA) and codified at 42 U.S.C. 13344, the program will provide up to $134 million in total funding for cooperative agreements focused on demonstrating innovative technologies for the extraction, separation, and refining of REEs at a single integrated facility in the United States. The program’s core purpose is to design, construct, commission, and operate a demonstration-scale facility that produces between 150 and 1000 metric tons per year of rare earth elements using domestic feedstocks derived from acid mine drainage, mine waste, e-waste, or similar deleterious materials. These projects are intended to advance the commercial viability of REE production from unconventional sources and reduce environmental impact while addressing market constraints and national security vulnerabilities. The Department of Energy expects that these projects will create modular, scalable processing capabilities that prioritize the production of heavy REEs and use domestic supply chains to the maximum extent possible. Applicants must meet strict eligibility requirements as outlined in Part I, Section II of the NOFO. Only partnerships that include a domestic academic institution with material project participation are eligible to apply, either as a prime applicant or subrecipient within a consortium. Additionally, applicants must demonstrate a minimum 50% non-federal cost share and ensure that all work is conducted within the United States unless a waiver is granted. Projects will be subject to phased reviews and must meet specific Go/No-Go criteria throughout each budget period to continue receiving funding. The program also permits consideration of co-produced minerals and materials, provided they align with project goals. Applications must include a completed technical volume, budget justification, letters of commitment, project objectives, financial models, and compliance documentation, among other components. The submission process requires registration in the System for Award Management (SAM), the DOE eXCHANGE portal, and Grants.gov. While submission of a Letter of Intent is encouraged to help DOE manage the review process, it is not mandatory. Letters of Intent are due by December 17, 2025, and final applications are due no later than January 20, 2026, at 5:00 PM Eastern Time. Applications will be evaluated based on technical merit, project viability, economic analysis, and potential supply chain impacts. Additional evaluation criteria include completeness of environmental planning, quality of proposed team and partnerships, and alignment with DOE programmatic goals. Selection notifications are anticipated in February 2026, with award negotiations and execution expected by April 2026. The period of performance for awarded projects is up to 36 months, structured in three budget periods, each aligned with specific project milestones. For inquiries related to this funding opportunity, applicants may contact the DOE via the designated program inbox at [email protected]. Additional application resources, including templates and required forms, are available through the DOE Infrastructure Exchange portal. The full text of the announcement and all accompanying documents should be reviewed thoroughly to ensure compliance with all technical, eligibility, and administrative requirements prior to submission.

Applicants should prioritize a strong FEED plan, show full financing and offtake agreements, and align with domestic sourcing priorities. Robust environmental and risk mitigation planning is expected.