DOE Announces $1 Billion for Critical Minerals and Rare Earth Initiatives

Energy and Environmental Policy: Key Developments in August

During what is often a quieter month in political circles, August saw significant shifts in energy and environmental policies in the United States. The Department of Energy (DOE) advanced initiatives with over $1 billion in funding to enhance the domestic critical minerals supply chain. Meanwhile, the administration has been moving away from renewable energy projects, with notable rollbacks on solar and wind initiatives, and the Environmental Protection Agency (EPA) aims to revoke the Greenhouse Gas Endangerment Finding. Additionally, numerous political appointments across key energy regulatory bodies were confirmed before the Senate's recess.

Boosting Domestic Critical Minerals Supply

Amidst efforts to strengthen the U.S. critical minerals supply chain, the DOE announced on August 13, 2025, its intent to issue nearly $1 billion in funding opportunities. This move aligns with previous announcements from the Department of Defense (DOD) regarding investments in rare earth mining and processing, such as those made through MP Materials. These initiatives are part of a broader strategy to enhance mining, processing, and manufacturing technologies across the critical minerals and rare earth materials supply chains.

The DOE's plans include several targeted funding opportunities:

• Battery Materials Processing and Battery Manufacturing and Recycling Grant Program: A potential NOFO of up to $500 million to expand critical mineral processing and battery production.
• Critical Minerals and Materials Accelerator: An anticipated NOFO of $50 million to mature technology for domestic commercialization.
• Mines & Metals Capacity Expansion: An NOFO proposal to provide $250 million for financial assistance to facilities that can extract valuable byproducts.
• Rare Earth Elements Demonstration Facility: A NOFO of up to $135 million to establish a facility for extracting high-purity rare earth metals.
• MAGNITO Program: ARPA-E's NOFO offering $20 million for projects developing new magnetic materials using advanced technologies.
• ROCKS Program: ARPA-E's NOFO with $40 million geared towards transforming ore deposit characterization processes.

Legislative Support for Critical Minerals

The FY26 National Defense Authorization Act (NDAA) includes amendments from both the House and Senate to support critical mineral initiatives. The Senate is set to review proposals that could enhance domestic production and secure supply chains. Senator Catherine Cortez Masto's amendment, SA 3392, emphasizes using Defense Production Act funds for critical minerals, aligning with President Trump's Executive Order 14241.

On the House side, Rep. Jill Tokuda introduced an amendment exploring partnerships with Australia for rare earth supplies, reflecting a strategic approach to international cooperation in mineral security.

Renewable Energy Rollbacks and Regulatory Changes

• EPA's Solar for All Program Cancellation: Plans to cancel the $7 billion program supporting solar projects in low-income areas.
• Interior's New Permit Considerations: A Secretary’s Order requiring energy density assessment for federal land project permits, potentially limiting wind and solar initiatives.
• BOEM's Offshore Leasing Schedule Rescission: Plans to rescind regulations for scheduling offshore renewable energy lease sales.
• Lava Ridge Wind Project Cancellation: The Interior's reversal of approval for the Lava Ridge Wind Project.
• IRS Tax Credit Guidance: Updated guidance on Inflation Reduction Act tax credits, impacting qualification criteria.

EPA's Controversial Proposal on Greenhouse Gas Regulation

On July 29, 2025, the EPA proposed revoking greenhouse gas emission standards under the Clean Air Act, arguing that greenhouse gases do not pose direct public health threats. This controversial stance is supported by a recent DOE report, which is currently under legal scrutiny.

Key Personnel Appointments Confirmed

• EPA Appointments: Senate approval for Paige Hallen Hanson as Chief Financial Officer, and Aaron Szabo as Assistant Administrator for Air and Radiation.
• DOE Nominations Progress: Advancements in nominations for Audrey Robertson and Timothy John Walsh for key DOE roles.
• FERC Leadership Changes: President Trump's reported plans to elevate David Rosner to FERC chair.
• NRC Adjustments: Nomination of Ho Nieh to the NRC and the reconfirmation of David Wright as NRC chair.