US government allocates $500M in grants for domestic minerals projects

The US Department of Energy has announced up to $500 million in grants aimed at supercharging domestic production of critical minerals, battery manufacturing, and recycling. The funding, announced through a Notice of Funding Opportunity (NOFO), targets projects involving lithium, graphite, nickel, copper, aluminum, and rare earth elements. What the money looks like Individual awards will typically range from $50 million to $200 million. There’s a floor of $50 million for demonstration-scale projects and $100 million for commercial-scale facilities. The DOE is requiring a minimum 50% cost-share, meaning companies need to match at least half the federal dollars with their own capital. The bigger picture The DOE first signaled its intent for this funding round back in August 2025, when it outlined nearly $1 billion in critical minerals opportunities. The current NOFO, dated March 13, 2026, represents the largest single tranche of that broader commitment. Beyond the DOE grants, the government has announced billions in additional defense financing and workforce grants exceeding $180 million, all directed at the minerals sector. What this means for markets and industry The 50% cost-share...