The United States is taking new steps to rebuild control over the rare earth minerals that power artificial intelligence, clean energy systems and national defense.
In a new announcement, the Department of Energy (DOE) has opened a funding opportunity worth up to $134 million to expand domestic rare earth extraction and processing capacity, aiming to reduce the nation’s reliance on foreign sources dominated by China.
The DOE says the money will support full-scale demonstrations of rare earth extraction, separation and refining technologies inside the United States through unconventional sources like mine tailings, electronic waste and other discarded materials that can be converted into high-value minerals.
Secretary of Energy Chris Wright says the move is a national security and energy security priority.
“For too long, the United States has relied on foreign nations for the minerals and materials that power our economy. We have these resources here at home, but years of complacency have ceded America’s mining and industrial base to other nations. Thanks to President Trump’s leadership, we are reversing that trend, rebuilding America’s ability to mine, process, and manufacture the materials essential to our energy and economic security.”
Rare earth elements such as neodymium, praseodymium, terbium and dysprosium are core building blocks for the next generation of technology. They are used in advanced manufacturing, defense systems, power generation equipment and high-performance magnets inside electric motors. They also underpin the physical infrastructure of the AI boom, including precision motors, cooling systems and grid-scale power technologies used in data centers.
Under the program, the DOE will work with commercial partners to prove that rare earths can be cost-effectively recovered within the United States. The agency says the goal is to demonstrate commercially viable facilities that operate at an industrial scale and can compete with global suppliers.
Last week, President Donald Trump signed an executive order to launch the Genesis Mission, which aims to leverage AI to establish American dominance in energy, scientific discovery and defense.
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