US DOE $355mn critical minerals production funding targets coal ash and industrial by-products

DOE

US DOE $355mn critical minerals production funding will accelerate minerals recovery from waste streams. US Department of Energy will support projects that extract minerals from industrial and coal by-products. The US DOE $355mn critical minerals production funding also supports testing and scale-up infrastructure. Therefore, the program targets faster domestic supply chain buildout.

The funding package splits into two major tracks. DOE will offer up to $275mn for pilot programs. These pilots target mine tailings, impoundments, and coal ash recovery projects. Meanwhile, DOE will provide up to $80mn for field sites to test mining technologies. As a result, the program links extraction innovation with real-world validation.

Pilot programs target coal ash, tailings, and impoundments for minerals recovery

Pilot programs will focus on existing waste streams with recoverable mineral content. Developers can process coal ash and legacy mine materials for critical minerals. However, projects must prove economics, permitting pathways, and consistent feed chemistry. Therefore, successful pilots will prioritize modular processing and robust sampling plans.

This approach can reduce environmental liabilities while creating feedstock. It can also shorten timelines compared with greenfield mines. Meanwhile, recycled and secondary sources can help buyers meet ESG and traceability goals. As a result, minerals recovery from coal by-products could become a strategic supply pillar.

Field sites aim to de-risk mining technology for commercial deployment

DOE will fund field sites to test mining technologies at operational scale. These sites can validate throughput, recovery rates, and operating costs. However, field data must translate into bankable designs for lenders and offtakers. Therefore, the $80mn track addresses the commercialization gap.

The new funding fits a broader onshoring push. DOE previously announced a $975mn initiative to strengthen domestic critical minerals supply chains. Meanwhile, manufacturers want reliable US-linked sources for batteries, magnets, and defense systems. As a result, US DOE $355mn critical minerals production funding supports upstream resilience and technology readiness.

The Metalnomist Commentary

Secondary recovery can deliver faster tonnes, but it needs disciplined project selection. Meanwhile, winners will pair metallurgy with predictable permitting and community engagement. Therefore, the US should treat these pilots as scalable templates, not one-off demos.