US to fund $355mn for critical minerals production from coal ash and industrial by-products

Department Of Energy (DOE)

US to fund $355mn for critical minerals production by targeting waste streams that already sit onshore. US Department of Energy will support projects that recover minerals from coal and industrial by-products. US to fund $355mn for critical minerals production to reduce import exposure and accelerate domestic processing. Therefore, the policy shifts attention from new mines to faster, lower-footprint feedstocks.

The funding prioritises pilot programs that extract critical materials from legacy waste. Eligible streams include mine tailings, impoundments, and coal ash. Meanwhile, these materials often concentrate metals that traditional operations left behind. As a result, recovery projects can shorten timelines compared with greenfield mining.

$275mn targets recovery pilots from existing waste streams

US to fund $355mn for critical minerals production with up to $275mn allocated to pilot programs. These pilots will test separation, leaching, and upgrading routes at practical scales. However, pilots must prove consistent feed quality and stable recovery rates. Therefore, developers will focus on sampling, process control, and cost discipline.

Coal ash and industrial residues also offer a logistics advantage. The materials already sit near rail, power, and industrial infrastructure. Meanwhile, permitting can be simpler when projects remediate existing sites. As a result, projects can position recovery as both supply creation and environmental cleanup.

$80mn backs field sites for commercial mining technology validation

DOE will also fund up to $80mn to develop field sites that test mining technologies. These sites can validate equipment and methods for commercial deployment. Meanwhile, field demonstrations help investors compare performance across geologies and waste types. Therefore, they can accelerate adoption for scalable recovery platforms.

These funding opportunities also connect to a larger onshoring effort. DOE previously announced a broader initiative to invest $975mn in domestic critical minerals supply chains. However, capital alone will not guarantee output. As a result, successful applicants will pair funding with clear offtake paths and realistic commissioning plans.

The Metalnomist Commentary

Waste-stream recovery is becoming the quickest route to new domestic critical mineral units. Meanwhile, the winners will be teams that standardise processes across many sites. Therefore, US to fund $355mn for critical minerals production could seed repeatable “mining-as-remediation” business models.