The U.S. Department of Energy (DOE) has announced nearly $1 billion in funding for domestic mining, processing and manufacturing of rare earth minerals and materials.

"For too long, the United States has relied on foreign actors to supply and process the critical materials that are essential to modern life and our national security," said U.S. Secretary of Energy Chris Wright in an August 13 release. Between 2020 and 2023, China accounted for 70% of all rare earth imports into the U.S.

The funds include up to $50 million for capital investments in processes to refine materials used in semiconductors, strengthening the country's rare earth magnet supply chain, and technologies for extracting and separating lithium. Another $250 million will go toward recovering minerals from industrial byproducts such as coal, while $500 million will be used to expand U.S. mineral and material processing for battery manufacturing and recycling.

On August 12, the U.S. Department of Defense (DoD) also loaned U.S. rare earth mine operator MP Materials $150 million for upgrades to the company's Mountain Pass, California, facility. The DoD agreed to buy $400 million worth of preferred stock in MP Materials the month prior. The company owns the only operational rare earth mine in the U.S., and produces magnets from rare earth elements for systems in missiles, drones, smart bombs and fighter jets.