The US Department of Energy has announced a new funding programme of up to $500 million aimed at expanding domestic production of critical minerals essential for advanced battery manufacturing.

The initiative, led by the Office of Critical Minerals and Energy Innovation, seeks to support up to ten projects focused on processing and recycling materials such as lithium, graphite, nickel, copper and aluminium.

Applications for funding are open until April 24, with grants ranging between $50 million and $100 million per project. The programme aims to increase domestic production capacity by up to 15% by 2030, reducing dependence on foreign supply chains.

The funding announcement comes as US officials engage with international partners on energy security strategies, including discussions held during the Indo-Pacific Energy Security Ministerial and Business Forum in Japan.

Assistant Secretary of Energy Audrey Robertson emphasised the strategic importance of critical minerals, highlighting their role in supporting national security and enabling the transition to advanced energy technologies.

The programme will allocate funding across multiple areas, including battery materials manufacturing, raw material processing and recycling initiatives. Each project will require at least 50% co-investment from recipients, which may include private companies, research institutions and public entities.

The initiative builds on previous investments, with nearly $5 billion already allocated to 39 projects under earlier programmes.

Officials have also indicated a push to accelerate timelines, reflecting the urgency of addressing supply constraints. Chris Saldaña, deputy assistant secretary, highlighted the potential of recycled materials as a short-term solution, while emphasising the need for long-term sustainability.

The programme is expected to play a key role in strengthening supply chain resilience while supporting the rapid growth of battery technologies and clean energy systems.

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