Why the U.S. Is Doubling Down on Domestic Mineral Processing 

In a time where supply chain fragility undercuts national competitiveness, the U.S. government is asserting sovereignty over critical raw materials. The Department of Energy’s $1 billion investment across mining, refining, and recycling is an unmistakable signal that depending on foreign mineral supply chains is waning. For executive teams in energy, manufacturing, automotive, and semiconductor sectors, this initiative reframes raw material strategy from cost center to strategic lever. The excerpt below showcases how this funding is being allocated and the strategic rationale behind it.

As reported by Avery Larkin in “Securing the Supply Chain: The U.S. Invests $1 Billion in Critical Minerals” on Supply Chain Connect:

“Eager to reduce its dependence on imports, the U.S. is putting nearly $1 billion toward shoring up its critical minerals supply chain. To get there, the U.S. Department of Energy (DOE) plans to fund projects that expand domestic mining, processing and recycling of the materials needed for batteries, semiconductors and clean energy systems. The goal is to cut reliance on foreign sources and build a more secure industrial base.

The funding covers multiple points in the supply chain, from refining and recovery to battery recycling and advanced processing. According to the DOE, $500 million is being allocated to battery materials and recycling, $135 to rare earth refining, $250 million to recovery at industrial sites and $50 million will support the advanced semiconductor processes.

These new funding announcements were issued in accordance with the Executive Order Unleashing American Energy, and they focus on ensuring ‘a more secure, predictable, and affordable supply of critical minerals and materials that are foundational to American energy dominance, national security, and industrial competitiveness,’ the DOE says.” 

Continue reading “Securing the Supply Chain: The U.S. Invests $1 Billion in Critical Minerals” by Avery Larkin on Supply Chain Connect. 

Why It Matters to You 

For executives in sectors tethered to batteries, semiconductors, EVs, renewables, and defense systems, this funding shift strengthens the case for domestic vertical integration. Margins, reliability, and risk mitigation all move closer to your direct control when raw material pathways are no longer opaque or geopolitically fraught.

Moreover, early entrants into pilot programs or DOE-funded projects stand to gain first-mover advantage in preferred access, matching funds, and technology licensing. Ignoring this wave risks being downstream of a bottleneck that transforms from a supply issue to a margin tax.

Next Steps 

• CEO/Strategy Lead: Model the impact of higher mineral costs under import disruption and compare to CapEx needed for upstream integration. 
  
• R&D/Materials Science Teams: Monitor DOE NOFOs, engage early in pilot proposals around recycling, extraction, and co-production. 
  
• Operations/Procurement: Reassess supplier risk zones, identify critical mineral dependencies, and prioritize dual or domestic sources. 
  
• Sustainability/ESG: Factor materials resilience into ESG narratives and investor communications, emphasizing strategic independence. 
  
• Government/External Affairs: Engage with DOE, Congress, and industry alliances to help shape project criteria, tax incentives, and regulation.