The U.S. Department of Energy announced Thursday that it will distribute $500 million in federal grants to seven firms developing domestic lithium, cobalt and other essential mineral projects. The awards are the latest step in the Trump administration’s effort to make the United States a “minerals superpower” and reduce reliance on foreign sources, particularly China.
Grant recipients and project details
Each of the selected companies received $100 million, except for three that were allocated $50 million each. Lilac Solutions will build a direct lithium extraction facility on Utah’s Great Salt Lake, targeting 5,000 metric tons of lithium carbonate per year and slated to begin operations in 2028. The project is backed by automotive giant BMW.
Jervois, which controls a large cobalt deposit in Idaho, will receive $100 million to construct the nation’s only cobalt refinery. The plant will support battery production, electronics manufacturing and defense applications, and could eventually process deep‑sea nodules.
Battery recycler Nth Cycle, a venture supported by Trafigura, also earned $100 million for a facility that will process “black mass,” the scrap material recovered from spent batteries. Earlier this month the administration halted exports of black mass, but the grant is not tied to that restriction; officials said the United States must develop a full domestic recycling ecosystem.
The remaining $150 million is split among three smaller projects: Princeton NuEnergy will reprocess cathode battery parts; Arcanum Ventures will produce chemicals for battery electrolytes; and Coreshell Technologies will develop silicon‑based anodes as an alternative to traditional graphite.
Policy context and national security
Assistant Secretary of Energy Audrey Robertson said the selected projects were chosen for their high return to American taxpayers and their strategic importance to the battery supply chain. The funding round follows a surge of applications to the DOE’s Battery Materials Processing and Battery Manufacturing programs, reflecting growing industry interest in domestic production.
The administration has framed the initiative as a matter of national security. Ongoing conflict with Iran has highlighted the vulnerability of U.S. weapons inventories that depend on critical minerals. By expanding domestic mining and processing capacity, the government aims to safeguard the industrial base needed for defense and economic resilience.
Broader implications
These grants complement other federal tools—loans, tax incentives and direct investments—that have been used to spur mining and processing projects across the country. Supporters argue that a robust domestic supply chain will create jobs, lower costs for electric‑vehicle manufacturers and reduce exposure to geopolitical risks.
Critics caution that rapid expansion of mining activities must be balanced with environmental stewardship and respect for local communities. The projects will be subject to standard federal and state permitting processes, including reviews of water use, land impact and wildlife protection.
As the United States seeks to secure its position in the global battery market, the DOE’s $500 million grant program marks a significant federal commitment to building the infrastructure needed for the next generation of clean‑energy technologies.
Original reporting: Appleton, WI News Feed (HLL/CB) — read the source article.
