Rare Earth Elements Demonstration Facility

Overview

The Rare Earth Elements Demonstration Facility Program is designed to demonstrate the feasibility of a full-scale integrated rare earth element extraction and separation facility and refinery.

Funding Amount
$140 Million

Funding Type
Grant

Area of Focus
Manufacturing Capacity

Eligible Uses

The facility established shall-- (A) provide environmental benefits through use of feedstock derived from acid mine drainage, mine waste, or other deleterious material; (B) separate mixed rare earth oxides into pure oxides of each rare earth element; (C) refine rare earth oxides into rare earth metals; and (D) provide for separation of rare earth oxides and refining into rare earth metals at a single site.

Recipients

Academic Institutions.

Period of Availability

Available until expended.

Funding Source

Section 40205 of the Bipartisan Infrastructure Law (BIL) amended Section 7001 of the Energy Act of 2020 (42 U.S.C. 13344) and directs the establishment of a rare earth demonstration facility that will include a full-scale integrated rare earth element extraction and separation facility and refinery. This grant is in coordination with the Office of Fossil Energy and Carbon Management (FECM). Additionally, Section 41003 (b) of the BIL identifies related efforts for rare earth minerals security.

 

Funding Details and Announcements

  • Issued a notice of funding opportunity (NOFO) of up to $134 million to enhance domestic supply chains for rare earth elements (REEs). The goal of this initiative is to reduce America’s dependence on foreign sources of REEs by demonstrating the commercial viability of methods for domestically refining and recovering REEs from mine tailings, deleterious material, and waste streams. An academic partner is required as a part of the project team and an award requires a cost-share of at least 50% by the recipient. 

    December 1, 2025

    Notice of Funding Opportunity

    DE-FOA-0003587

    Press Release

    December 9, 2025 at 1 pm ETInformational Webinar.  
    December 17, 2025 at 5 pm ET (Extended Deadline)Non-binding, non-mandatory Letters of Intent requested
    January 20, 2026 by 5 pm ET (Extended Deadline)Full Applications due.


     

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