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DOE Announces $159 Million for AI Research, Including Rare Earth Recovery and Energy Projects

 

 

October 8, 2026 - The U.S. Department of Energy announced $159 million for 12 new Genesis Mission research projects Thursday, including efforts to improve domestic rare earth extraction, advance fusion technology and develop geothermal resources.

DOE also selected six additional Phase I projects, completing the mission’s first-year portfolio of 297 projects. Launched in November 2025, the initiative combines advanced artificial intelligence, which DOE calls “Super Intelligence,” with scientific research and high-performance computing. www.energy.gov

Among the projects is the University of Illinois Urbana-Champaign’s AXIS initiative, which will use AI to develop more efficient electrochemical methods for extracting rare earth elements from domestic sources.

Other selections include Commonwealth Fusion Systems’ computerized model for simulating and optimizing its SPARC fusion demonstration device, and UC Irvine’s MAESTRO platform for mapping and managing deep geothermal reservoirs.

The broader research portfolio includes work on RNA structures, specialized microchips, quantum-computing error correction and magnetic materials for sensing and low-power electronics. The new selections bring the number of Phase II projects to 14, including the previously announced GridFM 2.0 and Prometheus projects. www.energy.gov

GridFM 2.0, announced September 1, is an $11.5 million effort led by Brookhaven National Laboratory to help utilities evaluate grid conditions and plan expansion more quickly. DOE says the project will include two demonstrations with utility partners, supporting more efficient investment decisions and improved reliability as electricity demand increases. www.energy.gov

For coal-sector readers, the strongest connections are domestic mineral recovery and electricity-system planning. More efficient rare earth separation could be relevant to the wider effort to develop unconventional mineral resources. However, DOE’s description of AXIS does not identify coal, coal ash or mine waste as the project’s source material. Grid-planning improvements also have potential relevance to utilities operating coal-fired generation.

Alongside the research selections, DOE launched the Genesis Mission Graduate Fellowship Pilot to train scientists and engineers in both advanced AI and a scientific or engineering discipline.

The program is intended to support an initial group of approximately 100 doctoral fellows through accelerated four-year programs. Participating students will complete research experiences at a DOE national laboratory or user facility and with an industry partner.

Planned funding totals up to $100 million, including $20 million in fiscal year 2027. Funding in subsequent years depends on congressional appropriations. Awards will go to participating doctoral-granting institutions. An informational webinar is scheduled for November 4 at 4 p.m. Eastern. Department of Energy

In a separate announcement, DOE selected 67 early-career scientists for a combined $96 million through its 2026 Early Career Research Program. The researchers represent 39 universities and 11 national laboratories and user facilities across 26 states.

Research areas include advanced AI, fusion energy and quantum science. University awards are approximately $875,000 over five years, while laboratory and user-facility awards are approximately $2.75 million over the same period.

DOE said the early-career selections remain subject to award negotiations before funding is issued.