CHEYENNE, Wyo. — Coal giant Peabody Energy was among five entities selected by the U.S. Department of Energy to share a total of $75 million to boost production of rare-earth elements and other critical minerals. The award supports Peabody’s plan to develop a pilot processing facility near its Rawhide mine north of Gillette to extract valuable minerals from coal and coal byproducts.
What Peabody plans and the local impact
Peabody has said the pilot plant would produce a “market-ready mixed rare-earth concentrate,” which could be further refined into oxides and metals used in electronics, defense systems and clean-energy technologies. Company materials filed with the state and statements released by Peabody indicate the facility would support 55 new jobs once operational.
"Coupled with the Wyoming Energy Authority grant awarded earlier this year, this [DOE grant] selection reflects the meaningful progress Peabody has made in advancing promising unconventional rare earth and critical mineral opportunities," Peabody President and Chief Executive Officer Jim Grech said in a prepared statement.
The DOE award adds to $6.25 million Peabody received earlier this year through Wyoming’s Energy Matching Funds program for the same project. Company officials and state mining advocates have framed the effort as evidence that Wyoming coal can contribute to domestic supply chains beyond electricity generation.
Perspective from industry and state interests
Travis Deti, executive director of the Wyoming Mining Association, described the DOE backing as a validation of coal’s continued economic role in the state. He said extracting critical minerals from coal resources advances both energy and mineral supply objectives while translating into jobs and revenue for local communities.
Peabody, based in St. Louis, is the largest coal producer in both Wyoming and the nation. Public filings and company statements cited in reporting list Peabody’s market value at about $2.8 billion and identify major Wyoming operations including Rawhide, North Antelope Rochelle and Caballo.
- Federal award: Part of a $75 million DOE program for critical minerals.
- State matching: $6.25 million previously awarded through Wyoming Energy Matching Funds.
- Local jobs: Projected 55 new positions at the Rawhide pilot plant.
| Item | Amount / Detail |
|---|---|
| DOE award pool | $75 million (shared among five entities) |
| Wyoming Energy Authority match | $6.25 million (awarded earlier in 2026) |
| Jobs estimated | 55 new jobs at pilot facility |
Why it matters for Wyoming
The project ties Wyoming’s long-standing coal industry to national efforts to secure domestic supplies of rare-earths and critical minerals—materials considered essential for advanced electronics, renewable-energy technologies and national security applications. For Campbell County and other Powder River Basin communities, the pilot facility could mean new employment opportunities and a fresh revenue stream that reframes how coal is used and marketed.
State officials and industry leaders have increasingly promoted diversification within extractive sectors—seeking to convert existing resources and infrastructure into sources of new industrial activity. The Peabody award is likely to draw attention from policymakers in Wyoming and Washington as they evaluate federal support for industrial-scale mineral recovery from unconventional sources.
Details on the specific dollar amount Peabody will receive from the DOE selection were not disclosed in initial announcements. Company representatives have said the pilot facility would produce a mixed concentrate suitable for further refining into marketable oxides and metals.
As the project advances through permitting and development, local officials and stakeholders will watch for firm timelines, workforce needs and environmental safeguards tied to mineral extraction and processing operations at the Rawhide site.
