Defense Production Act Title III (DPA Title III)

The Department of the Air Force is awarding cooperative agreements under Defense Production Act Title III (CFDA 12.777) to establish and expand domestic industrial capabilities for critical defense materials and manufacturing, with the most recent award of $6.99 million for space solar cell coverglass manufacturing on July 7, 2026.

The program funds concrete capacity-building projects across critical supply chains: rare earth element separation and magnet manufacturing, domestic mining and processing of tungsten, lithium, cobalt, nickel, and manganese, advanced manufacturing capabilities for composites and ceramics, semiconductor and microelectronics process technology, chemical production for energetic materials and explosives, and facilities expansion for engines, forging, and specialty materials. Recent awards support projects ranging from feasibility studies to full-scale facility construction and workforce development, with completion horizons typically three to four years.

All awards under this program are structured as cooperative agreements, reflecting the government's active engagement with recipients on industrial base resilience. The program has disbursed 114 awards totaling $2.64 billion in federal obligation since 2006, with $3.81 billion in total obligated funding when including recipient cost-share. Recent award velocity shows concentration in 2023 and 2024 (22 and 19 awards respectively) with significantly fewer awards in 2025 and 2026 to date (3 and 2 awards).

DOD Washington Headquarters Service dominates funding, providing 71 awards worth $2.13 billion federal dollars. The Department of the Air Force Materiel Command Research Laboratory (AFRL) is the second funder with 27 awards totaling $303.4 million, followed by the Office of the Secretary of Defense with 14 awards and $160.5 million. The Defense Finance and Accounting Service provides the remainder through 2 awards worth $47.5 million.

Award magnitudes vary considerably. Recent mega-awards include $288.96 million for cruise missile engine facility expansion (December 2024), $225.97 million for lithium mine restoration (September 2023), and $230.63 million for solid rocket motor production upgrade (March 2023). Mid-range awards cluster in the $20–70 million band. Awards also include smaller projects at $6–15 million for specialized capabilities or early-stage feasibility work.

The primary grant opportunity open is FA8650-19-S-5010, the master hybrid Broad Agency Announcement for Defense Production Act Title III Expansion of Domestic Production Capability and Capacity, with a current closing date of July 12, 2026 and a cost ceiling of $9 billion ($4.5 billion government share and $4.5 billion recipient share). The announcement has been issued through periodic calls for specific critical materials or manufacturing capabilities. White paper submissions are currently suspended, but proposals under announced calls remain eligible. Recent calls have targeted critical chemicals production, rare earth recovery, tungsten supply, cobalt expansion, composite manufacturing, semiconductor process technology, and mineral processing. Applicant eligibility is unrestricted, though for-profit organizations are typically sought for industry-led projects. Recipients must demonstrate financial systems compliant with Generally Accepted Accounting Principles and provide proof of prior government or independent audit.