So apparently Trump’s on a shopping spree, and this time he’s eyeing Lithium Americas (LAC) like it’s the last slice of pizza at a tech conference. Word on the street is that Uncle Sam wants to grab up to a 10% stake in the company while renegotiating a $2.26 billion Energy Department loan. And boy, did the market notice—LAC shares absolutely rocketed 80% in after-hours trading yesterday.
Here’s the deal: America currently produces about as much lithium as a small mining operation—roughly 5,000 metric tons per year from one lonely facility in Nevada. Meanwhile, China’s basically cornered the global lithium processing market like they’re playing Monopoly and everyone else forgot to buy properties.
Enter Thacker Pass, Nevada’s answer to “How do we not depend on China for everything?”
This isn’t just any mining project. Once it’s up and running, Thacker Pass could pump out 40,000 metric tons of battery-grade lithium carbonate annually. That’s enough to power nearly 800,000 electric vehicles per year. Not too shabby for a patch of Nevada desert.
But here’s where it gets interesting—this isn’t Trump’s first rodeo with government equity stakes. Remember when the administration grabbed a 10% chunk of Intel (INTC) last month? That move was all about securing America’s semiconductor supply chain, and guess what happened next? NVIDIA (NVDA) swooped in with a $5 billion investment and a collaboration deal. Turns out, government backing can actually make companies more attractive, not less.
Then there’s MP Materials (MP), America’s only vertically integrated rare earth producer. The Pentagon became their biggest shareholder in July, and shortly after, Apple (AAPL) committed $500 million for American-made magnets. Coincidence? I think not.
The pattern here is crystal clear: Trump’s playing 4D chess with America’s supply chain. By taking equity stakes in companies that control critical materials—semiconductors, rare earths, and now lithium—the government isn’t just throwing money at problems. They’re becoming shareholders with skin in the game.
Why should you care? Because this strategy is working. When Washington writes a check and takes a seat at the table, it sends a signal to private investors that this company is too important to fail. It’s like having the world’s most powerful venture capitalist as your co-investor.
The bigger picture? America is done playing nice with supply chain vulnerabilities. Whether it’s chips from Taiwan, rare earths from China, or lithium for EV batteries, the message is clear: if it’s critical to national security or the economy, America wants control.
For investors, the playbook is becoming predictable: when Uncle Sam buys in, the market tends to follow. LAC’s 80% pop yesterday is just the latest example. Whether you’re bullish on EVs, bearish on China dependence, or just love a good government-backed momentum play, this trend is worth watching.
Bottom line: Trump’s not just making deals—he’s reshaping how America thinks about strategic investments. And if the Intel and MP Materials precedents are any indication, Lithium Americas might just be getting started.