So apparently, the Trump administration has discovered day trading. And honestly? They’re not terrible at it.
The latest victim of Washington’s newfound stock-picking addiction is Lithium Americas (LAC), which absolutely exploded 90% after news broke that Uncle Sam wants to buy up to 10% of the company. Because nothing says “free market capitalism” quite like the government becoming your biggest shareholder, right?
But here’s the thing – this isn’t some random government brain fart. There’s actually a method to this madness, and it’s making some people very, very rich.
The Government’s New Investment Strategy: “If You Can’t Beat China, Buy American”
Here’s what’s really happening: China basically owns the lithium game. They control 65% of global lithium refining, which is like owning all the gas stations while everyone else is trying to drive electric cars. Not ideal when you’re trying to build a domestic EV industry.
Enter Lithium Americas and their Thacker Pass mine in Nevada – set to become the largest lithium project in the Western Hemisphere. We’re talking 40,000 metric tons of lithium carbonate in phase one alone, enough to power 800,000 electric vehicles. The mine could run for 85 years, which in government terms is basically forever.
The deal? Washington gets no-cost warrants on up to 10% of LAC shares as part of renegotiating a $2.26 billion Department of Energy loan. General Motors, which already owns 38% of the project, is being pressured to provide purchase guarantees. It’s like a really expensive group project where everyone has to contribute.
This Isn’t Washington’s First Rodeo
Plot twist: LAC isn’t the government’s first stock market adventure. They’ve been on quite the shopping spree:
- MP Materials – The only U.S. company mining rare earth minerals at scale. Stock doubled within a week of the government deal.
- Intel – $8.9 billion for a 10% stake to secure domestic chip manufacturing. Because apparently, we need our semiconductors to be as American as apple pie.
- NuScale Power – $500 million for small modular reactors, because nuclear energy is having a moment.
The pattern is clear: Washington is moving beyond just throwing money at problems. They’re actually buying pieces of the solution.
The “MAGA Fund” Reality
This all ties back to Executive Order #14196, which created America’s first sovereign wealth fund. Think of it as the government’s investment portfolio, but instead of buying index funds, they’re picking individual stocks in sectors deemed “critical to national security.”
The sectors getting attention? Quantum computing, nuclear energy, cloud computing, defense, and critical minerals. Basically, anything that sounds important and futuristic.
What This Means for Regular Investors
Here’s the deal: when the U.S. government decides your company is “strategically important,” your stock tends to do very well. It’s like getting a government endorsement, except instead of a tweet, you get billions of dollars in backing.
The smart money is watching for the next companies to get the Washington treatment. Because while the government might not be great at running the DMV, they’re proving surprisingly effective at picking winners in the stock market.
Who knew Uncle Sam had such good investment instincts?