So apparently Uncle Sam decided he’s tired of just watching from the sidelines and wants in on the action. The latest victim? Lithium Americas (LAC), which just saw its stock rocket 90% after news broke that the Trump administration is eyeing up to a 10% stake in the company.
Yeah, you read that right. The government is literally becoming a day trader, except instead of losing money on meme stocks, they’re strategically buying into companies that make stuff we actually need.
The Lithium Gold Rush
Here’s the deal: Lithium Americas is building what’s set to become the largest lithium mine in the Western Hemisphere at Thacker Pass, Nevada. Think of it as the Fort Knox of battery juice. This isn’t some tiny operation either – we’re talking about enough lithium to power 800,000 electric vehicles in just the first phase.
The government already loaned them $2.26 billion (because apparently that’s pocket change now), and now they want warrants for 10% of the company. It’s like when your friend asks to borrow money for a business idea, except this time the friend is the U.S. government and the business idea might actually work.
Why Washington Suddenly Cares About Rocks
Plot twist: China controls about 65% of the world’s lithium refining. That’s like letting your biggest competitor control the supply of coffee beans while you’re trying to run Starbucks. Not ideal.
The U.S. is basically saying “Hey, maybe we should make our own batteries instead of asking China pretty please every time we want to build an electric car or power a military drone.” Revolutionary thinking, really.
This Isn’t Their First Rodeo
Lithium Americas is just the latest in Washington’s new investment strategy. They’ve already jumped into:
- MP Materials – The only U.S. company mining rare earth minerals at scale (stock doubled after the news)
- Intel – $8.9 billion for a 10% stake to keep chip manufacturing domestic
- NuScale Power – $500 million for small nuclear reactors
It’s like the government finally realized that maybe, just maybe, owning the companies that make critical stuff is better than hoping other countries will always play nice.
The MAGA Fund Reality
This all ties back to what some are calling the “MAGA Fund” – basically America’s first sovereign wealth fund. Think of it as the government’s investment portfolio, except instead of buying index funds, they’re picking companies that make things essential for national security.
The strategy is simple: identify companies that make stuff we can’t live without (rare earth minerals, chips, lithium, etc.), then become their biggest cheerleader with a checkbook.
What This Means for Your Portfolio
If you’re wondering whether to jump on this trend, remember that government backing can be a powerful tailwind. When Uncle Sam decides your company is “strategically important,” that’s basically a golden ticket in today’s market.
Just look at the pattern: MP Materials doubled, Intel jumped, and now Lithium Americas is up 90%. The government isn’t just throwing money around – they’re creating winners by design.
The takeaway? Sometimes the best investment strategy is following the money, especially when that money comes with the full backing of the U.S. government. Who knew bureaucrats could be such effective stock pickers?