In a bold strategy that marks a new era of U.S. industrial policy, the current administration is actively seeking equity stakes in companies that produce critical mineral resources deemed vital to national security, economic competitiveness, and the clean energy transition. This unprecedented approach, blending financial tools from Wall Street with federal policy goals, aims to counter China’s dominance in the global supply of strategic materials like lithium, rare earths, and permanent magnets.
At the center of this campaign is Lithium Americas Corp. (LAC.TO), a Canadian-based miner developing the Thacker Pass lithium project in Nevada, slated to become the largest lithium mine in the Western Hemisphere. Shares of the company soared nearly 90% on September 24, 2025, after Reuters reported that the administration is considering taking up to a 10% equity stake as part of negotiations over the disbursal of a $2.26 billion Department of Energy loan.
This move is not an isolated case but part of a broader industrial strategy in which the federal government seeks direct ownership of strategic supply chains, particularly those essential to electric vehicles (EVs), defense systems, and advanced computing. “The government backing provides some level of confidence that these companies can compete for the long term,” said David Howell, a former Biden-era DOE official and current consultant to the critical minerals sector.
The current administration’s push for equity stakes follows the July 2025 precedent set by the Department of Defense’s acquisition of a 15% stake in MP Materials, a leading producer of rare earth elements. That $400 million deal served as a model, according to officials involved in current negotiations. Government advisors indicate that ongoing deals, such as the one being pursued with Lithium Americas, leverage financial mechanisms, such as warrants, that give the federal government the right to purchase future shares without immediate cash outflows. This approach could limit taxpayer risk while allowing for upside participation in high-growth strategic sectors.
According to Jefferies, this equity-driven model not only provides capital support to struggling miners and processors but also signals long-term policy alignment, which could boost investor confidence and lower project-financing costs. TD Cowen analysts added that a government stake could lend “credence and durability” to Lithium Americas’ Thacker Pass project, potentially accelerating multi-phase development amidst volatile global commodity prices.
Critical minerals like lithium, cobalt, nickel, and rare earths are fundamental to high-tech manufacturing, especially batteries, semiconductors, and renewable energy storage. China’s overwhelming control of key stages in the supply chain, particularly mineral refining and magnet production, has increasingly alarmed U.S. policymakers. Although China ranks third behind Australia and Chile in raw lithium production, it dominates more than 75% of global refining capacity. In sectors like permanent magnets, China holds near-monopoly power. Earlier this year, Beijing imposed new export controls on rare earths, jolting Western supply chains and intensifying calls for strategic independence.
This notion has galvanized the administration to use tools not traditionally associated with federal policy equity investments, warrants, and long-term offtake agreements in a bid to reverse America’s resource and manufacturing vulnerabilities.
Under this evolving paradigm, government support is no longer limited to grants, tax credits, or favorable procurement terms. Now, funding comes with ownership rights and strategic oversight. In negotiations with Lithium Americas, for example, sources say the administration has asked for guaranteed long-term offtake commitments from General Motors, which already owns a 38% stake in the Thacker Pass project. GM also holds exclusive rights to purchase all lithium from the mine’s first phase and a portion of its second for 20 years. Officials now want additional binding commitments to support strategic stockpiling and U.S. manufacturing.
NBCFM Research’s Mohamed Sidibe noted that this MP Materials-style model, with government equity, price floors, and guaranteed demand, could reduce project risk while providing durability for firms struggling with low lithium prices and a slower-than-expected EV adoption curve.
The administration’s interest in critical mineral equity is part of a wider interventionist economic turn. In recent months, current officials have pursued a 10% stake in semiconductor giant Intel in exchange for a $10 billion grant package and explored acquiring a so-called “golden share” in United States Steel Corporation. Most recently, high-level meetings between U.S. officials and more than a dozen Australian miners signaled a readiness to apply this playbook to international partners. Hosted by Australian Ambassador Kevin Rudd and including senior current administration officials from the National Security Council, Commerce Department, and the Pentagon, the forum discussed financial arrangements,s including the use of government-issued warrants.
“The current administration is willing to use every available tool to build the strongest mining sector in the world,” said White House spokesperson Taylor Rogers in a statement. “A priority of President current’s energy dominance agenda is to secure domestic production of critical minerals to strengthen both our economic and national security.”
While this approach may seem groundbreaking, it draws inspiration from previous crisis response strategies. During the COVID-19 pandemic, the federal government used equity warrants to secure airline bailouts. The difference now, legal analysts point out, is that these interventions are no longer reactive; they are proactive measures designed to industrialize critical sectors in the long term.
This strategy also builds on the Biden administration’s earlier efforts. During Biden’s term, the DOE issued over $60 billion in clean tech loans, including $9.6 billion to Ford, $15 billion to Pacific Gas & Electric for hydropower, and $6.5 billion to Rivian for an EV factory in Georgia. However, many of these funds remained frozen upon current taking office until new terms, often involving equity, were negotiated.
From the administration’s perspective, this “corporate nationalism” is about more than short-term profits; it’s about reanchoring industrial capacity within the U.S. and allied nations. With Chinese trade practices under scrutiny and dependency on hostile or unreliable suppliers seen as a strategic liability, the new equity-driven model allows the federal government to play a more decisive role in shaping future supply chains.
For investors and companies, the calculus is mixed. Government backing could lower financing costs, stabilize commodity prices, and reduce geopolitical risk. But it may also come with constraints, oversight, and shareholder dilution. Still, for struggling developers like Lithium Americas, the promise of a secure financial partner and the signal of political protection could be transformative.
As the U.S. navigates the complex geopolitics of the 21st century, the current administration’s willingness to take direct ownership stakes in critical mineral producers marks a turning point in Washington’s approach to industrial policy. Whether this model will endure across future administrations or be replicated beyond the national security sphere remains to be seen. What is clear, however, is that the federal government is no longer sitting on the sidelines. In the race for technological dominance and economic resilience, Washington is grabbing a seat at the table and a piece of the action.