📌 Key Takeaways
- U.S. government already owns 15% of MP Materials, the only U.S. rare earth miner.
- Administration now weighing up to 10% stake in Lithium Americas as part of DOE loan restructuring.
- Strategy shifts Washington from lender to direct shareholder in key critical mineral firms.
- Aim is to secure domestic supply of rare earths, lithium, and battery metals amid U.S.-China tensions.
Trump administration is considering equity stakes in Lithium Americas and MP Materials as it expands control over U.S. critical mineral supply chains and moves beyond loans and grants to take direct equity stakes in U.S. critical mineral companies.
Washington already holds a 15% stake in MP Materials, making it the rare earth miner’s largest shareholder. The company operates the Mountain Pass mine in California, the only active rare earths producer in the U.S.
The White House is “not ruling out other deals with equity stakes or price floors as we did with MP Materials, but that doesn’t mean every initiative we take would be in the shape of the MP deal,” a Trump administration official told CNBC.
Officials are now negotiating with Lithium Americas over a potential equity stake of up to 10%. The deal would be tied to restructuring a $2.26 billion Department of Energy loan for the company’s Thacker Pass lithium project in Nevada.
The strategy marks a shift: rather than only supporting critical minerals through loans and subsidies, the government is moving to own part of the companies producing them.
Lithium Americas’ stock surged nearly 90% after news of the talks broke. The Information reported that officials are considering similar approaches with other miners across lithium, rare earths, and battery metals sectors.
Negotiations with Lithium Americas are ongoing, and more companies could follow. If finalized, Washington would hold positions in both the leading U.S. rare earth miner and the most advanced U.S. lithium developer — marking an unprecedented direct role for the government in the critical minerals sector.