The Trump administration‘s recent move to acquire up to a 10% equity stake in Lithium Americas Corp (NYSE: LAC) has sent shockwaves through the mining sector. This strategic investment aims to bolster domestic production of critical minerals, particularly lithium, by renegotiating a $2.26 billion Department of Energy (DoE) loan for the Thacker Pass project in Nevada.
- Track LAC stock here.
Given this precedent, several other companies in the critical minerals space may find themselves on the administration’s radar.
Read Also: Golden Cross Alert: Lithium Americas Rockets 90%+ As Trump Eyes 10% Stake
1. Mp Materials Corp (NYSE: MP)
MP Materials is the largest producer of rare earths in the U.S., operating its Mountain Pass mine in California.
The company has already secured a 15% equity stake from the Department of Defense (DoD), underscoring its strategic importance. Given the administration’s focus on reducing reliance on foreign sources, particularly China, MP Materials could be a prime candidate for further government investment.
2. USA Rare Earth Inc (NASDAQ: USAR)
USA Rare Earth is advancing the Round Top project in Texas, a deposit rich in rare earths and critical minerals like lithium.
The company's focus on building a fully integrated U.S. rare earth supply chain—from mining to magnet manufacturing—fits squarely with the administration's goals of reducing reliance on China. Given Washington's increasing appetite for direct stakes in strategically vital projects, USA Rare Earth could be a natural candidate for federal support.
3. Ioneer Ltd (NASDAQ: IONR)
Ioneer is developing the Rhyolite Ridge lithium-boron project in Nevada, a critical asset for the electric vehicle supply chain.
The company has received a conditional commitment for a $700 million loan from the DoE, highlighting its alignment with national security objectives. With the administration’s emphasis on securing domestic lithium sources, Ioneer may be poised for increased federal support.
4. Perpetua Resources Corp (NASDAQ: PPTA)
Perpetua Resources is advancing the Stibnite Gold Project in Idaho, which not only offers gold but also significant antimony reserves—a critical mineral for defense applications.
The project’s potential to contribute to the U.S. supply of antimony aligns with the administration’s goals to enhance national security through domestic mineral production.
Investor Takeaway
The Trump administration’s strategic investments in critical minerals companies signal a broader initiative to strengthen domestic supply chains and reduce dependence on foreign sources.
Investors should monitor these companies as potential beneficiaries of government support, which could lead to increased valuations and strategic partnerships.
Read Next:
Photo: Shutterstock
