Seems like U.S. President Donald Trump is getting stronger in his push to cut America’s reliance on China. Speculations are rife that the Trump administration is seeking an equity stake in Lithium Americas Corporation (LAC Quick QuoteLAC - Free Report) .

Per Reuters, the government is said to be negotiating for as much as a 10% holding in the company while revisiting the terms of a $2.26 billion Energy Department loan that backs LAC’s Thacker Pass lithium project in Nevada. Following this news, shares of LAC jumped roughly 80% yesterday in after-hours trading.

Lithium Americas currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Thacker Pass as America’s Lithium Test Case

The United States currently produces roughly 5,000 metric tons of lithium in a year, all from Albemarle’s Silver Peak facility in Nevada. Currently, this is the only operational lithium-producing mine in the country, with major projects like Thacker Pass and Rhyolite Ridge still under development. The current volumes of lithium production are just a fraction of the growing demand as automakers scramble to ramp up EV production. Thacker Pass promises to change that equation.

It’s a cornerstone of U.S. ambitions to build a domestic supply chain for electric vehicle batteries. China currently dominates global lithium processing, and Washington sees Thacker Pass as a way to reduce dependence on Beijing. Once operational, its first phase is expected to produce 40,000 metric tons of battery-quality lithium carbonate annually—enough to supply nearly 800,000 electric vehicles each year. No doubt, the project has drawn bipartisan support.

If the government takes an ownership stake, it would mark another step in its aggressive push to anchor critical mineral production.

Trump’s Bigger Play

For Trump, this isn’t just about investing in a company—it’s about securing control over the building blocks of electric vehicles, batteries and national security technologies. By having skin in the game, Washington not only provides funding but also takes on the role of shareholder, aligning its national security priorities with corporate strategy. The precedent has already been set in semiconductors and rare earth materials, where similar deals have unfolded.

The Intel Precedent

Just last month, the administration acquired a 10% stake in Intel Corporation (INTC Quick QuoteINTC - Free Report) , America’s best-known chipmaker. Intel, long known for powering personal computers, is now central to the future of cloud computing, AI, and secure chips needed for defense.

The government’s rationale was simple—semiconductors are strategic to the U.S. economy and military, and leaving production concentrated in Taiwan posed unacceptable risks. The investment was partly funded through CHIPS Act grants and other awards aimed at strengthening domestic semiconductor manufacturing.

The move quickly drew validation from the private sector. Last week, NVIDIA Corp. (NVDA Quick QuoteNVDA - Free Report) , the dominant player in AI chips, announced it would invest $5 billion in Intel stock and collaborate on data center technology. It looks like Washington’s intervention could actually strengthen Intel’s position rather than stifle it.

MP Materials and Rare Earths

Rare earth elements are another battleground. In July, MP Materials (MP Quick QuoteMP - Free Report) signed a landmark deal with the Department of Defense (DoD), making the Pentagon its largest shareholder. Shortly after, tech giant Apple (AAPL Quick QuoteAAPL - Free Report) committed $500 million to secure American-made magnets from MP.

MP Materials is America’s only vertically integrated rare earth producer. From its Mountain Pass site in California, the company primarily mines and processes rare earths, which are essential for electric vehicles, wind turbines, advanced weapons systems, and even AI hardware. To secure this supply chain, the DoD not only invested $400 million in preferred stock and provided a $150 million loan but also pledged to buy MP’s production at guaranteed prices.

Government backing quickly turned MP Materials into a national champion and boosted the stock, showing that equity stakes can strengthen both strategic security and investor confidence.

Even Smaller Players Are in the Mix

The strategy doesn’t stop with giants like Intel or MP Materials. It was announced yesterday that United States Antimony Corporation ("USAC"), a relatively smaller player, secured a five-year, $245 million contract from the Defense Logistics Agency.

Antimony, a metal critical for semiconductors, ammunition, and flame-retardants, is another material where China dominates. With revenues under $15 million last year, US Antimony is now in line to supply the Pentagon directly, thanks to its position as the only integrated antimony producer outside China.

This shows that Washington is willing to support even niche minerals if they are critical to defense and technology.

A Clear Strategy Emerging

Look across Intel, MP Materials, and now potentially Lithium Americas, and a consistent strategy emerges—Trump is tying U.S. national security directly to corporate ownership. By taking equity stakes, the government ensures that companies critical to America’s future remain protected from foreign influence, strengthening U.S. production and cutting reliance on imports.

Last Word

Lithium Americas may well be the next test case. If the government seals a deal, Thacker Pass could become as symbolic to America’s clean-energy future as Mountain Pass is to rare earths or Intel is to chips. And for investors, the pattern is clear—when Washington buys in, the market tends to follow.