The era of the U.S. government becoming a shareholder has begun

🇺🇸 The era of the U.S. government becoming a shareholder has begun

💎 The real reason for the 97% surge in lithium American stock prices

Last week, the U.S. government announced that it would directly acquire a stake in lithium mining company LAC. The news, which soared 97% in a day, is not just a corporate investment.

An unprecedented change has begun for the government to become a shareholder in a private mining company. The Trump administration is renegotiating a $2.3 billion Energy Department loan and is considering acquiring up to a 10% stake.

🎯 Strategy to break China’s 85% rare earth monopoly

What’s more surprising is China’s rare earth strategy. Did you know that even with a 4% yield, it controlled 85% of the world’s processing capacity?

If you look at how China overturned the rare earth market, which the United States played half of in the 1980s, you can see that they have been using it as a strategic weapon at the expense of economic losses.

📈 $400 million + lower price guarantee for MP Materials

To bring back the response rare earth supply chain, the U.S. government signed a landmark agreement with MP Materials:

$400M Preferred Stock Acquisition (Virtually Largest Shareholder)
Set a $110 price-per-kilogram lower limit (double the recent price)
$650 MILLION IN ANNUAL EBITDA ALmost certainly guaranteed

MP shares have more than doubled since the announcement of the agreement, but this could be just the beginning.

There is now a new investment environment that requires consideration of a “geopolitical premium” that is hard to explain with pure valuation. In particular, the company plans to transition to an aerospace/defense supplier, which could completely change the valuation itself.

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