FACTBOX: US government expands stakes in metals companies

The US government's recent equity push in metals and mining companies marks a shift in Washington's role in private industry, as the Trump administration seeks to secure critical supply chains for American manufacturing.

In the last several months, the federal government has acquired a "golden share" as part of the merger between US Steel and Japan's Nippon Steel, a 15% stake in rare earths miner MP Materials, a 5% stake in Lithium Americas Corp. and the Thacker Pass lithium project and a 10% equity stake in computer chip maker Intel.

The US involvement signifies a new trend in how the federal government is looking to reshape private industry and global markets.

The government investment follows President Donald Trump's sweeping country-specific tariffs on a range of commodities from dozens of trading partners – including a 50% tariff on steel, aluminum and copper – and several trade deals that require other countries to make US-based investment commitments.

Experts say government equity is unprecedented in an economy like the US, but may also be necessary to strengthen metals supply chains and compete in global markets.

Metals and mining companies are capitalizing on the public-private partnerships to build new manufacturing facilities, develop projects and expand capacity.

The Trump administration has pointed to the investments as a vehicle to strengthen domestic supply chains.

Infrastructure

• An Oct. 1 agreement between the US government and Lithium Americas Corp. ensures the Thacker Pass lithium project in Nevada will proceed. Construction started at the mine and processing facility in March 2023. It is the only source of lithium carbonate within the US. "Despite having some of the largest deposits, the [US] produces less than 1% of the global supply of lithium," US Energy Secretary Chris Wright said in an Oct. 1 statement announcing the deal. Thacker Pass, which is 38% owned by automaker GM, is expected to produce around 40,000 metric tons/year of battery-grade lithium carbonate.
• The Department of Defense purchased $400 million worth of MP Materials' preferred stock, becoming the company's largest shareholder, as part of a public-private partnership signed on July 11. MP Materials will build a second magnet manufacturing facility to cater to defense and commercial customers. It is expected to start commissioning in 2028 and increase manufacturing capacity to an estimated 10,000 mt/year.
• The government obtained a single preferred share in US Steel, referenced as the golden share, as part of a June 18 merger agreement with Japan-based Nippon Steel. The merger agreement includes an $11 billion commitment by Nippon to invest in US facilities by 2028. The golden share gives the US government certain rights, including to appoint one independent director, close or idle existing US Steel facilities, change the company name and move its headquarters.

Trade flows

• The US relies heavily on imports for lithium, which is key for electric vehicle battery production. The Silver Peak mine in Nevada is currently the only operating lithium mine in the US.
• Processed lithium imports, including lithium carbonate and lithium hydroxide, rose 54% year over year to 5,713 mt in Q2 2025 and increased 6.9% compared to the first three months of 2025.
• In 2024, the US imported 16,170 mt of processed lithium materials and 62,450 mt of refined lithium compounds, according to S&P Global Market Intelligence's Global Trade Analytics Suite.
• The US produces more steel domestically than it imports. In 2024, the US imported 28.9 million mt of steel and produced 87.6 million mt the same year.
• Steel exports have been steadily declining following Trump's decision to impose a 50% tariff on the metal. Total US imports in August fell 21.3% year over year.
• The US produced 45,000 mt of rare-earth oxide valued at $260 million in 2024, according to a 2025 US Geological Survey Mineral Commodity summary.
• The US imports a majority of rare-earth compounds and metals from China. In 2024, the US imported an estimated value of rare-earth compounds and metals totaling $170 million, an 11% decrease from the year prior. Significant amounts of rare earths were imported as permanent magnets in finished goods, USGS said.

Prices

• The Platts-assessed lithium carbonate DDP was at $11,050/mt Sept. 30, down 2.2% from the beginning of the year.
• The Platts-assessed lithium hydroxide CIF was at $9,766/mt on Sept. 1, down 0.6% compared to Jan. 1 of this year.
• Platts assessed the daily TSI US hot-rolled coil index at $810/st on an ex-works Indiana basis Sept. 30, up 17.4% from Jan. 2, 2025.