The Trump administration is negotiating to take equity stakes in multiple US critical minerals and battery-supply-chain companies in exchange for releasing Department of Energy grants and loans.
Consultants say the template is the July transaction in which Washington obtained the equivalent of a 15% stake in MP Materials via a $400 million investment paired with a warrant.
The approach lands amid a cash crunch driven by slower-than-expected EV demand and a flood of lower-priced Chinese supply, pushing companies to accept tighter terms to unlock previously awarded federal support. Negotiations are centered on DOE grants and loans for mining, refining, and upstream battery components, with officials asking for equity before money is disbursed, two senior consultants said.
Sponsored · First Phosphate Corp.
The playbook extends beyond minerals. In August, the administration demanded a 10% stake in Intel in exchange for roughly $10 billion in grants, and sought billions in fees from investors like Oracle and Silver Lake tied to a prospective TikTok US arrangement.
A marquee minerals case now under discussion could see the government receive up to a 10% stake in Lithium Americas as the company seeks release of the first tranche of a $2.3 billion DOE loan closed during the Biden administration and modifications to repayment term. Lithium Americas’ shares closed up 96% Wednesday on the news as investors bet the Thacker Pass project proceeds under the new framework.
Executives and advisers argue government ownership can materially de-risk execution.
“For any critical minerals or battery startup, the government backing provides some level of confidence that they have the staying power to compete for a longer term,” Howell said.
Some companies also view a federal stake as a signal to commercial lenders and offtakers that financing and permitting will not stall.
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