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CommoditiesMedium•26 February 2026•

1 min read

US Shifts to Market-Maker Role in Critical Minerals to Counter China's Dominance

Key Facts

1The US government is transitioning from a lender to a market-maker by using direct equity stakes and price floors for minerals.

2The DOE provided a $2.3 billion loan to Lithium Americas for the Thacker Pass project, restructured with warrants for equity upside.

3The US government took a 15% stake in MP Materials and a 10% stake in USA Rare Earth.

4China has invested $57 billion in the critical minerals sector through 2021, compared to only $5 billion by the US.

The US government is fundamentally reshaping its approach to critical minerals by transitioning from a traditional lender to an active market-maker. This new strategy involves taking direct equity stakes and implementing price floors to secure domestic supply chains and de-risk the sector. Recent actions include a $2.3 billion DOE loan to Lithium Americas for the Thacker Pass project, structured with warrants for potential equity upside. Furthermore, the government has acquired a 15% stake in MP Materials and a 10% stake in USA Rare Earth to bolster national interests. This aggressive pivot aims to close the massive investment gap with China, which outspent the US $57 billion to $5 billion in the sector through 2021. Analysts view these interventions as a bullish signal for domestic producers, providing a strategic safety net against global market volatility.

Sources:

zerohedge.com