Washington: In a decisive shift aimed at bolstering U.S. industrial security and reducing dependency on foreign suppliers, the Trump administration has moved beyond traditional subsidies, acquiring direct stakes in key companies involved in rare earths and semiconductor production. The move, analysts say, signals Washington’s commitment to controlling critical supply chains, particularly in sectors dominated by China.
The strategy converts federal grants into equity ownership, giving the government direct influence in strategic projects. Among the notable investments, the U.S. Department of War is securing a 40% share in a $7.4 billion Tennessee smelter developed by Korea Zinc, with phased operations expected to start in 2029. The Commerce Department is also providing $210 million under the CHIPS Act, highlighting the intertwining of financial support and strategic stakes.
In Alaska, the administration has invested approximately $35.6 million in Trilogy Metals’ Upper Kobuk Mineral Projects in partnership with Australian miner South32. The initiative, backed by a presidential executive order facilitating access roads to the mineral-rich Ambler district, targets copper, zinc, and lead deposits essential for U.S. manufacturing.
Greenland’s Tanbreez rare earths deposit, operated by Critical Metals, is under discussion for an 8% U.S. stake, potentially giving Washington its first direct interest in the Arctic’s largest rare earths project. Similarly, investments have been made in Lithium Americas’ Thacker Pass lithium mine in Nevada, acquiring 5% stakes in both the parent company and the joint venture with General Motors, strengthening domestic lithium production for electric vehicle batteries.
The Mountain Pass rare earth mine in California, operated by MP Materials, has seen the Department of Defense become the largest shareholder with a 15% stake, marking the administration’s most high-profile investment in critical minerals to date. Talks are also ongoing with USA Rare Earth to secure additional strategic involvement.
Officials emphasize that these measures aim to shield the U.S. from global supply disruptions, particularly in sectors where China has traditionally held sway. By converting financial support into ownership stakes, Washington seeks both economic leverage and security assurance in crucial industrial areas, from high-tech semiconductors to rare earth elements vital for defense and energy technologies.
This assertive approach represents a new phase in U.S. industrial policy, blending economic investment with national security objectives as global competition intensifies for critical resources.