Lithium Americas surges as Washington moves into critical minerals

Shares of Lithium Americas (NYSE: LAC) skyrocketed by more than 90% in a single trading session following President Trump’s announcement that the U.S. government will take a stake in the company. The move highlights the growing focus on securing supply chains for rare earth metals amid intensified trade negotiations with China. As concerns over resource independence mount, this unexpected government involvement signals potential shifts in the market.

This development isn’t isolated. Recently, the government also acquired a multi-million-dollar stake in Intel Corporation (NASDAQ: INTC), signaling an active period of consolidation across the tech sector. While not directly related to rare earths, these moves demonstrate the increasing agility of investment capital and government influence in key industries.

The swift and strategic investments raise the likelihood that other companies in the lithium and critical minerals space—like Albemarle (NYSE: ALB) and Uranium Energy (NYSEAMERICAN: UEC)—could soon become targets for acquisition, creating meaningful upside opportunities for savvy investors.

The electric vehicle (EV) boom and advancements in semiconductor technology are fueling demand for lithium, positioning Lithium Americas as a key player. With the global race for artificial intelligence and clean energy intensifying between the U.S. and China, lithium could become a highly prized commodity.

Even without further deals, investing in lithium-related stocks offers solid exposure to these long-term megatrends—trends that continue to drive Lithium Americas to new 52-week highs. At just $1.4 billion in market cap, the stock presents a favorable risk-reward ratio, with limited downside potential. Current short interest stands at $82.6 million—or roughly 11.5% of shares outstanding—setting the stage for a potential short squeeze that could push the stock even higher.

While Lithium Americas may still be proving itself, Albemarle has established a strong foothold in lithium mining. The company recently stunned markets with quarterly earnings of 11 cents per share, far surpassing expectations of an 83-cent loss. Forward estimates project earnings of $2.74 per share in the upcoming quarter, signaling robust growth potential.

Even if upcoming results fall short, Albemarle’s stock remains well-positioned at just 72% of its 52-week high, offering a compelling risk-to-reward scenario. Whether driven by its fundamentals or acquisition prospects, Albemarle stands out as a key name to watch.

While lithium dominates headlines today, uranium is quietly entering a long-term bull cycle. The U.S. recognizes that expanding onshored data and AI infrastructure will demand significantly more electricity, and nuclear power could play a central role in meeting this need.

In August 2025, Caxton Associates increased its stake in Uranium Energy to $27.8 million, driven by a bullish target from Canaccord Genuity’s Katie Lachapelle, who set a $17.50 price target against a consensus of $11.63—implying 28% upside.

Even if government agencies or large players don’t directly invest in uranium, strong fundamentals and positive sentiment fueled by the lithium rally suggest UEC could stage a justified bull run, benefiting shareholders over the long term.