Under President Donald Trump’s administration, the United States government is increasingly taking direct equity stakes in companies that are deemed critical to national security, marking a shift in government involvement in key industries. The goal is clear: to reduce reliance on foreign powers, most notably China, and secure domestic control over vital resources and technologies. This approach touches sectors such as critical minerals mining, semiconductor manufacturing, and other strategic industries that the administration views as essential for economic and national defense security.
A prominent demonstration of this policy is the recent purchase of a significant stake in Trilogy Metals (NASDAQ: TMQ), a Canadian-based mining company focused on developing mineral resources in Alaska. The U.S. government announced a $35.6 million investment in Trilogy Metals after the market closed on Monday. This investment translated into a 10% ownership stake, alongside warrants to purchase an additional 7.5%, which immediately boosted the company’s shares by 7% in intraday trading, valuing Trilogy Metals at approximately $1.14 billion. This move is part of a larger effort to ensure critical minerals, such as copper, zinc, and rare earths, are sourced domestically or from trusted allies rather than relying on foreign adversaries.
This example is part of a wider strategy articulated in the February 2025 “America First Investment Policy,” wherein the Trump administration explicitly connects economic security with national security. The policy directs federal agencies to take a proactive role in securing investments and supply chains vital for the defense and technology sectors. It signals a deliberate pivot toward protecting and promoting U.S. companies operating in advanced manufacturing, semiconductors, biotechnology, aerospace, pharmaceutical production, and raw materials extraction.
Several notable investments have accompanied this shift. The government converted about $11 billion in prior grant funding into a 10% equity stake in the semiconductor giant Intel (NASDAQ: INTC), aiming to balance support with ownership that benefits the American taxpayer. Semiconductor manufacturing remains a high priority given global supply chain vulnerabilities and China’s dominance in related technologies. Agencies have also acquired stakes in companies such as Nvidia (NASDAQ: NVDA) and Advanced Micro Devices (NASDAQ: AMD), both major suppliers of semiconductor components, underscoring the focus on maintaining advanced technology leadership.
The administration has similarly invested in rare earth mining companies like MP Materials (NYSE: MP) and Lithium Americas (NYSE: LAC), reflecting concerns over the strategic importance of rare earth elements critical for military and clean energy technologies. It recently announced plans to secure a 5% stake in Lithium Americas and finalize a defense department deal to become the largest shareholder in MP Materials. These moves complement the Trilogy Metals investment and fit the broader goal of developing reliable domestic supply chains for minerals essential to the next generation of technology and defense systems.
Underlying this approach is a response to what the administration views as vulnerabilities arising from China’s significant control over sectors such as rare earth processing and semiconductor production. Increased tensions and geopolitical friction with China have pushed the U.S. to tighten restrictions on investments involving Chinese entities while bolstering collaboration and investment in partner countries. The government uses regulatory tools and equity investments not only to safeguard supply chains but to ensure that strategic industries remain domestically anchored and accountable to American economic interests.
The sectors targeted are varied but consistently vital. Besides mining and semiconductors, the government has shown interest in areas including healthcare manufacturing, pharmaceuticals, aerospace, advanced energy production, and infrastructure related to critical technology deployment. These investments often come with expectations of expedited permitting or regulatory support to streamline operations, as seen with the federal authorization for constructing a 211-mile roadway to support mining operations in Alaska’s Ambler District, a key area for mineral extraction supporting Trilogy Metals.
Critics argue that this increased government presence in commercial markets disrupts traditional free-market dynamics and could complicate corporate decision-making or international trade relations. However, supporters contend it reflects a pragmatic recognition that economic security is inseparable from national security in today’s complex geopolitical climate.
In the months ahead, investors and industry observers can expect the government to continue expanding its holdings in companies considered strategic. This evolving model moves beyond grants and subsidies to actual ownership stakes, reinforcing the message that support for these industries now involves sharing in their risks and rewards.
