Trump Admin’s Investments: Companies Targeted for US Equity Stake

Under Trump’s leadership, the US converted roughly $11 billion in Biden-era Chips Act grants into a 10% equity stake. Commerce Secretary Howard Lutnick, who helped lead the talks with the chipmaker, said it was a mistake to award grants without securing anything in return.

“America should get the benefit of the bargain,” Lutnick told CNBC before the deal ultimately came together. “I mean, that is exactly Donald Trump’s perspective, which is, Why are we giving a company worth $100 billion this kind of money? What is in it for the American taxpayer?’ And the answer Donald Trump has is we should get an equity stake for our money.”

Intel shares have gone up over 25% in the month since the announcement. The company has also cautioned in securities filings that the US stake could pose some risks, including potentially hurting international sales.

In July, the Defense Department announced that it would become the largest shareholder in MP Materials after agreeing to buy $400 million worth of shares.

MP Materials owns the operational rare earth mine in the US. Trump administration officials have said it is a national security risk for the US to continue to rely on China and other foreign nations for the key minerals needed for everything from iPhones to military jet engines.

MP Materials CEO James Litinsky said that he views the deal as a “public-private partnership” that is different than the government’s agreement with Intel.

“Those are scenarios where you had commitments from a past administration, where the Trump administration has come in and said, wait a second, you had no-strings attached commitments to companies, we think we should get a piece of the action,” Litinsky told CNBC.

Shares in MP Materials have roughly doubled since the deal became public.

A Trump administration official confirmed to Business Insider that the Trump administration is asking for a small equity stake in Lithium Americas as part of a broader renegotiation of a $2.26 billion government loan.

Lithium Americas said it is in discussions with the Department of Energy and General Motors, its partner in a mining project in Thacker Pass, as first reported by Reuters. The Nevada area where the mine is located is believed to have one of the world’s largest lithium deposits.

Trump approved the project during his first term, but the Energy Department loan was finalized during the Biden administration.

The administration official said the Energy Department agreed to restructure the loan by pushing out part of its repayment. In exchange, the Trump administration wanted a “very, very small equity share” to “create more of a cash buffer for the project.”

Shares in Lithium Americas went up over 93% on September 24 after news of a potential stake became public.

In August, Lutnick said that the Pentagon was considering taking stakes in defense contractors. He specifically named Lockheed Martin as a potential example.

“They are essentially an arm of the US government,” Lutnick said of Lockheed.

Asked about any possible discussions, a Lockheed Martin spokesperson praised the contractor’s relationship with the Trump administration.

“As we did in his first term, we are continuing our strong working relationship with President Trump and his Administration to strengthen our national defense,” a spokesperson told Business Insider in a statement.