Marketplace talks regularly about the yearslong effort by the U.S. government to onshore its supply of critical minerals. Those are raw materials used in everything from smartphones to fighter jets. 

While the government was ostensibly closed yesterday, it took another step forward in that effort. The Trump administration announced it’s taking a 5% equity stake in Lithium Americas, the company that’s working to open up a lithium mine and processing facility at Thacker Pass in Nevada.

The Trump administration has taken partial ownership of other mining firms, as well as Intel. There was also that whole “Golden Share” with U.S. Steel. But in this case, at the same time the government is investing in lithium production, it is also undercutting domestic demand for that very lithium.

Once it’s up and running, Thacker Pass could be one of the most productive lithium mines on Earth, said Saleem Ali, a professor of geography at the University of Delaware.

“So, this one definitely will help the U.S. in terms of supply security from mine to market,” said Ali.

And that market can be summed up pretty simply, said Jessika Trancik at MIT: “Lithium-ion batteries.” Like those used in electric vehicles.

“When we look globally, the growth in EV demand continues to be strong,” she said.

Here in the U.S. though, things look a little different.

”EVs have not been stated priorities of the Trump administration thus far,” said Morgan Bazilian at the Colorado School of Mines

In fact, the administration ended tax incentives for EVs just this week. Carmakers said that will hurt sales of EVs and the lithium they contain.

“The demand side of that equation certainly will take a hit,” Bazilian said.

This policy dissonance — support for lithium production but not for the products that use it — raises a question for Chris Berry, president of the consulting firm House Mountain Partners.

“If we are going to be producing lithium domestically, which is the intent with Lithium Americas, where will it go?” said Berry.

He said there is still a robust global demand for the metal, even though the market is well-supplied at the moment. But more broadly, Berry said the U.S. push to control its mineral supply is starting to resemble that of its chief economic competitor.

“It seems like we are becoming more Chinese, right? We're picking a national champion, and we're sort of subsidizing the company or, or, you know, anointing the company,” Berry said.

If all goes to plan, Thacker Pass will begin full-scale production in 2028, as one of just two lithium mines in the U.S.