• Bull Street
  • Posts
  • 📈 Uncle Sam Takes Lithium Equity

📈 Uncle Sam Takes Lithium Equity

When the Federal Government becomes your business partner, smart investors take notice.

Author

Evelio Silvera
September 24, 2025

Good Morning


The Trump administration just demanded up to 10% equity in a lithium mining company in exchange for a $2.26 billion federal loan—marking a fascinating pivot toward state capitalism that sent shares rocketing 80% in after-hours trading.

🔎 Market Trends → Wall Street indexes end lower as investors digest Powell comments

And now


⏱ Your 5-minute briefing for Wednesday, September 24, 2025:

MARKET BRIEF
Before the Open

As of market close 09/23/2025.

Pre-Market

  • Halliburton (HAL) with a +7.3% gain, the strongest performer on the S&P 500.

  • Generac Holdings (GNRC) with a −10% drop, the weakest performer on the S&P 500.

Fear & Greed

 

Markets in Review

Wall Street Hits Pause Button — AI Stars Take a Breath

S&P 500 dipped –0.55 % to 6,656.92, ending its three‑day run. Nasdaq fell nearly –1 %, dragged by tech weakness.

The Big Picture:

The AI‑fuelled rally just ran into a reality check. Nvidia’s bold $100 billion OpenAI bet sparked skepticism — is it visionary or circular financing?

Fed Chair Powell added to the caution, warning equity valuations are “fairly highly valued” and signaling ambiguity on future rate cuts.

Offsetting the tech drag: gold marched to record highs (above $3,800/oz) and energy names held up nicely as investors rotated toward real assets.

Market Movers:

  • Nvidia (NVDA): loses the sizzle. Investors are asking if its OpenAI backing is more circular financing than strategic lever.

  • Oracle (ORCL): after surging on AI optimism, it’s now vulnerable to profit‑taking.

  • Micron (MU): bucked the tech tide with strong earnings and demand tied to AI hardware.

  • Energy & gold names: benefiting from macro and thematic tailwinds amid cautious equity flows.

What They’re Saying:

“Equity prices are fairly highly valued 
 it’s a challenging situation.” — Jerome Powell

WHAT WE’RE WATCHING
Events

  • Today: There are no events scheduled for today.

Earnings Reports

  • Today: Cintas, KB Home, Stitch Fix

  • Tomorrow: Costco, CarMax, Accenture, BlackBerry Limited

MARKET INSIGHTS
Leading News 

Trump's Lithium Play: When Government Bets Big on Battery Metals

Electric Car sign

Photo Credit: Micheal Marais

Why it matters:

The administration's demand for up to 10% equity in Lithium Americas (LAC) signals a seismic shift toward state capitalism in critical minerals—and savvy investors should take notice.

Zoom Out:

The $2.26 billion federal loan to Thacker Pass isn't just industrial policy—it's a masterclass in risk management. When government officials start saying "there's no such thing as free money," that's code for taxpayers becoming shareholders.

This Nevada project will produce 40,000 metric tons annually by 2028, enough lithium for 800,000 EVs. Meanwhile, the U.S. currently produces less than 5,000 tons. The math is compelling: America desperately needs domestic battery supply chains, and China controls 75% of global lithium refining.

Key Insights:

  • The China Factor: Beijing's lithium overproduction crushed prices, threatening project economics—exactly why Uncle Sam wants skin in the game

  • GM's Golden Handcuffs: The automaker's $625 million investment and 20-year offtake deal creates a captive buyer, reducing demand risk significantly

  • Market Validation: Shares rocketed 80% in after-hours trading to $5.54—the ultimate investor referendum

Market Pulse:

"President Trump supports this project. He wants it to succeed and also be fair to taxpayers,” a White House official told Reuters.

Bull’s Take:

When governments take equity stakes in strategic resources, they're telegraphing long-term commitment. Smart money follows the warrants.

Market Stories of Note

Boeing-Palantir AI Deal: Defense Contractors Get Smart:

Boeing's defense unit has partnered with Palantir (PLTR) to deploy AI across military production lines and classified projects, signaling the maturation of artificial intelligence from Silicon Valley darling to essential defense infrastructure. The partnership helps standardize data analytics across Boeing's sprawling defense operations while positioning Palantir as the go-to AI provider for sensitive government work—from nuclear reactors to missile systems. For investors, this validates the "picks and shovels" thesis: sometimes the companies selling tools to the gold miners (in this case, AI infrastructure to defense contractors) offer more predictable returns than the miners themselves.

The Great American Infrastructure Gamble Is Paying Off:

OpenAI's $500 billion Stargate project just brought its first data center online in Texas, signaling that America's AI infrastructure buildout isn't just PowerPoint presentations and press releases—it's real steel, concrete, and electricity flowing through actual facilities. The scale here defies comprehension: this single Texas facility could eventually consume enough power to run 750,000 homes, while the broader program aims to deploy 10 gigawatts of computing capacity by year's end. For investors watching the "picks and shovels" play unfold, Oracle (ORCL) and Nvidia (NVDA) aren't just selling AI dreams anymore—they're delivering the physical infrastructure that transforms those dreams into trillion-dollar realities, one gigawatt at a time.

CRYPTO
Fear & Greed 

 

Headlines