Lithium Americas Corp. (LAC) saw its stock plummet by 5.09% during Tuesday's trading session, following news that the Trump administration has acquired a 10% stake in the company. This move is part of a broader strategy by the U.S. government to secure domestic supply chains for critical minerals and reduce reliance on foreign sources, particularly China.

The administration's investment in Lithium Americas is not an isolated incident. It follows a pattern of direct government involvement in key industries, with stakes also taken in other companies such as MP Materials, Trilogy Metals, and even tech giant Intel. This shift from traditional subsidies to direct ownership marks a significant change in U.S. industrial policy, framed as a national security strategy.

While the government's investment aims to strengthen the domestic lithium supply chain, crucial for electric vehicle batteries and other high-tech applications, the market's initial reaction appears negative. Investors may be concerned about the implications of government involvement on the company's autonomy and future operations. As this new era of government intervention in critical industries unfolds, it remains to be seen how it will impact the long-term prospects of companies like Lithium Americas and the broader market for critical minerals.