While all of us here in Washington are focused on the unfortunate government shutdown, let's look at what else is in the news today.
Well it's official: The U.S. government is taking a 5% stake in Lithium Americas and a 5% stake in the company's Nevada mining project, restructuring a $2 billion U.S. government loan agreement from 2024. In announcing the agreement Energy Secretary Christ Wright said, "It's in America's best interest to get that mine built," noting that its production and processing capabilities will help reduce China's hold on global lithium markets.
What impact does the government shutdown have on the commodities markets? They're all seeing gold. Investors are reportedly moving away from commodities like agriculture and energy and going for the safe haven of gold. As a result, gold prices are once again surging to record highs.
Finally, Australia is willing to sell shares in its new strategic reserve of critical minerals to allies as Western governments scramble to end their reliance on China. Sources say, for a cash investment in the reserve and a guarantee on how much they will take, Australia's allies will receive shares in the strategic reserve and would be entitled to a percentage of critical minerals the reserve holds.
