The U.S. government is taking a 10% stake in Trilogy Metals Inc. (TSX:TMQ), a Vancouver-based mineral exploration company, in a move to secure domestic sources of copper. The US$35.6 million investment is coupled with a major catalyst: an executive order from President Donald Trump to build the Ambler Road, providing crucial access to Trilogy’s mining interests in a remote region of Alaska. This government backing highlights a growing trend of direct intervention to shore up America’s supply of critical minerals.
The Ambler Road project is key to unlocking the value of the copper-rich district. The project was previously approved during the first Trump administration but was later blocked by the Biden administration due to concerns about its impact on wildlife and local Indigenous communities. Its revival is a significant win for Trilogy, clearing a major infrastructure hurdle. CEO Tony Giardini called the partnership a “significant milestone” for developing a secure domestic mineral supply for U.S. energy, technology, and national security.
This investment is not an isolated event. It follows a similar deal where the U.S. government took a minority stake in another Canadian-based miner, Lithium Americas (TSX:LAC)(NYSE:LAC), to develop the Thacker Pass lithium mine in Nevada. That project is seen as essential to reducing U.S. reliance on China for lithium, a key component in batteries for electric vehicles and electronics. Both deals signal a clear strategic shift by Washington to invest directly in private companies to secure resources deemed vital to the national interest.
For investors, the direct government support and the approval of the Ambler Road significantly de-risk Trilogy’s path forward. However, the project’s controversial history suggests that political and regulatory challenges could re-emerge. This makes Trilogy Metals a compelling but speculative opportunity, best suited for investors with a high tolerance for risk who are bullish on the long-term onshoring of critical mineral production.
Trilogy’s stock has soared more than 500% this year while Lithium Americas is up around 140%.