Core Viewpoint - The U.S. government is increasingly adopting industrial policies similar to China's in response to concerns over supply chain vulnerabilities, particularly in critical sectors like rare earths and lithium [1][2][6]. Group 1: U.S. Industrial Policy Shift - The U.S. government is considering acquiring up to 10% of Lithium Americas, which is developing the world's largest known lithium resource at the Thacker Pass mine in Nevada, aiming to bolster domestic battery supply chains [4]. - A recent deal with MP Materials, a U.S. rare earth producer, involved a multi-billion dollar transaction, making the U.S. Department of Defense the largest shareholder [5]. - The U.S. also acquired a 10% stake in Intel, the only company capable of manufacturing advanced chips domestically, with a total investment of $8.9 billion, partly funded by the CHIPS and Science Act [6]. Group 2: Concerns Over Supply Chain Vulnerabilities - Analysts highlight that the U.S. recognizes that relying solely on market forces may not ensure sufficient domestic supply for strategic industries, particularly in defense technology and advanced electronics [2]. - Geopolitical tensions are driving U.S. concerns about potential disruptions in semiconductor and critical mineral supply chains [2]. Group 3: Challenges in Implementing Industrial Policy - The U.S. has not engaged in industrial policy for over 40 years, leading to questions about its ability to effectively implement such strategies [6][7]. - Despite recognizing the risks of dependency on Chinese rare earth supplies since 2010, the U.S. has made slow progress in policy formulation and industry development, facing environmental and market-related challenges [7][8]. - The lengthy process of establishing a rare earth mine in the U.S. can take up to 29 years, highlighting the difficulties in reviving the domestic rare earth industry [7].

Group 1 - Apple (AAPL.O) plans to purchase US-made rare earth magnets from MP Materials' factory located in Texas [1] - Both companies will collaborate to build another factory in Fort Worth, Texas [1]

Group 1 - Apple (AAPL.O) is expected to announce an investment of $500 million in rare earth producer MP Materials [1]

Group 1 - Delta Air Lines (DAL.N) surged 11% after reporting Q2 earnings that exceeded expectations and reinstated full-year guidance [1] - American Airlines Group (AAL.O) rose 7.3%, while Southwest Airlines (LUV.N) increased by 3.4% [1] - TSMC (TSM.N) saw a 0.4% increase in stock price, with Q2 sales up 39% year-over-year [1] Group 2 - MP Materials, a rare earth producer, experienced a nearly 60% surge in stock price following a multi-billion dollar contract with the U.S. Department of Defense [1]