Key Points

On Monday, the U.S. government announced significant investments in two metals companies, and both stocks flew higher. Shoring up domestic lithium supply is a top priority for this White House, making Standard Lithium a possible target for government investment. 10 stocks we like better than Standard Lithium ›

Shares of Standard Lithium (NYSEMKT: SLI) are soaring on Wednesday, up 8.3% as of 12:47 p.m. ET. The jump comes as the S&P 500(SNPINDEX: ^GSPC) and Nasdaq Composite (NASDAQINDEX: ^IXIC) rose by 0.5% and 0.8%, respectively.

This week, the Trump administration took equity stakes in both Trilogy Metals and Lithium Americas in an effort to beef up the U.S. supply of critical minerals. Standard Lithium's stock is rising on hopes a similar deal will be made in the near future.

Trump looks to secure the lithium supply

The White House announced the investments on Monday that give the U.S. government a 10% stake in Trilogy and a 5% stake in Lithium Americas. The strategy of direct investments in return for equity in public companies is not unprecedented, but the frequency and scale of investments from this administration are -- especially in peacetime.

The moves are all part of the administration's goal of bolstering industries critical to national security, especially those in which the U.S. lags behind China in some capacity. Lithium is critical to national defense, and this week's investments in two metals companies involved in lithium production renewed investors' hopes that Standard Lithium will be next.Image source: Getty Images.

While this is certainly a possibility, there's a lot of risk here if Standard is not selected. Its stock price is inflated at the moment on these hopes and could be hit hard if it is passed over.

Should you buy stock in Standard Lithium right now?

Before you buy stock in Standard Lithium, consider this:

The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Standard Lithium wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.

Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $642,328!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,134,270!*

Now, it’s worth noting Stock Advisor’s total average return is 1,064% — a market-crushing outperformance compared to 191% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors.

Story Continues

See the 10 stocks »

*Stock Advisor returns as of October 7, 2025

Johnny Rice has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.

Why Is Standard Lithium Stock Soaring Today? was originally published by The Motley Fool

View Comments