With a career focused on ensuring the strategic and responsible use of critical minerals, Pini brings unparalleled insight into how these minerals are shaping the future of global technology, economics, and security. Together, we explore why critical minerals matter, the risks of repeating history’s mistakes, and why the next generation must act now to secure a stable and prosperous future.
Rare Earths and the Lessons of History
Critical Minerals , such as rare earths, lithium, gallium and antimony, aren’t just scientific curiosities; they are the unsung heroes of the digital age. From powering the battery in your electric vehicle to enabling advanced defense systems and even the chipsets that make smartphones “smart,” critical minerals have quietly become the lifeblood of modern technology. Without them, the innovations driving global progress would grind to a halt.
But there’s a catch. China accounts for approximately 60% of global production and 90% of processing capacity of critical minerals. This concentrated control echoes the oil dynamics of the 20th century—a stark reminder of how dependence on a critical resource can reshape geopolitics, destabilize economies, and weaken democracies.
Deng Xiaoping, the former leader of China, is famously quoted as saying in 1992:
“The Middle East has oil, China has rare earths.”
This statement underscored China’s strategic advantage in controlling a significant portion of the global rare earth elements supply, which are crucial for modern technologies such as electronics, renewable energy systems, and military applications. The quote has since been widely referenced to highlight the geopolitical importance of rare earths.
For the younger generation, the parallels are striking. Much like oil’s grip on the 20th century, critical minerals will define the 21st century. The stakes are even higher: manage these resources wisely, and we unlock a future of technological marvels and economic growth, not to mention the sustainability factor. Mismanage them, and we risk repeating the mistakes of the past—corruption, conflict, and environmental degradation.
The challenge for the next generation is clear: critical minerals are not just another resource; they are a gateway to innovation, sustainability, and global stability. To avoid the pitfalls of history, we must approach them with foresight, responsibility, and a commitment to equity.
The Oil-Democracy Paradox: A Repeating Phenomenon
Empowering Bad Actors:
For decades, nations rich in oil have seen wealth concentrated in the hands of authoritarian regimes, leading to corruption and stifling democratic growth. Rare earths, if left unchecked, could replicate this pattern, empowering similar regimes and exacerbating global tensions.
Economic Instability: Consider the rollercoaster of oil prices and its impact on global markets. Nations overly dependent on oil, like Venezuela, have faced devastating economic crises. Now imagine a similar volatility rippling through industries that rely on rare earths, such as tech manufacturing and defense.
Weakening Democracies: Oil dependency shaped decades of U.S. foreign policy, often forcing alliances with unstable regimes. The emerging critical minerals dependency—particularly on China—raises similar concerns. How can democracies maintain their principles while dependent on resources controlled by authoritarian systems?
The New Frontier: Rare Earths as a Geopolitical Flashpoint
critical minerals are not like oil in that they don’t generate energy directly. Instead, they amplify the potential of other technologies. Without critical minerals, the electric vehicles that promise a greener future wouldn’t move an inch, and the semiconductors driving AI and machine learning would cease to function.
Yet, China’s dominance in mining and processing critical minerals has turned these minerals into a geopolitical bargaining chip. Beijing’s recent export restrictions highlight just how vulnerable global supply chains are. For the U.S., which relies heavily on imported rare earths, this is a wake-up call. We must diversify our sources, bolster domestic production, and prioritize ethical mining practices.
The Responsibility of the Younger Generation
Why This Matters to Young People:
Critical minerals will shape the economic and technological opportunities of the 21st century. For young innovators, entrepreneurs, and policymakers, this is not just a challenge but an opportunity to drive progress.
Lessons from Oil: The mismanagement of oil serves as a cautionary tale. The environmental degradation, economic instability, and political conflicts tied to oil dependency show us what happens when we fail to act responsibly. critical minerals present a second chance—a chance to learn from the past and build a more sustainable future.
Opportunities to Act
- Demand Accountability: Advocate for policies that incentivize domestic production and recycling of critical minerals.
- Innovate: Support research into alternative materials and technologies that reduce reliance on finite resources.
- Collaborate: Push for international agreements that ensure ethical and sustainable mining practices.
Working Towards A Better Outcome
Critical minerals are more than just elements; they are a lens through which we can view the future of humanity. They represent the promise of innovation, the potential for economic growth, and the perils of mismanagement.
For the younger generation, this is a defining moment. The choices we make today about how we source, manage, and use rare earths will ripple across the decades, shaping not just the technologies of tomorrow but the values of the societies that create them.
Let us not repeat the mistakes of the past. Let us learn from the history of oil, embrace the responsibility of stewardship, and work together to ensure that critical minerals are a force for progress, equity, and sustainability.
The future isn’t just something that happens—it’s something we build. And critical minerals is the foundation.
About Pini Althaus
Pini Althaus is an accomplished mining executive with extensive experience in the rare earths and minerals industry. Pini Althaus founded and served as CEO of USA Rare Earth, driving the company’s rapid growth to a $1 billion valuation in just four years. Under Pini Althaus’ leadership, USA Rare Earth acquired an 80% stake in the Round Top project in Texas, known for its rich deposits of rare earth elements, lithium, gallium, zirconium, and beryllium. In 2020, the company opened North America’s first rare earth pilot processing facility and acquired the only NdFeB magnet production system in the Americas.
Pini Althaus expanded his portfolio in 2023 when Cove Capital, a firm he leads, secured strategic critical mineral licenses in Kazakhstan and entered into a partnership with Kazakhstan’s sovereign wealth fund, Samruk Kazyna, and state-owned mining company, Tau-Ken Samruk, to develop the Akbulak rare earth project. Additionally, Pini Althaus serves as CEO of REEMAG LLC, a company advancing the world’s first carbon-free magnet recycling process.
Pini Althaus is a trusted advisor on critical minerals supply chains, having provided counsel to the UN and U.S. administrations. He is widely recognized as an expert in critical minerals, with his insights featured in top media outlets. Pini Althaus has also played a key role in identifying valuable mining opportunities, including Argentina’s Hualilan gold project, which has grown to a world-class resource with over 3 million ounces of gold, and Panama’s Cerro Chorcha deposit, which he helped expand into a large Cu-Au-Ag resource valued at $570 million.
A founding partner of Cove Capital LLC, Pini Althaus’s expertise spans across the U.S. and Australia, cementing his reputation as a leader in the mining industry.
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