Washington - During a visit to Washington on Wednesday, Mongolia's Prime Minister L. Oyun-Erdene announced plans to strengthen collaboration with the United States in the mining of rare earths. However, he cautioned that an escalating "new Cold War" between the U.S. and China would inflict harm upon the global economy.
Mongolia possesses extensive deposits of rare earths and copper, crucial for advanced applications like defense equipment and President Joe Biden's push to electrify the automobile market for climate change mitigation.
Following a meeting with Vice President Kamala Harris, Oyun-Erdene shared insights with Reuters. He revealed their agreement to sign an "Open Skies" civil aviation pact, accompanied by commitments for enhanced economic cooperation.
Oyun-Erdene stated, "We have discussed our potential cooperation in mining rare earths, critical minerals, including copper." He emphasized the importance of collaboration with the United States, referring to it as Mongolia's "important strategic third neighbor." He pointed out that such collaboration was already in progress and would be further developed under a memorandum of understanding signed in June between Mongolia's Ministry of Mining and Heavy Industry and the U.S. State Department.
Despite Mongolia's aspirations for amicable relations with neighboring China, which holds control over most of the world's rare earth deposits, Oyun-Erdene cautioned against the detrimental impact of heightened superpower rivalry on countries like his, which are situated between China and Russia. He expressed concern about the complexities of a modern Cold War, exacerbated by rapid technological changes and global issues like climate change. He emphasized the responsibility of major powers to avoid severe adverse effects on numerous nations and the international economy.
Oyun-Erdene also revealed ongoing discussions with Tesla's CEO Elon Musk regarding potential investment and cooperation in the electric vehicle sector and space. Although not planned for this visit, he expressed his intention to visit California separately to meet with Musk and other tech industry leaders, especially to explore Musk's fascination with colonizing Mars.
Drawing attention to Mongolia's Gobi Desert, which shares a resemblance to Mars' environment, Oyun-Erdene urged Musk to explore this similarity for research purposes.
Throughout his visit, Oyun-Erdene's agenda includes a trip to NASA and a meeting with Secretary of State Antony Blinken. He hailed the United States as Mongolia's "guiding Polar Star for our democratic journey" and aimed to further discussions on bolstering democratic values.
Given its proximity to Russia, Mongolia has faced challenges stemming from Russia's invasion of Ukraine, including goods inflation due to disruptions in supply chains.
The Biden administration has been focused on nurturing relationships across Asia as a countermeasure against China's growing influence and the "no limits" partnership between Beijing and Moscow.