Mongolia Aims for Stronger Cooperation with the US on Rare Earths amid Global Economic Concerns
Mongolia’s Prime Minister, L. Oyun-Erdene, has expressed the country’s intention to deepen its collaboration with the United States in mining rare earths during a visit to Washington. However, he cautioned that an escalating new Cold War between the US and China could have damaging repercussions on the global economy.
Mongolia possesses vast deposits of rare earths and copper, both of which are crucial for high-tech applications, including defense equipment and efforts to transition to electric vehicles for combating climate change.
Following his meeting with Vice President Kamala Harris, Oyun-Erdene announced plans to sign an Open Skies civil aviation agreement, along with a commitment to further economic cooperation. He revealed that discussions between Mongolia and the US were already underway with regard to rare earths and critical minerals, as outlined in a memorandum of understanding signed in June between Mongolia’s Ministry of Mining and Heavy Industry and the US State Department.
While Mongolia aims to maintain positive relations with China, which currently controls most of the world’s rare earths deposits, Oyun-Erdene raised concerns about the potential consequences for countries caught between the rivalry of superpowers. Being landlocked between China and Russia, he emphasized the potential negative impact should a new Cold War intensify.
Oyun-Erdene stressed the importance for major powers to exercise responsibility in order to avert severe implications for numerous countries across the globe, particularly on the international economy.
In addition to mining cooperation, Mongolia is also exploring potential investment and collaboration with Tesla’s Chief Executive, Elon Musk, in the electric vehicle sector and space exploration. While Oyun-Erdene did not meet Musk during his current visit, he plans to visit California separately to meet the tech billionaire and other industry leaders.
Referring to Musk’s interest in colonizing Mars, Oyun-Erdene highlighted the comparable environment of Mongolia’s Gobi Desert and urged the billionaire entrepreneur to conduct research in this area.
During his visit to the US, Oyun-Erdene is scheduled to meet with representatives from NASA and Secretary of State Antony Blinken. He referred to the United States as Mongolia’s guiding Polar Star for our democratic journey and emphasized that discussions would center on enhancing democratic values.
Having shared borders with Russia, Mongolia has experienced the spillover effects of Russia’s invasion of Ukraine last year, resulting in difficulties such as inflation in the prices of mining explosives, according to Oyun-Erdene.
The Biden administration has placed significant emphasis on strengthening alliances with countries in Asia to counter China’s growing influence, as well as the Beijing-Moscow partnership described as no limits.
In conclusion, Mongolia seeks to establish deeper cooperation with the United States in the mining of rare earths, recognizing their economic significance in various industries. However, the Prime Minister expressed concerns over the potential consequences of an escalating US-China rivalry, calling on major powers to act responsibly to avoid negative impacts on the global economy.
