Tesla Inc (NASDAQ:TSLA) CEO Elon Musk met virtually with Prime Minister Luvsannamsrain Oyun-Erdene from Mongolia on Tuesday where the two discussed potential investments and cooperation in the electric vehicle sector.
Mongolia is abundant in valuable resources such as coal, copper, gold, silver, and various metallic ores. Over the past years, foreign investors have shown significant interest in Mongolia's Oyu Tolgoi mine, primarily focusing on its gold and copper reserves. Nevertheless, there is growing speculation that Tesla, the renowned electric vehicle manufacturer, may harbor a particular interest in a different mineral found within Mongolia's mines—lithium.
In 2020, reports of large lithium deposits in Mongolia started to spread, making the country a frontier of Li exploration and extraction. Li Ion Energy, which claims to be Mongolia’s first Li brine explorer and developer, has a Baavhai Uul lithium brine project that spans 80,000+ hectares that yield average grade of 426ppm lithium and max grade 811ppm Li. Additionally, China Mining Resources Group Co., LTD purchased Ltd URT lithium mine project in Mongolia back in February 2023 for $20 million.
“We have a number of diversification plans in place to boost investment opportunities in Mongolia stemming from our landmark “New Recovery Policy,” which will create an investment-friendly climate. Our overarching message to foreign investors is clear: Mongolia is open for business,” said the Mongolian Prime Minister in an interview.
Shares of TSLA are up 1.51% near end of trading on Wednesday.