Toward a US-Mongolia Critical Minerals Partnership www.nationalinterest.org

China’s northern neighbor has the potential to help reduce US and global reliance on Beijing’s critical minerals.
China’s rocky relationship with Taiwan frequently sparks headlines, but its bond with Mongolia hardly ever does. Beijing, however, does not view Mongolia as just another neighbor. 

In his diaries from a 1974–1975 posting in Beijing, George HW Bush—then chief of the US Liaison Office in China—recalled a stunning admission from Deng Xiaoping. On the topic of Mongolia, which had been part of the Qing Dynasty territory prior to Mongolian independence in 1911, Deng complained to Bush that Mongolia had been “unfairly” taken away from China by Russia. Deng added that, while China would not attempt to retake Mongolia in the near-term, the situation could be different “in a hundred years.” 

Half a century has passed since Deng’s remark, and while much attention is paid to Beijing’s remonstrances regarding Taiwan—and rightly so—the Chinese Communist Party (CCP) holds similarly expansionist positions regarding Mongolia. 

The China-Mongolia question is not merely a historical curiosity or a matter of Inner Asian affairs; it is highly relevant to another facet of US-China competition: the need to develop supply chain alternatives to China’s current monopoly on rare-earth production and exports. 

In recent years, Chinese restrictions on rare-earth exports and near-complete control of rare-earth refining capacity have forced the United States and EU countries to develop alternative sources of supply and refinement rapidly. In this process, the opportunity for the United States to cooperate with Mongolia to develop and export Mongolia’s rare-earth reserves has been overlooked. 

China continues to aggressively seek control over Mongolia, not only for the neo-colonial reasons mentioned above, but also to further solidify its chokehold on global rare-earth supply chains by integrating Mongolia’s vast reserves into its extractive arsenal. 

Mongolia, a sparsely populated nation of 3.5 million people, sandwiched between Russia and China, is estimated to hold about 17 percent of world reserves, second only to China’s 24 percent share. In June 2023, Mongolia and the United States signed a Memorandum of Understanding in which both sides “agreed to advance secure and resilient critical mineral supply chains in the Indo-Pacific region.” 

One month before the agreement was signed, French President Emmanuel Macron visited Mongolia. Part of his visit focused on enhancing cooperation between Orano, a French nuclear company, and MonAtom, Mongolia’s state-owned nuclear enterprise, regarding the Zuuvch Ovoo uranium mine in southern Mongolia. In January 2025, Orano and MonAtom reached an agreement to develop Zuuvch Ovoo jointly. 

France has clearly recognized the value of joint mineral exploration in Mongolia. The time has come for the United States to do the same, based on the following principles:

First, Mongolia and the United States share a joint commitment to constitutional governance, democracy, and freedom of speech.

Second, Mongolia holds a large share of the world’s rare-earth reserves and would greatly benefit from their development.

Third, the United States maintains a strategic interest in sourcing refined rare-earth elements from countries not identified as nations of concern. 

Based on these principles, the United States and Mongolia should consider the following avenues of cooperation:

1. Joint development of rare-earth deposits in Mongolia involving an American-Mongolian consortium of companies. 

2. Development Finance Corporation (DFC) financing of rare-earth refining capacity in Mongolia, in concert with the French, South Korean, and other countries with relevant capabilities.

3. DFC partial financing of a nuclear power plant in Mongolia, solving long-term issues with the capital, Ulaanbaatar’s, power supply, and divesting Mongolian energy supply away from Russia and China.

4. DFC financing of American-made agricultural equipment sales to Mongolia, as American agricultural equipment is best-in-class and highly sought after in Mongolia. Further sales would strengthen Mongolian food security while supporting America’s productive economy. 

5. Department of State authorization of Farmer-in-Residence and Rancher-in-Residence positions at the US Embassy in Ulaanbaatar, to provide expert technical advice to the Mongolian agricultural sector and build on shared cultural traditions of horsemanship.

For cooperation to be lasting and effective, Mongolia must ensure that American investors are protected and not subject to arbitrary regulations. At the same time, the use of DFC financing, given its clear sponsorship from the US government, will help to deter regulatory irregularities.

However, the largest obstacle to effective and realistic US-Mongolia engagement is China’s attempt to reduce Mongolia to a vassal state entirely reliant on the People’s Republic of China. China’s neo-colonial approach to Mongolia is causing concern among foreign investors in Mongolia’s rare-earth sector. Since shipping Mongolian products through China is the most cost-effective, China’s unpredictable policies could delay or seize rare-earth shipments destined for countries such as the United States or Japan. 

To counteract potential anti-trade measures from China, multinational, coalition-based financing and extraction efforts ought to be utilized. Indeed, China has demonstrated a clear appetite for imposing punitive measures on American companies seeking to develop alternative supply chains outside China-dominated industries, such as the rare-earth industry. 

However, China is far less likely to inflict such punitive measures if rare-earth development projects are organized at the multilateral level. While Beijing pulls no punches when criticizing or inflicting punitive measures on the United States, it is less likely to engage in disruptive activity if countries such as South Korea or France are involved. 

To prevent yet another democratic, America-aligned ally from falling further into China’s grip, the US and its partners must pool readily available institutional resources with a sense of urgency. After all, there is much to be gained in the process.

About the Author: Edward Owen
Edward Owen is a senior policy analyst in the Asian Studies Center at the Heritage Foundation. His work analyzes Chinese activity in Southeast Asia and Latin America. Before joining Heritage, Owen worked as a director at Baron Public Affairs, a political risk consultancy. At Baron, he supported consulting projects for private-sector clients and the US Department of War, providing insight into PLA strategy, CCP bureaucracy, regulatory culture, and global Chinese commercial networks. His role at Baron saw him travel extensively across Southeast Asia, including Thailand, Malaysia, and the Philippines. Hollins Randolph, a former member of Heritage’s Young Leaders Program, contributed to this article.

New Gypsum Board Plant Opens to Meet Domestic Demand www.montsame.mn

New Progress Group’s subsidiary Eco Drive LLC has officially launched its “Alpha” eco gypsum board factory in Sergelen soum, Tuv aimag.

Mongolia currently imports gypsum boards worth around MNT 100 billion each year. The new factory is expected to fully meet domestic demand, allowing the country to retain that amount within the local economy annually.

President Khurelsukh Ukhnaa attended the opening ceremony and wished success to the group and company staff. He also urged businesses in the construction sector and citizens to support domestic producers by buying locally made products.

The factory’s launch has created permanent jobs for more than 100 locals.

Mongolia imported 8.8 million square meters of gypsum board in 2023, and the figure more than doubled to 18.5 million square meters by 2025. According to the sector ministry, the government aims to develop domestic manufacturing not only to replace imports but also to create export-oriented, value-added production that meets international standards.

New Progress Group has operated in infrastructure, manufacturing, energy, and construction since 2000. The group has more than 10 subsidiaries and over 1,500 employees. Its major project, the Khovd Eco Cement plant, produces 250,000 tonnes of cement annually — enough to build 504 kindergartens — and supplies the western region of Mongolia.

Investment in Forestry Sector to Be Intensified www.montsame.mn

The European Investment Bank is considering providing up to EUR 100 million in loans to Mongolia’s forestry sector and is working with other development partners and financing institutions to establish an overall investment package of up to EUR 200 million.

According to the Ministry of Environment and Climate Change, the matter was discussed during a meeting between Deputy Minister Munkhtamir Batbayar and representatives of the European Investment Bank, including Jean Philippe Stijns and Alexander Horst, as well as representatives of the Delegation of the European Union.

During the meeting, they reviewed the progress of the feasibility study for the “Sustainable Forest Management and Bioeconomy” investment program planned under the European Union’s Global Gateway initiative. The parties also discussed project management, implementation structure, coordination among participating organizations, and financing opportunities.

Deputy Minister Munkhtamir noted that the investment program proposal has already been submitted to the Ministry of Economy and Development for inclusion in the 2027 development plan, adding that preparations are being intensified in cooperation with other ministries and organizations.

The parties also exchanged views on presenting the investment roadmap and study findings during the 17th Session of the Conference of the Parties to the United Nations Convention to Combat Desertification (COP17), to be held in Ulaanbaatar, to attract additional international investment.

‘Xac Broncos’ Win Bronze at Asian Champions League www.montsame.mn

Mongolian professional basketball team “Xac Broncos” (competing as the Chinggis Broncos) secured the bronze medal at the 2026 Asian Champions League.

The team advanced to the semifinals after recording one win and one loss in the final stage. They later fell to Hong Kong’s South Athletic China by a score of 75–90, sending them to the bronze medal match.

In the third-place game on May 24, the Mongolian team defeated Indonesia’s league champion Dewa United 84–66, finishing in third place. With this result, the team has now won medals at the tournament in consecutive years after capturing the championship title last year.

In the bronze medal game, State Honored Athlete Bilguun B. recorded seven points, seven rebounds, eight assists, and one block in an all-around performance. Meanwhile, Azbayar A. led the scoring with 15 points along with eight rebounds and three blocks, while Ikhbayar Ch. added 14 points and four rebounds.

Speaking at the post-game press conference, Bilguun said, “The Indonesian team was very strong. We performed below expectations in the first game, but we tried not to repeat our mistakes in the bronze medal match. We aimed to defend our title but could not achieve it. Still, a bronze medal is something you earn through victory, so we are happy. Next year, we will adapt to the rule changes.”

The 2026 Asian Champions League title was won by Hong Kong’s South Athletic China.

Minneapolis restaurateur Billy Sushi hosting 4 youth hockey players from Mongolia www.cbsnews.com

The man known as Billy Sushi is hosting four youth hockey players and two coaches 6,000 miles from home.

The popular Minneapolis restaurateur was visiting his home country, Mongolia, when he saw something that reminded him of his current home.

"Driving through this tiny mining town and I saw this old Soviet Union era hockey rink," he said. "So, I go over and I saw there was a couple people hanging around. I said, 'You guys play hockey?' and they said, 'Yeah, we do play hockey.' And I'm like, 'Show me!'"

That was the start.

"Minnesota is so crazy. It's good," said 13-year-old Gerelt Dulguun, who they affectionately call "G-Man."

The outdoor rinks in Baganuur, Mongolia, are only open three months a year, so this trip to the State of Hockey is a hockey culture shock.

"They come out, they're skating, they are like 'Oh my god this is so flat, so clean!'" said Billy, on the first time the kids, ranging from ages 15 to 13, stepped on a Minnesota sheet of ice. "They come back and they're like, 'I can go fast,'"

The players have been practicing and playing tournaments with the local Pro Hybrid development program.

"Their passion is they're looking to learn the game and see what it is here in our communities, where hockey is such a big part of the fabric of our communities here, and getting a chance to showcase that has been awesome," said coach Brendan Cook.

The players have been practicing twice a day. They even took third place at a tournament held at Minnetonka High School.

When the Wild were still in the NHL playoffs. They got to meet Kirill Kaprizov and Matt Boldy at Grand Casino Arena and watch a playoff game.

"'British Days 2026' was held." www.britishbusinesscentre.com

‘Golden Gerege’ awarded to UK Ambassador Fiona Blythe www.ubpost.mn

Minister of Foreign Affairs B.Battsetseg received Fiona Blythe, Ambassador of the United Kingdom of Great Britain and Northern Ireland to Mongolia, during an official meeting focused on bilateral cooperation and diplomatic relations.

During the meeting, the foreign minister highlighted the steady growth of relations and political dialogue between Mongolia and the United Kingdom in recent years. She noted that cooperation between the two countries has expanded across a wide range of sectors, including trade, investment, education, culture, and environmental protection.

The minister also praised Ambassador Fiona Blythe for her active efforts in strengthening bilateral ties and acknowledged her contribution to advancing Mongolian-British relations. In recognition of her work, he presented the ambassador with the Ministry of Foreign Affairs’ “Golden Gerege” award.

Ambassador Fiona Blythe, in turn, reflected warmly on her time serving in Mongolia and expressed satisfaction with the successful development of cooperation between the two countries during her tenure. She also thanked the Government of Mongolia and the Ministry of Foreign Affairs for their continued support and close collaboration throughout her diplomatic mission.

Mongolia and EAEU sign interim trade agreement www.gogo.mn

During a virtual bilateral meeting held on May 22, 2026, the Ministry of Economy and Development of Mongolia and the Eurasian Economic Commission (EEC) officially signed a Joint Statement regarding the Interim Trade Agreement between Mongolia, the Eurasian Economic Union (EAEU), and its member states.

The document was signed by J.Enkhbayar, Mongolia's First Deputy Prime Minister and Minister of Economy and Development, on behalf of the Mongolian government. Representing the Eurasian Economic Commission was Andrey Slepnev, Member of the Board and Minister in charge of Trade for the EEC.

The formal execution of this joint statement officially confirms that the milestone trade pact will go into effect on July 22, 2026, paving the way for enhanced economic cooperation and commerce between the regions. 

Russia loses to Mongolia and Indonesia in coal exports to China www.open.kg

In April 2023, Mongolia significantly increased its coal exports to China, allowing it to surpass Indonesia, which had long been a leader in this segment. According to the General Administration of Customs of China, Mongolia sent 11.33 million metric tons of coal to the neighboring country, while Indonesia exported 11.12 million tons, which is 22% less compared to the same period last year.
The decrease in shipments from Indonesia, which amounted to 8% in the first four months of the year, did not prevent it from maintaining its leadership in total exports, totaling 61.43 million tons compared to 39.37 million tons from Mongolia, which demonstrated an impressive growth in shipments of 61% compared to last year.

Analysts note that the decline in coal prices in the domestic market of China has reduced the competitiveness of Indonesian supplies. At the same time, Indonesia has presented an ambitious plan that may cause further instability in the market. The new plan for the centralization of coal and other goods exports under the management of a state-owned company, announced by President Prabowo Subianto, raises concerns among investors worried about control over pricing.

Coal imports from Russia and Australia have also noticeably decreased: in April, volumes fell by 30% and 39% respectively. This trend was part of an overall reduction in coal imports to China, which decreased by 14% year-on-year in April, totaling 33.1 million metric tons. Since the beginning of the year, the decline has been 2.1%, leading to a total import volume of 149.4 million metric tons.

Record 46,000 runners join Ulaanbaatar Marathon 2026 www.qazinform.com

The “Ulaanbaatar Marathon 2026” international race drew record-breaking participation this year, with more than 46,000 runners and athletes joining the event across all categories. The 5-kilometer race saw the biggest growth compared to previous years, attracting around 23,000 runners alone, MONTSAME reports.

The marathon featured several race categories: full Marathon (42 km) – more than 700 runners; half Marathon (21 km) – thousands of participants, including elite local and international athletes; 10 km Sports Run – strong participation from amateur and professional runners; 5 km Health Run – around 23,000 runners; and 1.5 km Family Run – families and children joined in large numbers. A total of 17,000 people have participated in the 21km and 10km races.

Notable athletes competing in the 21 km half marathon included Mongolia’s Honored Athlete Ser-Od B., international master runners Sarangua B., Munkhbayar N., Bat-Erdene G., and Natsagdorj O. International participants included Japanese runners Higuchi Daisuke and Ishikawa Ryuga, British runner James Drakeford, Russian athlete Vdovina Aleksandra Mikhailovna, and Chinese runner Cui Wei Kang.

Organized annually to promote running sports and encourage healthy, active lifestyles, the Ulaanbaatar Marathon has become one of Mongolia’s largest sporting events.

The growing number of participants reflects the rising popularity of running and fitness culture in Mongolia, as thousands gathered in the capital city to celebrate health, endurance, and unity.

Earlier, it was reported that robot had set the world record at Half Marathon in Beijing.

Tatyana Kudrenok