Think Tank in the U.S. Advocates: America Should Focus on Mongolia’s Critical Minerals

Mongolia, China’s northern neighbor, has the potential to help the United States and the world reduce dependence on Beijing’s critical minerals.

Mongolia is a sparsely populated country with only 3.5 million people, located between Russia and China. It is estimated to hold about 17% of the world’s rare earth reserves—second only to China’s 24%. In June 2023, Mongolia and the United States signed a memorandum of understanding agreeing to "advance secure and resilient critical mineral supply chains in the Indo-Pacific region."

One month prior to the agreement, French President Emmanuel Macron visited Mongolia. A key focus of the visit was strengthening cooperation between France’s nuclear energy company Orano and Mongolia’s state-owned nuclear enterprise MonAtom on the Zun Tsoov uranium project in southern Mongolia. In January 2025, Orano and MonAtom reached an agreement to jointly develop the Zun Tsoov uranium mine.

France has clearly recognized the value of joint mineral exploration in Mongolia. Now, the United States should take similar action based on the following principles:

First, Mongolia and the United States share common commitments to constitutional governance, democracy, and freedom of speech;

Second, Mongolia possesses a large portion of the world’s rare earth reserves, and developing these resources would bring significant benefits to the country;

Finally, the United States has strategic interests in sourcing refined rare earth elements from non-"countries of concern."

Based on these principles, the United States and Mongolia should consider the following collaborative pathways:

1. Establish a U.S.-Mongolian joint venture to develop Mongolia’s rare earth deposits;

2. The U.S. Development Finance Corporation (DfC), in collaboration with France, South Korea, and other nations possessing relevant capabilities, should provide financing for Mongolia’s rare earth refining capacity;

3. DfC should provide partial financing for Mongolia’s nuclear power plants to address long-term funding and electricity supply issues in Ulaanbaatar, thereby reducing Mongolia’s reliance on Russia and China for energy;

4. DfC should finance exports of American-made agricultural machinery to Mongolia, as U.S. farm equipment is top-tier in the Mongolian market and in high demand. Further sales would enhance Mongolia’s food security while supporting America’s production-oriented economy;

5. The U.S. Department of State should authorize the establishment of resident farmer and resident rancher positions at the U.S. Embassy in Ulaanbaatar, enabling expert technical advisory services for Mongolia’s agricultural sector and leveraging the shared equestrian cultural traditions between the two countries.

To promote cooperation and ensure its sustainability and effectiveness, Mongolia must safeguard the rights of U.S. investors and avoid arbitrary regulatory actions. Moreover, given the clear support from the U.S. government, utilizing DfC financing will help deter regulatory violations.

Source: The National Interest

Author: Edward Owen

Original: toutiao.com/article/1867941128020039/

Disclaimer: The views expressed in this article are those of the author alone.