At the invitation of President of Mongolia U.Khurelsukh, President of the Republic of Korea Lee Jae Myung paid a state visit to Mongolia from 9 to 11 July 2026. One of the central issues discussed during the visit was cooperation in critical minerals.

While the Republic of Korea has supported the establishment of a joint research centre by providing laboratory facilities, equipment and technological assistance, Mongolia has the potential to contribute to the diversification of Korea’s critical mineral supply sources. In recognition of this opportunity, the two sides have reached an agreement to eliminate import tariffs imposed by Korea on certain Mongolian products containing rare earth elements, copper and molybdenum.

• Trade in mineral resources between the 2 countries has a relatively long history. Mongolia has exported critical minerals to South Korea for more than a decade. In 2025, it supplied more than 750 tonnes of products, primarily molybdenum and tungsten. Although the volume remains modest, this record demonstrates that Mongolia has both experience in exporting these minerals and an established route to market. The priority now is to identify substantive solutions that can expand this trade.

Internationally, critical minerals are increasingly recognised not only as inputs for mining and industrial production, but also as a potential source of income and improved livelihoods for millions of people. During a United Nations discussion held in New York on 22 July, World Trade Organization Director-General Ngozi Okonjo-Iweala described critical minerals as an opportunity to improve the lives of millions.

The discussion also addressed Africa’s mining potential and the troubling role mineral resources have played in financing armed conflicts in countries such as the Democratic Republic of the Congo and Sudan. These examples demonstrate that while critical minerals can create wealth, they can also become a source of conflict in the absence of sound governance. For peaceful countries such as Mongolia, however, responsible development, transparency and strong governance could provide an opportunity to attract international attention and build long-term partnerships.

South Korea is one of the world’s leading producers of semiconductors, electric vehicle batteries, advanced displays and magnets, as well as defence and aerospace equipment and technologies. Shortly before his visit to Mongolia, President Lee Jae Myung attended a NATO summit in Ankara, Türkiye, for the first time since taking office.

During the summit, President Lee called for the defence partnership between South Korea and NATO to be taken to the next level. This comes as NATO member states agreed in April to expand their defence capabilities through 2035. Such commitments are expected to increase defence spending and procurement.

One example was Canada’s decision on 6 July to select Germany’s TKMS as the preferred supplier in a tender for 12 submarines. For South Korea, which is among the leading producers in this field, the decision represented a major lost opportunity. Nevertheless, President Lee did not return from the NATO summit empty-handed, having agreed with NATO Secretary General Mark Rutte to begin discussions on defence procurement.

Demand for critical minerals in South Korea is therefore likely to continue rising. Rare earth elements such as neodymium and yttrium are used in high-performance magnets, motors, lasers and control systems, while tungsten is a key raw material in armour-piercing ammunition and heavy weapons manufacturing.

Depending on the mineral, South Korea currently imports between 15 and 95 per cent of its critical mineral requirements from China. Korean policymakers view Mongolia as one of the closest potential suppliers that could help reduce this dependence. In this context, the two countries reached an agreement in principle during the Ulaanbaatar visit on negotiations for a Comprehensive Economic Partnership Agreement. Under the arrangement, tariffs of between 2 and 5 per cent on certain minerals imported from Mongolia are expected to be eliminated.

South Korea is one of more than ten countries that have formally adopted a national list of critical minerals. It initially identified 33 raw materials in 2023 and expanded the list last year by adding yttrium, scandium, ruthenium, rhodium and iridium. These minerals are essential to the manufacture of advanced technologies.

Of the 38 raw materials on the list, South Korea classifies lithium, nickel, cobalt, manganese, graphite, neodymium, dysprosium, terbium, cerium and lanthanum as strategic minerals. Despite their strategic importance, the country imports almost all of them, with the exception of a limited amount of domestically produced graphite. Overall, South Korea meets only around five per cent of its critical mineral demand through domestic production.

To reduce this high level of dependence, Seoul is pursuing a more flexible relationship with Beijing, its principal supplier of critical minerals, while also strengthening ties with resource-rich countries. Last year, South Korea expressed its intention to support the development of Vietnam’s rare earth sector by sharing advanced processing technologies.

Vietnam holds the world’s sixth-largest rare earth reserves but has historically produced only limited quantities due to underdeveloped processing infrastructure and legal and regulatory challenges. Earlier this year, however, Vietnam amended its Law on Geology and Minerals to classify rare earth elements as national resources of exceptional strategic importance and prohibited the export of unprocessed rare metals.

Vietnam has consequently signalled its intention to introduce advanced technologies from South Korea, Japan and Western countries to process rare earth elements and other rare metals domestically, while maintaining a certain level of engagement with China, the global leader in this field.

During the South Korean President’s visit, Mongolian National Rare Earth Corporation, the developer of the Khalzan Buregtei rare earth project, which is expected to commence in the near future, agreed to conduct joint research with the Korea Basic Science Institute. The research will focus on determining the detailed composition and characteristics of the ore deposit. This cooperation could create an opportunity for tangible progress in Mongolia’s critical minerals sector.

Despite the recent positive developments, reliable quantitative data on Mongolia’s critical minerals remains limited. Relevant domestic institutions report that Mongolia has 3.1 million tonnes of confirmed rare earth reserves. Were this figure calculated according to internationally recognised classification standards, Mongolia would possess reserves of global significance, ranking behind only Vietnam.

However, international organisations do not include Mongolia in their statistical reporting. The United States Geological Survey, for example, updates its figures annually but does not list Mongolia among countries with reported rare earth reserves. Compared with 2024, the agency reduced its estimate of Russia’s reserves from 10 million tonnes to 3.8 million tonnes and Vietnam’s reserves from 22 million tonnes to 3.5 million tonnes. In contrast, it increased South Africa’s estimated reserves from 790,000 tonnes to 860,000 tonnes.

This highlights the need for Mongolia to assess and report its rare earth resources, as well as its other critical mineral reserves, using internationally recognised standards and classifications.

In summary, Mongolia has reached the threshold of the global critical minerals network, yet it continues to struggle to move beyond the starting line. The country can cross this threshold only if it succeeds in transforming its emerging cooperation with South Korea into internationally compliant research, verified reserves, processing technology and sustainable exports.

South Korea will not be the only country interested in Mongolia’s critical minerals. Whether Mongolia can earn the confidence of future partners and turn cooperation into tangible outcomes will depend directly on how effectively it uses this first opportunity.

This issue should therefore be addressed not only at the policy level, but also through broader discussion involving stakeholders from across the sector. In this context, MiningWeek & MinePro 2026, scheduled to take place from 16 to 18 September 2026, is one of the platforms that could facilitate discussion on critical mineral research, processing technologies, investment and international partnerships, while helping connect policy objectives with practical projects and cooperation.