Mongolia’s defense sector has undergone significant diversification over the past decade, with Turkiye emerging as a primary partner in these industrial efforts. This shift was underscored in August 2026, when Mongolia announced the official opening of its first domestic ammunition factory, a project developed in collaboration with the Turkish state-owned firm, the Mechanical and Chemical Industry Corporation (MKE).
The facility, which is MKE’s second overseas production site following a similar project in Jordan, represents a milestone for Mongolia’s manufacturing capacity. According to Batlut Damba, Mongolia’s Minister of National Defense, the factory has already begun producing three distinct types of ammunition. Looking ahead, the government plans to further expand its domestic industrial base, with aspirations to establish a drone production facility.
The partnership between the two nations has deepened steadily since they established a strategic alliance in January 2025 during a state visit by Mongolian President Khurelsukh Ukhnaa to Ankara. Subsequent high-level engagements, including a visit to Ulaanbaatar by Turkish Minister of National Defense Yasar Guler in October 2025, have focused on enhancing military education, officer exchange programs, and technical assistance. Guler personally participated in the inauguration of the ammunition factory's production line during that visit.
This cooperation builds upon a long-standing defense relationship. Under a 1999 agreement, Ankara provides annual grants of $1 million to the Mongolian defense sector, and the two nations regularly engage in joint military training and exchange visits. Turkiye remains an active participant in the annual Khaan Quest military exercise hosted in Mongolia.
Beyond its ties with Turkiye, Mongolia is broadening its military cooperation with several "third neighbors," including India, Japan, and the United States. India, which established its first defense attaché in Ulaanbaatar in 2025, supports Mongolia’s cyber defense systems and participates in both Khaan Quest and the annual "Nomadic Elephant" joint training exercises. Meanwhile, a 2025 agreement between Japan and Mongolia allows for the transfer of non-lethal defense equipment, such as surveillance and radar systems, to bolster border security.
Despite these initiatives to modernize and diversify, Ulaanbaatar continues to maintain robust defense ties with its immediate neighbors. It conducts the annual "Selenge" military drills with Russia, focusing on tactical operations and counterterrorism, and holds the "Steppe Partners" exercises with China, which emphasize disaster relief and border security.
While Mongolia maintains a policy of avoiding formal military blocs or alliances, officials view these new defense partnerships as essential for addressing modern security challenges. As global military spending hit a record $2.9 trillion in 2025, Mongolia’s strategy aims to improve self-reliance and support broader economic diversification away from its traditional mining sector.
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The Mechanical and Chemical Industry Corporation, or MKE, a state-owned Turkish defense company, had signed a formal contract with Mongolia’s Defense Industrial Corporation in 2024 to establish a local ammunition production line in Mongolia. It’s MKE’s second overseas facility, following a production line in Jordan – a
