Asia Defense | Security | East Asia

How Mongolia Is Diversifying Its Defense Sector

As highlighted by a new ammunition factory, Turkiye has become a prime partner in Mongolia’s defense industry efforts.

This year, Turkiye and Mongolia launched the country’s first ammunition factory, marking an elevation in bilateral relations but also jumpstarting Mongolia’s defense manufacturing capabilities. It’s part of a larger trend: in the last decade, Mongolia’s defense sector has diversified immensely.

Mongolia and Turkiye established a strategic partnership in January 2025 during Mongolian President Khurelsukh Ukhnaa’s state visit to Ankara. That was followed by several high-level visits by Turkish officials. 

In October 2025, Turkish Minister of National Defense Yasar Guler paid an official visit to Ulaanbaatar at the invitation of his Mongolian counterpart, Batlut Damba. The two sides discussed opportunities to deepen cooperation in military education, training, and officer exchange programs. During the same visit, Guler also participated in the inauguration of the new ammunition factory’s production line.

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 – and perhaps, more importantly, Mongolia’s first domestic ammunition factory.

In August 2026, Mongolia announced that the MKE factory had officially begun production. In an interview, Batlut stated that Mongolia has now produced three types of ammunition. The government isn’t done yet; it is now looking to establish a drone factory as well. 

Turkiye has long been a reliable defense partner for Mongolia. Under a 1999 agreement, Ankara provides annual grants of $1 million to Mongolia’s defense sector. The two countries regularly exchange visits and hold training of military personnel. Turkiye is also an active participant in the Khaan Quest international military exercise, which is held annually in Mongolia. As seen by the new ammunition factory, they are expanding cooperation in the defense industry, including technical assistance. 

Turkiye is not the only country improving defense relations with Mongolia, either. In the last several years, Mongolia has also expanded defense and military cooperation with “third neighbors” such as Japan, India, and the United States. 

The United States has not only participated in but sponsored the Khaan Quest exercises since 2003. Cooperation is........

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