Mongolia’s Fluorspar Is Flowing East. Europe Should Wake Up.
Mongolia has quietly become one of the world’s pivotal suppliers of fluorspar, the mineral feedstock for hydrofluoric acid used across batteries, semiconductors, aluminium and steel. Yet almost all of Mongolia’s tonnage still travels east to China and north to Russia. For an EU that has declared fluorspar “critical” and is scrambling to de-risk materials supply chains, this is a blind spot hiding in plain sight. A critical mineral hiding in everyday tech Fluorspar, sold as acid-grade (>97% CaF₂) and metallurgical-grade, is the starting point for hydrofluoric acid, the precursor to most fluorine-containing chemicals. Those chemicals underpin everything from chip etching and refrigerants to aluminium smelting (via aluminium fluoride) and the electrolytes that make lithium-ion batteries work. In Europe, acid-grade fluorspar feeds domestic HF plants and aluminium fluoride producers; EU demand is measured in the hundreds of thousands of tonnes per year. Mongolia’s surge – and where it goes Global fluorspar output hovered around 9.5 million tonnes in 2024; the US Geological Survey noted that 2023’s increase was driven primarily by Mongolia ramping up production. But the trade routes are lopsided: in 2021, fully 88% of Mongolian fluorspar exports went to China (58%) and Russia (30%), with only small volumes reaching other markets. In 2024, fluorspar (≤97% CaF₂, HS 252921) ranked among Mongolia’s top merchandise exports by value, at roughly USD 287 million – evidence of a growing, commercialised supply base. Europe remains a price-taker Despite Spain’s Minersa operating Europe’s largest fluorspar mine, the EU as a whole is structurally short: there are no EU member states that are net exporters of fluorspar, and the bloc is the world’s largest importer, drawing much of its supply from Mexico, South Africa, China and Vietnam. That leaves European HF and aluminium-fluoride producers exposed to external price swings and export policies – some of which have tightened in recent years. Brussels has a plan – just not yet for fluorspar The Critical Raw Materials Act (CRMA) sets targets to mine 10%, process 40% and recycle 25% of the EU’s needs domestically by 2030. Recent batches of CRMA “strategic projects” have prioritised battery metals and rare-earths across and beyond the EU. Sensible – but they don’t resolve Europe’s near-term dependency on imported acidspar and metspar. Fluorspar is on the EU’s 2023 critical list; giving it project-level attention is the logical next step. Why Mongolia matters to Europe Mongolia’s supply is real, large, and getting more investable: The strategic risk of doing nothing Europe’s HF chain, and by extension its semiconductor chemicals, refrigerants, EV electrolyte salts and aluminium smelting, cannot function without reliable acidspar. With Chinese and Russian import channels absorbing most Mongolian tons, Europe is left competing in a thinner pool fed by Mexico, South Africa and Asia. In any future trade friction or export curbs, price spikes and allocation risk would again cascade through EU industry, just as they did with other materials in recent years. The bottom line Fluorspar sits at the base of value chains Europe says it cannot afford to lose. The EU already imports the majority of what it uses, and Mongolia is one of the few places ramping up supply, just not for Europe. With the CRMA machinery now in motion, there is a narrow window to diversify and de-risk. If Brussels is serious about strategic autonomy, fluorspar needs to move from a line on a critical list to a funded, contracted, westbound reality. Sources: European Commission, “Critical raw materials” (2023 list: includes fluorspar). USGS, Mineral Commodity Summaries: Fluorspar (2024/2025). WTO Tariff & Trade Data (Mongolia export composition; HS 252921 value, 2024). U.S. Department of Labor, Supply Chain Study on Child Labor in the Fluorspar Industry in Mongolia (2024). European Environment Agency/ETC report on fluoropolymers (acid-grade fluorspar → HF). Reuters, EU CRMA strategic projects and 2030 targets. MONTSAME, “Mining Sector Requests Extension on New Royalty Calculation Method” (Aug 29, 2025). Erdenes Critical Minerals (ex-Mongolrostsvetmet): mines, grades, Bor-Undur processing. LIFE Programme project note: EU demand (~755 kt/yr) and importer status.
Mongolia’s Exchange-Linked Royalties: What Buyers Should Expect
Montsame reports that Mongolia has shifted its Mineral Resource Royalty (MRRL) calculation to use trading prices from the Mining Commodity Exchange or the Mongolian Stock Exchange, replacing international reference prices. The change aims to align royalties with actual realised prices after miners argued prior assessments were on average 22.6% above market for products such as enriched coking coal, fluorspar 54.3% and iron ore. The policy applies through year-end; companies selling at least 25% on the exchange must value all output at MSE prices. Officials project about MNT 100 billion in additional budget revenue, while the industry has asked for more time and flagged risks of double MRRL collection. QARAS Insights: From our Ulaanbaatar position, we see this as a transparency step that will influence term-sheet design for fluorspar buyers. Exchange-linked royalty bases mean fewer disputes over “reference vs realised” pricing on CaF2 cargos, but transition volatility is likely while methodologies and exchange liquidity settle. We are advising counterparties to: link royalty pass-throughs to MSE settlement prints; include price-adjustment language for assays and moisture so declared value and customs value reconcile cleanly; stipulate evidence of MRRL payment receipts in the shipping docs pack; and add a specific clause guarding against double MRRL in multi-party chains. Operationally, the 25% on-exchange threshold may nudge sellers toward periodic auctions, which affects shipment pacing and indexation windows. For fluorspar, this could tighten alignment between the domestic declared value and the FOB basis, improving bankability of LCs and reducing valuation haircuts. We handle mine-gate sampling and third-party verification, align USD/MNT conversions with exchange timestamps, and coordinate rail and road routes to Chinese borders or alternative EU-bound corridors, keeping compliance central to every step. Our role remains the same: direct access to mine owners, transparent testing and logistics, and structuring that turns Mongolia’s policy changes into predictable, compliant procurement for global buyers. – Original Article: https://montsame.mn/en/read/376915
Mongolia’s Fluorspar & Copper Attract Western Partnerships
Benchmark Minerals noted rising Western interest in Mongolia’s fluorspar and copper amid efforts to diversify supply chains beyond China. These minerals, vital for electronics, renewables, and steel, are increasingly viewed through a strategic lens. QARAS Insights: From our Ulaanbaatar base, we assist international partners in securing quality fluorspar volumes with transparent, compliant structures. We facilitate direct access to mine owners, manage testing andlogistics, and elevate Mongolia as a credible, stable alternative in global supply chains. Our role: turning Mongolia’s potential into reliable procurement for global markets. Original Article: https://source.benchmarkminerals.com/article/mongolias-fluorspar-copper-draws-western-partnerships