The coal and coal-bearing measures in the Jungar Coalfield in Inner Mongolia are characterized by rare earth element (REE) enrichment. Combustion in coal-fired power plants can lead to further enrichment of REEs in coal ash, which serves as a new potential source for REE extraction and smelting. Further, investigating the content, modes of occurrence, and transformation behavior of REEs during coal combustion may help in better understanding REE differentiation during coal combustion and facilitate the development of economically feasible REE recovery technologies. Therefore, in this study, we analyzed coal ash from the Jungar Energy Gangue Power Plant in Inner Mongolia via inductively coupled plasma mass spectrometry, X-ray diffraction, and scanning electron microscopy combined with energy-dispersive spectroscopy. Our results showed that the REE content of the feed coal was 220 μg/g, slightly higher than the average for global coal. Additionally, fly ash had a higher REE content (898 μg/g) than bottom ash, and its rare earth oxide content was approximately 1152 μg/g, which meets the industrial requirements. Bottom and fly ashes contained similar minerals; however, their relative abundances were different. Specifically, mullite, quartz, calcite, and gypsum were slightly more abundant in fly ash than in bottom ash, whereas amorphous solids were slightly more abundant in bottom ash than in fly ash. Furthermore, fly ash, dominated by Si- and Al-rich minerals, was composed of irregular particles of different shapes and sizes. It also contained monazite and REE fluoro-oxides, which possibly originated from the feed coal and had mineral structures that remained unchanged during coal combustion. Thus, the REE fluoro-oxides possibly resulted from the conversion of bastnaesite in the feed coal during combustion and thereafter became attached to the edge of the Si–Al minerals in the fly ash.