A/S Pyatt: Thank you [inaudible] for that introduction, and let me start by saying what a tremendous honor it is to be here speaking right after Minister Ghani who has been such an important part of the US-UK alliance in working on the issues that you all are concerned with.

It’s especially good for me to be back here in London, in the UK, which is one of the United States’ closest and strongest partners internationally, not just on energy security and energy diplomacy that I’m responsible for, but also our shared vision of the challenges that lie ahead in the energy transition. Following the latest wave of Russian attacks on Ukraine’s energy infrastructure, I also want to acknowledge our alliance with the United Kingdom in support of Ukraine and thwarting Russia’s efforts to use [inaudible].

As both previous speakers have pointed out, this is coming just days ahead of COP28 in Dubai and could not be more timely. In this context I want to focus my remarks this morning on how our governments are working together to stimulate the more rapid investment in critical minerals and metals that we need for the clean energy transition.

We could not have done as much as we already have to advance this effort without the support and the leadership of the United Kingdom. Under the guidance of Minister Ghani the UK is one of the founding members of our Minerals Security Partnership which now includes 14 economies and more than half the global GDP.

From day one London has played a leading role in this partnership including [inaudible] principles as well as [potentially] hosting one of the MSP’s early projects.

The UK’s shared commitment to our goal of involving mineral-producing countries in MSP opportunities and ensuring the projects meet the highest international standards has helped us substantially to advance the initiative.

I also want to thank Minister Ghani once again for hosting the

third MSP Ministerial meeting this fall which showcased how far we have come in just a year or so since the MSP first came together. That event was the occasion for my boss, State Department Under Secretary Jose Fernandez, also to be here in London where I know he met with [inaudible].

As everyone in this room knows all too well, most of the world is playing catchup on the extraction, processing, and recycling of the minerals and metals that underpin clean energy technologies. Strong bilateral and multilateral partnerships as well as private sector investment will be essential to meet our energy transition goals.

The good news as we head into COP28 next week is that the energy transition is happening faster than expected. As [Inaudible] once noted in the press last August, the clean energy transition has become turbocharged. The bad news is that we still have notable choke points in the supply chains that are crucial to rapid decarbonization.

Let me throw a couple of numbers out. 64, 68, 72 and 79. Those are the IEA estimated percentages of clean technology supply chains in 2030 for wind turbine, batteries, refined cobalt, and solar PV — all coming from one country.

Another source, Benchmark, puts current natural graphite and synthetic graphite supply chains at 75 and 74 percent dominated by one country.

Altogether, 80 percent of our clean energy supply chains run through the Peoples Republic of China creating vulnerability to price shock and other disruptions that could hamper our progress towards the global energy transition.

But the Biden administration believes we can change these numbers, and I’m willing to guess that all of you are here because you believe so too.

Let me make one thing abundantly clear. The United States is not advocating for decoupling our economies from the PRC. We are emphasizing what we learned from the Russian example in Europe — you cannot overly on any one country as an energy supplier. [Inaudible] de-risking and for making sure that we don’t replace over-dependency on one country with over-dependency on another. During his address at Georgetown

University President Biden’s National Security Advisor Jake Sullivan described it succinctly. The United States is taking a small [inaudible] five minutes’ approach to critical technology. We must protect our strategic assets while not marginalizing important economic [inaudible].

In the critical minerals context this means diversifying our supply chains by making the best possible offer to mineral-producing countries and working within five environmental, social and government standards to incentivize new investment around the world.

That brings me back to the Minerals Security Partnership. One of the MSP’s main tenets is also what brings us here today. It’s not possible for the United States to meet our climate goals without the private sector. That’s why the State Department a few weeks ago announced a public/private partnership with a non-partisan energy security organization SAFE to form the Minerals Investment Network for Vital Energy Security in Transition — MINVEST. MINVEST builds on a strong record of collaboration between the State Department and SAFE, and exemplified by our successful series of workshops in the DRC and Zambia to assist those countries in developing their EV battery supply chains and manufacturing centers.

The MINVEST initiative is all about engaging private sectors globally to support energy supply chain diversification. MINVEST will directly support the United States’ critical minerals strategic goals including by advancing the Minerals Security Partnership and formalizing our engagement with the private sector. By doing so we’re aiming to send a strong signal to the market that there is a robust demand for critical minerals and [inaudible] ESGs to support the clean energy transition.

In the months ahead we will hold regular roundtables with the private sector in producing ventures, connect private investors with mining companies, facilitate larger mining companies partnering with junior miners, and [full] [inaudible] the private sector and Minerals Security Partnership partners to highlight investment opportunities.

We look forward to engaging with all of you on this effort, and we look forward to identifying complementary lines of effort with all of our European and Asian partners.

And just a last comment. My bureau in the State Department [inaudible] energy through climate dialogues with Indonesia, Japan, Canada, Norway and Australia in which critical minerals and their respective supply chains are [inaudible] ties and we intend to expand these dialogues in the months ahead.

Of course another important pillar of our energy diplomacy at COP and over the past year is the Inflation Reduction Act. At home the IRA has led to over $110 billion in new investment and the creation of over 170,000 new clean energy jobs. According to some estimates, over the next decade it could lead to as many as 1.5 million new jobs.

And I want to make clear that these benefits are not just limited to the United States. They’re [inaudible] economy and the huge [inaudible] of credit and tax breaks from the Inflation Reduction Act has been met with intense interest by our allies.

In coming years as a result of this legislation we can expect to see a massively accelerated deployment of new clean energy technologies and a resultant decline in the cost to consumers.

Key to our continued success, however, is something I’ve already touched on. We will not meet our Inflation Reduction Act goals without input and engagement from private sector partners.

And that, ladies and gentlemen, is why I’m here in London. The organizations represented in this room are critical to the success of our energy transition. Over the next two days I hope to speak with as many of you as possible about the work you’re doing now, how you’re doing it, and how we can most effectively advanced our shared goals.

So thank you for the invitation, and I very much look forward to the discussions.

U.S. Department of State

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