Increasing demand for renewable energy, electric vehicles, and battery storage technologies will create unprecedented demand for energy resource minerals. Energy Resource Governance Initiative (ERGI) is a U.S. Department of State, Bureau of Energy Resources (ENR)-led effort designed to promote sound mining sector governance and resilient energy mineral supply chains. Through this initiative, ENR will engage countries to advance governance principles, share best practices, and encourage a level playing field. ERGI will also promote resilient and secure energy resource mineral supply chains.
ERGI will focus on three strategic objectives:
1. Engage resource-rich countries on responsible energy minerals governance. Demand for critical energy minerals could increase almost 1000 percent by 2050, straining the capacity of many countries to increase supply. ERGI will:
- Share best practices on minerals management and governance to foster open and transparent markets.
- Support investment frameworks that attract top tier private investment committed to advanced extractive practices and clear operating procedures.
- Promote responsible and sustainable mining practices.
2. Support resilient supply chains. Over 80 percent of the global supply chain of rare earth elements, important minerals for electric vehicles and wind turbine components, is controlled by one country. Other minerals have similar supply constraints. Reliance on any one source increases the risk of supply disruptions. ERGI will:
- Identify options to diversify supply chains.
- Facilitate trade and industry connections.
- Promote integrated and resilient supply chains.
3. Meet the expected demand for clean energy technologies. Global investment in mineral-intensive renewable power generation and battery storage technologies continues to outpace investment in fossil fuel power generation by over 100 percent annually. ERGI will:
- Encourage development finance and export credit institutions to support responsible and sustainable mining projects.
- Facilitate modern resource surveys to understand energy mineral prospects.
- Emphasize the connection between renewable energy demand and the potentially adverse impact on mineral-rich countries.
For further information, please contact Matthew McManus, Acting Spokesperson for the Bureau of Energy Resources, at McManusMT@state.gov or visit https://www.state.gov/bureaus-offices/under-secretary-for-economic-growth-energy-and-the-environment/bureau-of-energy-resources/. Additional information is available on Twitter at @EnergyAtState.