Indian Prime Minister Narendra Modi believes there is a danger of a new form of colonialism if countries that possess important minerals do not view ownership of those minerals as a global responsibility. That’s according to Reuters. Companies are increasingly relying on the extraction of these materials to achieve energy transition goals.
“Currently there is talk of competition for vital materials and scarce resources,” Modi said today at the Business 20 summit in New Delhi. “These materials are scarce in certain places than in others, but in principle all mankind needs them.”
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And Modi believes that if the countries that possess these materials do not see that their control is a global responsibility, then this increases the risk of the emergence of a new form of colonialism. “That is my warning about that.”
He makes these statements at a time when the stable flow of minerals, which is important for energy transmission, is far from assured. This has to do with the disproportionate distribution of raw materials in the world. For example, China will be responsible for 70% of the extraction of rare earth materials in 2022, and 85% of the processing capacity will be located there.
But this year, China restricted the export of materials such as gallium and germanium, which are important for computer chips and other components. The move is seen by many as retaliation for US restrictions on exporting technology to China. More restrictions are likely to be imposed in the near future.
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India also wants to contribute to the global supply chain, Modi said, noting that a stable chain can be built from India, which contrasts with the pre-COVID-19 supply chain that collapsed “when the world needed it most”. India wants to achieve this by striking deals with the United States in raw materials, technology, space and defense, among other things.
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