NEW DELHI (Reuters) – Indian Prime Minister Narendra Modi mentioned there’s a danger of a “new model of colonialism” if nations with crucial minerals don’t regard custodianship as a “global responsibility”, as corporations race to safe assets central to vitality transition objectives.

“We are experiencing this challenge for critical materials, rare earths and others. These things are abundant in some places and not present at all in others, but all of humankind needs them,” Modi mentioned at a Business 20 summit in New Delhi on Sunday.

“The ones who have them, if they don’t see that as a global responsibility, then this will promote a new model of colonialism. This is my warning,” Modi mentioned.

The feedback come as ample provides of minerals crucial for the transition to environmentally friendlier vitality is way from assured amid challenges equivalent to assets’ uneven geographical diversification.

China accounted for 70% of world mine manufacturing of uncommon earths in 2022 and is residence to not less than 85% of worldwide processing capability. This yr, it imposed export restrictions on gallium and germanium to be used in pc chips and different parts – a transfer extensively seen as retaliation for U.S. curbs on expertise gross sales to China and which raised considerations over extra restrictions.

Speaking to world enterprise executives and business heads, Modi mentioned India may construct an environment friendly and dependable provide chain, in distinction to the pre-COVID-19 provide chain that “broke down when the world needed it most”.

Amid broader efforts to diversify provide chains, the U.S. and India in June introduced offers in sectors as diversified as chips, minerals, expertise, house and defence throughout Modi’s go to to Washington.

(Reporting by Shivangi Acharya; Editing by Christopher Cushing)