NEW DELHI, Aug 27 (Reuters) - Indian Prime Minister Narendra Modi said there is a risk of a "new model of colonialism" if nations with critical minerals do not regard custodianship as a "global responsibility", as firms race to secure resources central to energy transition goals.
"The ones who have them, if they don't see that as a global responsibility, then this will promote a new model of colonialism.
The comments come as adequate supplies of minerals critical for the transition to environmentally friendlier energy is far from assured amid challenges such as resources' uneven geographical diversification.
China accounted for 70% of world mine production of rare earths in 2022 and is home to at least 85% of global processing capacity.
Amid broader efforts to diversify supply chains, the U.S. and India in June announced deals in sectors as varied as chips, minerals, technology, space and defence during Modi's visit to Washington.
Persons:
Narendra Modi, Modi, Shivangi Acharya, Christopher Cushing
Organizations:
Indian, Thomson
Locations:
DELHI, New Delhi, China, India, U.S, Washington