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In Blade Runner 2049, Niander Wallace’s desire for the replicant child is driven by a combination of megalomania, corporate necessity, and his vision for the future of human expansion.
Here are the specific details regarding his motivations:
Wallace views himself as a savior of humanity (having already saved the world from famine with his synthetic crops). He believes that for humanity to truly "own the stars" and conquer the nine off-world colonies and beyond, they require a massive, disposable labor force.
Currently, his production capacity is limited. He can only manufacture replicants as fast as his factories can build them. He explicitly states that his "yield" is too low. If replicants could breed biologically, they would multiply exponentially on their own, providing the "infinite" workforce required for interstellar colonization. He views reproduction as the key to scaling his empire.
Wallace is obsessed with his predecessor, Eldon Tyrell. He views Tyrell as a genius who achieved a "miracle" that he himself cannot replicate. In the film, Wallace examines the remains of Rachel (the replicant from the original film) and expresses frustration that Tyrell took the secret of replicant procreation to his grave.
Wallace views himself as a god, but a "flawed" one because his creations are sterile. To him, the child is the "key" to the lock. By capturing and dissecting the child (or studying its genetic makeup), he hopes to "crack the code" of biological reproduction and incorporate it into his own Nexus-9 models.
Wallace believes that every great civilization in history was built on the backs of a disposable labor force. He views the prohibition of replicant procreation (and the "blackout" that followed) as a setback for human progress. In his mind, a self-replicating slave race is the only way to ensure the survival and dominance of the human species (led by him) across the galaxy.
Early in the film, there is a scene where Wallace assists in the "birth" of a new female replicant from a plastic sac. He immediately checks her for reproductive viability and, finding her sterile, kills her in a fit of cold disappointment. This scene illustrates his desperation; he has reached a wall in his bio-engineering capabilities. The child born of Rachel and Deckard is proof that the wall can be broken, making the child the most valuable "biological specimen" in existence.
Wallace doesn't want the child to "raise" it or treat it as a person; he wants the child as proprietary technology. He intends to harvest the child's genetic information to engineer a new generation of replicants that can give birth, thereby automating his manufacturing process and allowing him to populate the universe with his "angels."
No oversights detected.
Niander Wallace wants the replicant child because it is the key to biological reproduction for replicants. His current manufacturing methods are too slow to produce the workforce needed to colonize the galaxy ('nine planets'). He views himself as a civilization-builder who must storm the stars with his 'angels,' but he is limited by his inability to make them self-replicating. He intends to study (and likely dissect) the child to unlock the secret Tyrell achieved, thereby allowing him to scale his production infinitely.