I have a new problem - too many mods and not enough space (fully expanded storage). In a certain area of the map that I'm now exploring, I suddenly seem to be getting better mods so I'm just dropping green ones on the floor to make space.
It is a crazy section of the map - corrupted rock breakers, twin thunder jaws, stormbirds. I was almost relaxing while hoovering up collectibles but this woke me up.
Once you hit the high value machine areas I found it was best to simply sell most stuff on a regular basis - even purple mods. I'd just keep bare minimum of materials/mods, etc. in inventory as you quickly stock up as you go from that point on (well unless you actively avoid combat I guess).