Volvo Cars To Use Cobalt Recorded On Blockchain In Its Electric Car Batteries

On November 6, Volvo announced that it will use cobalt recorded on a blockchain for its car batteries after the revealing of its fully electric XC40 Recharge model last month.

Volvo has reached an agreement with its two battery suppliers, namely China-based CATL and South Korea-based LG Chem

However, Volvo explains: 

“Blockchain technology, which establishes a transparent and reliable shared data network, significantly boosts transparency of the raw material supply chain as the information about the material’s origin cannot be changed undetected.”

As part of the deal, the two suppliers will cover Volvo’s battery which needs for the production of new Volvo and Polestar models over the next decade and record the required raw materials using blockchain technology.

Proud to be establishing a new benchmark for responsible sourcing — Circulor (@Circulor1) November 6, 2019

With the initiative, Volvo is trying to prove that the materials used in the batteries of its electric vehicles are extracted without taking advantage of child labor and come from conflict-free zones.

Martina Buchhauser, Head of procurement of Volvo Cars, explained:

“With blockchain technology we can take the next step towards ensuring full traceability of our supply chain and minimizing any related risks, in close collaboration with our suppliers.” Martina Buchhauser

Likewise, the given system has been already tested by Circulor, a blockchain firm and Oracle, a software giant on CATL’s supply chain in August 2019.

Volvo Cars to trace battery cobalt using blockchain technology | Article [AMP] | Reuters — Circulor (@Circulor1) November 6, 2019

On the other hand, LG Chem’s supply chain is recorded by the Responsible Sourcing Blockchain Network, alongside R3, the enterprise blockchain firm and IBM, the technology giant.

Similarly, the data stored on-chain includes the cobalt’s origin, size, weight, chain of custody and information concerning whether the organizations involved respected the guidelines wrote by the Organization for Economic Cooperation and Development.

Thus, the news comes as blockchain technology is being increasingly adopted in global supply chain traceability.

Source: |

#CryptoNewsPoint #VolvoCars #Volvo #DigitalNotice #blockchain #ElectricCarBatteries