Volvo plans to adopt blockchain to track the genesis of cobalt it uses in its batteries to bypass stocks dug by children and under immoral circumstances.
Head of Procurement at the corporation Martina Buchhauser told that they're regularly bound to a civilised supply chain for their raw materials and using the blockchain is going to let them take the next action towards supporting complete tracking process of their stock purchases and decreasing any linked risks in tight cooperation with their suppliers.
Cobalt is one of the necessary components in lithium-ion batteries and is chiefly dug in Congo. The country contributed over two-thirds of the world’s supplies last year.
According to the information provided by Darton Commodities, the largest share of cobalt is extracted by large industrial firms, and approximately 17% of the commodity is elevated by hundreds of miners by hand that are working in the southeastern Katanga province before it is traded to intermediaries. Presently, it is very tricky to distinguish the way cobalt was extracted.
Chinese Zhejiang Gelly Holding Group owns this Swedish car-producing corporation. It produced its first completely electric XC40 Recharge vehicle last month. The corporation aims to make a modern version of a battery-electric per year until 2025, following other car-producing firms that are driving the technology to satisfy consumer needs and maintain working with stretching emission controls. Volvo purchases batteries from two companies: LG Chem and CATL. The corporation mentioned that it had already made a contract with these suppliers to start cobalt tracking from this year.
The firm also announced that the arrangements between Volvo and its suppliers include the number of batteries over the following ten years for Volvo models and electric cars (recall: electric automobiles are constructed by Volvo’s 50%-owned Polestar brand). The blockchain over Chinese CATL is going to be managed by Circulor and Oracle corporation, and for analysing the supply chain of South Korean LG Chem, the carmaker has joined Ford Motor company-backed initiative.