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Blockchain tracking guarantees responsible battery procurement

“To actually deliver a fully transparent and validated supply chain, we need continuous, up-to-date, validated supplier data,” said Nicholas Garrett, CEO of RCS Global Group, in a statement. increase. “In our experience, most companies working together, especially in the automotive sector, want to consistently and regularly monitor supplier performance rather than relying on paper-based systems. . “

Blockchain allows automakers to step-by-step through where battery materials come from and whether those locations have been identified as ethically responsible. In the past, most automakers had to rely on less sophisticated systems that required time-consuming face-to-face audits.

The goal is to prevent human rights abuses that occur in places like the Democratic Republic of the Congo, a cobalt-rich country. Depends on child labor..

Ford recently completed a pilot showing how to track cobalt produced at the Huayang industrial mining site in Congo through the supply chain to LG Chem’s cathode and battery plant in South Korea, and then to the Ford plant in the United States.

“I think pilots have succeeded in demonstrating the benefits of technology that helps provide transparency across the global supply chain,” a Ford spokeswoman said in a statement. “The pilot tested a fictitious scenario rather than a production application. We believe that this technology has broad supply chain potential, so we are currently looking at a more comprehensive business case. “

Ford plans to build three battery factories in Tennessee and Kentucky. When these projects come online in the second half of 2010, the company said its role in blockchain networks will become even more important.

“By collaborating with other major industries on this network, our intention is to use state-of-the-art technology to ensure that the materials manufactured for our vehicles protect human rights and the environment. It’s about ensuring that it helps meet our commitment, “said a Ford spokesman. “We believe that the immutable nature of blockchain technology will help add more transparency to the rigorous supply chain tracking we already have.”

VW said in an email that it is continuing to test blockchain technology to increase supply chain transparency. In 2019, Volvo went beyond the pilot stage to become the first automaker to implement cobalt’s global traceability with this technology.

Investing in Circulor a year later, a spokesman said he aims to use this technology to track other sources as well.

“We are working on an ethical supply chain for raw materials, and our partnership with Circular has helped us in that regard,” said Martina Buchhauser, Chief Procurement Officer at Volvo Cars last year. .. “By supporting the continued development of Circulor, we can expand the use of blockchain technology in our operations and contribute to a more sustainable business.” Blockchain tracking guarantees responsible battery procurement

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