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VOLVO CARS TO IMPLEMENT BLOCKCHAIN TRACEABILITY OF COBALT USED IN ELECTRIC CAR BATTERIES
|Date: 06 Nov 2019
||Author Type: Press Release
|Author: Volvo South Africa
|Source: Volvo South Africa
Volvo Cars will
become the first carmaker to implement global traceability of cobalt used in
its batteries by applying blockchain technology. The announcement follows the
reveal last month of the company’s first fully electric car, the XC40 Recharge.
of raw materials used in the production of lithium-ion batteries, such as
cobalt, is one of the main sustainability challenges faced by carmakers. Volvo
Cars are committed to full traceability, ensuring that customers can drive
electrified Volvos knowing the material for the batteries has been sourced
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.
Cars have now reached an agreement with its two global battery suppliers, CATL
of China and LG Chem of South Korea, and leading global blockchain technology
firms to implement traceability of cobalt starting this year.
firms Circulor and Oracle operate the blockchain technology across CATL’s
supply chain following a successful pilot earlier this summer, while the
Responsible Sourcing Blockchain Network (RSBN), together with responsible
sourcing specialists RCS Global and IBM, is rolling out the technology in LG
Chem’s supply chain.
always been committed to an ethical supply chain for our raw materials,” said
Martina Buchhauser, head of procurement at Volvo Cars. “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
blockchain is a digital ledger containing a list of records linked to each
other via cryptography. Within supply chains, the technology creates records of
transactions which cannot be changed, while also enforcing a common set of
rules for what data can be recorded. This allows participants to verify and
audit transactions independently.
particular case, data in the blockchain include the cobalt’s origin, attributes
such as weight and size, the chain of custody and information establishing that
participants’ behavior is consistent with OECD supply chain guidelines*. This
approach helps create trust between participants along a supply chain.
Cars last month launched the XC40 Recharge, the first of an upcoming family of
fully electric cars under the Recharge banner. By 2025, it expects half of its
global sales to consist of fully electric cars, with the rest hybrids.
month, Volvo Cars also launched an ambitious climate plan, which includes a
radical reduction of carbon emissions by 40 percent per vehicle by 2025, as
well as a continued commitment to ethical business across its entire operations
and supply chain.
LG Chem are renowned battery manufacturers, both with long and successful track
records supplying lithium-ion batteries to the global automotive industry. They
fulfill Volvo Cars’ strict sourcing guidelines in terms of technology
leadership, responsible supply chains, reduction of carbon emissions and
competitive cost models.
agreements between Volvo Cars, CATL, and LG Chem cover the supply of batteries
over the coming decade for next-generation Volvo and Polestar models, including
the XC40 Recharge.