Volvo starts using Blockchain to Check Source of Cobalt for Its Electric Vehicle Production

Aug 05 2019

Automaker Volvo Cars, currently owned by the Chinese automotive group Geely, has developed electric cars with Cobalt mapped on the blockchain, Reuters shared on August 2. 
 
Volvo is going through a lot of production issues linked to the sourcing of its cobalt reserves. For users who don’t know about Cobalt, batteries used in the electric cars are made using Cobalt, a metal that is found in excess throughout Cargo. Also, it is expected that 2/3rd of the world’s cobalt supply is spread across the African nation.
 
But, due to the increasing demand of the above-mentioned metal these days, it seems that Congolese miners have decided to use Children for these digging activities. Due to this, a number of activist groups, both national and international, are starting to keep a lot of pressure on leading firms such as Volvo to shift their operations to other countries.
 
In response to the recent development, Volvo has launched a blockchain platform to map the entire life cycle of Cobalt. A London-based firm known as Circular builds the system, and it ensures to provide Volvo with a high degree of transparency and immutability.
 
Also, it mentions with enthusiasm that the new blockchain system has been built using one of the Oracle’s original blockchain designs.
 
Previously, Oracle has framed several blockchain projects for various clients present in different sectors such as healthcare, supply-chain management, mineral tracking, etc.
 
According to a report, Volvo has joined a project to track Cobalt from the Democratic Republic of Congo monitored by responsible sourcing group RCS Global. Information news outlet ITNEWS proposes that the main purpose of the move is to prove that electric vehicles don’t depend on conflict minerals or child labor.
 
Automaker Ford, technology firm IBM, South Korean cathode maker LG Chem, and Chinese Cobalt supplier Huayou has taken part in this initiative. 
 
One of the Volvo spokesperson stated, 

“It tracked cobalt from a Chinese recycling plant to Volvo Cars Zhejiang over a two-month period to June 27,” Volvo said, adding its aim was “full transparency and traceability.” 

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