Skip to main content
Sister Publication Links
  • Automotive News
  • Automobilwoche
  • Automotive News Canada
  • Automotive News China
Subscribe
  • Subscribe
  • Newsletters
  • Login
  • HOME
    • Latest news
    • Automakers
    • Suppliers
    • New Product
    • Environment/Emissions
    • Sales By Market
    • On The Move
    • Auto Shows
    • Munich Auto Show
    • Geneva Auto Show
    • Paris Auto Show
    • Beijing Auto Show
    • Shanghai Auto Show
  • Features
    • Long Read
    • Interview of the Month
    • Focus on Electrification
    • Focus on Technology
    • Segment Analysis
    • Cars & Concepts
    • Supplier Spotlight
    • Europe By The Numbers
  • Opinion
    • Blogs
    • Commentary
    • Guest columnists
  • Photos
    • Photo Galleries
    • Geneva Photo Gallery
    • Beijing Photo Gallery
    • Frankfurt Photo Gallery
    • Paris Photo Gallery
    • Shanghai Photo Gallery
  • Podcasts
  • Car Cutaways
  • EVENTS
    • ANE Congress
    • ANE Rising Stars
    • ANE Eurostars
  • More
    • Publishing Partners
    • Social Media
    • Contact Us
    • Media Kit
    • About Us
    • Capgemini: Invent Head on automotive takeaways from CES 2023
    • Capgemini: Securing the industry's future through a radical rethink
    • Capgemini: Succeeding with the automated driving journey through AI
    • Capgemini: The circular economy is spurring new thinking on EV batteries
    • Capgemini: Toyota and Capgemini leaders on how OEMs can handle industry changes and succeed
    • HEXAGON: Plugging into data is the only way to make winning EVs
    • TUV Rheinland: Ideas, services and certifications for smart mobility
    • TUV Rheinland: Testing of automated and autonomous vehicles on test tracks
    • Toyota Europe
    • UFI Filters
    • Facebook
    • Instagram
    • LinkedIn
    • Twitter
MENU
Breadcrumb
  1. Home
  2. Suppliers
December 06, 2021 12:00 AM

Ford, VW, Volvo, Tesla turn to blockchain tracking to ensure responsible sourcing for EV batteries

Automakers use digital tech to understand where cobalt and other materials come from

Michael Martinez
  • Tweet
  • Share
  • Share
  • Email
  • More
    Print
    BLOCKCHAIN-MAIN_i.jpg
    BLOOMBERG

    Blockchain technology aims to help automakers be certain their battery materials are coming from ethically responsible locations.

    Automakers and suppliers say it's vital that the cobalt, lithium, copper and other materials used in electric vehicle batteries are sourced responsibly, and they are turning to blockchain technology to ensure that happens.

    Blockchain — a digital ledger that records transactions and stores the information across multiple computer networks — has been used in recent years to track everything from medical records to food supply data to cryptocurrency.

    The technology, experts say, can save automakers money by modernizing and streamlining key elements of their supply chain so they can easily tell whether human rights or environmental violations have occurred in the mines and refineries that produce the ingredients used to make EV batteries.

    Ford Motor, Volkswagen, LG Chem, Huayou Cobalt, IBM and RSC Global Group in 2019 founded the Responsible Sourcing Blockchain Network to do just that. Tesla in its 2020 impact report, revealed that it's using different blockchain solutions to trace its cobalt and nickel supplies. And Volvo Cars last year said it would invest in blockchain traceability firm Circulor.

    Source code

    The Responsible Sourcing Blockchain Network, formed in 2019, is 1 group working to apply blockchain technology to electric vehicle battery supply chains. The consortium, built on IBM technology and assured by RCS Global Group, includes these members:

    • Ford Motor Co.
    • Volkswagen Group
    • Volvo Cars
    • LG Chem
    • Huayou Cobalt

    "In order to really deliver fully transparent and verified supply chains, continual, up-to-date, and verified supplier data is needed," Nicholas Garrett, CEO of RCS Global Group, said in a statement. "In our experience, most of the companies we work with, not least in the auto sector, now want to visualise and monitor supplier performance on a consistent and regular basis rather than having to rely on paper-based systems."

    Using blockchain, automakers would be able to see a step-by-step account of where the materials for their batteries come from and whether those locations have been verified as ethically responsible. Previously, most automakers would have to rely on less advanced systems that require time-consuming in-person audits.

    The goal is to deter human rights abuses that happen in places such as the Democratic Republic of Congo, a cobalt-rich nation where mines have in some cases relied on child labor.

    Ford recently completed a pilot showing how cobalt produced at Huayou's industrial mine site in Congo could be traced through the supply chain to LG Chem's cathode and battery plant in South Korea, then to a Ford plant in the U.S.

    "We think the pilot was successful in terms of proving the merits of the technology helping provide transparency across our global supply chain," a Ford spokesman said in a statement. "The pilot tested hypothetical scenarios, not production applications. We believe the technology could have broad supply chain possibilities, which is why we are now studying the more comprehensive business case."

    Ford plans to build three battery plants in Tennessee and Kentucky. As those projects come online later in the decade, the company said its role in the blockchain network will become even more important.

    "By collaborating with other leading industries in this network, our intent is to use state-of-the-art technology to ensure materials produced for our vehicles will help meet our commitment to protecting human rights and the environment," the Ford spokesman said. "We believe the immutable nature of blockchain technology can help add even more transparency to the rigorous supply chain tracking we already have in place."

    VW, in an email, said it continues to test blockchain technology to gain more transparency in the supply chain. Volvo in 2019 went beyond the pilot stage and became the first automaker to implement global traceability of cobalt with the technology.

    It invested in Circulor a year later, and a spokesman said it aims to use the tech to trace other materials as well.

    "We are committed to an ethical supply chain for our raw materials, and our partnership with Circulor has been instrumental in that regard," Martina Buchhauser, Volvo Cars' chief procurement officer, said last year. "By supporting Circulor's ongoing development, we can expand the use of blockchain technology in our operations and contribute to a more sustainable business."

    FOCUS ON ELECTRIFICATION NEWSLETTER: A monthly wrap-up of the latest electric vehicle news, including interviews and global EV sales data, delivered to your inbox.
    RECOMMENDED FOR YOU
    Bosch earnings rose 16% in 2022; higher costs slow margin growth
    Recommended for You
    Bosch badge
    Bosch earnings rose 16% in 2022; higher costs slow margin growth
    Britishvolt jacket logo
    Insolvent Britishvolt receives two bids, report says
    391462266(1).gif
    CATL aims to raise $5B in Swiss listing to fund Europe expansion, report says
    Capgemini Invent Head on automotive takeaways from CES 2023
    Sponsored Content: Capgemini Invent Head on automotive takeaways from CES 2023
    Sign up for free newsletters
    EMAIL ADDRESS

    Please enter a valid email address.

    Please enter your email address.

    Please verify captcha.

    Please select at least one newsletter to subscribe.

    You can unsubscribe at any time through links in these emails. For more information, see our Privacy Policy.

    Get Free Newsletters

    Sign up and get the best of Automotive News Europe delivered straight to your email inbox, free of charge. Choose your news – we will deliver.

    You can unsubscribe at any time through links in these emails. For more information, see our Privacy Policy.

    SUBSCRIBE TODAY

    Get 24/7 access to in-depth, authoritative coverage of the auto industry from a global team of reporters and editors covering the news that’s vital to your business.

    SUBSCRIBE NOW
    Connect with Us
    • Twitter
    • Facebook
    • LinkedIn
    • Instagram

    Founded in 1996, Automotive News Europe is the preferred information source for decision-makers and opinion leaders operating in Europe.

    Contact Us

    1155 Gratiot Avenue
    Detroit MI  48207-2997
    Tel: +1 877-812-1584

    Email Us

    ISSN 2643-6590 (print)
    ISSN 2643-6604 (online)

     

    Resources
    • About us
    • Contact Us
    • Advertise with us
    • Advertise with Us
    • Ad Choices Ad Choices
    • Sitemap
    Awards
    • Rising Stars
    • Eurostars
    • Leading Women
    Legal
    • Terms and Conditions
    • Privacy Policy
    • Privacy Request
    Automotive News Europe
    Copyright © 1996-2023. Crain Communications, Inc. All Rights Reserved.
    • HOME
      • Latest news
      • Automakers
      • Suppliers
      • New Product
      • Environment/Emissions
      • Sales By Market
      • On The Move
      • Auto Shows
        • Munich Auto Show
        • Geneva Auto Show
        • Paris Auto Show
        • Beijing Auto Show
        • Shanghai Auto Show
    • Features
      • Long Read
      • Interview of the Month
      • Focus on Electrification
      • Focus on Technology
      • Segment Analysis
      • Cars & Concepts
      • Supplier Spotlight
      • Europe By The Numbers
    • Opinion
      • Blogs
      • Commentary
      • Guest columnists
    • Photos
      • Photo Galleries
      • Geneva Photo Gallery
      • Beijing Photo Gallery
      • Frankfurt Photo Gallery
      • Paris Photo Gallery
      • Shanghai Photo Gallery
    • Podcasts
    • Car Cutaways
    • EVENTS
      • ANE Congress
      • ANE Rising Stars
      • ANE Eurostars
    • More
      • Publishing Partners
        • Capgemini: Invent Head on automotive takeaways from CES 2023
        • Capgemini: Securing the industry's future through a radical rethink
        • Capgemini: Succeeding with the automated driving journey through AI
        • Capgemini: The circular economy is spurring new thinking on EV batteries
        • Capgemini: Toyota and Capgemini leaders on how OEMs can handle industry changes and succeed
        • HEXAGON: Plugging into data is the only way to make winning EVs
        • TUV Rheinland: Ideas, services and certifications for smart mobility
        • TUV Rheinland: Testing of automated and autonomous vehicles on test tracks
        • Toyota Europe
        • UFI Filters
      • Social Media
        • Facebook
        • Instagram
        • LinkedIn
        • Twitter
      • Contact Us
      • Media Kit
      • About Us