Volvo recently announced that it is investing in blockchain from Circulor. The two firms are already working together to track cobalt, which is used in electric car batteries, through a blockchain system. Most of the cobalt is mined in the Democratic Republic of the Congo, where up to 20% of the mineral comes from artisanal mines with dangerous working conditions, sometimes including child labor. Therefore, it is necessary to demonstrate that the mineral has ethical sources.
Funding is provided through the Cars Technical Fund, and other investors include SYSTEMIQ, Total Carbon Neutrality Volvo (part of the Total oil company) and Plug & Play. investment is in the millions. The car giant says the Circulor blockchain is already being used in the battery supply chain, and it will be 100% traceable to the cobalt used in the XC40 Recharge P8, Volvo’s first all-electric car.
Production will begin at the end of this year. It involves catl and LG Chem battery suppliers. Last November, joined the responsible sourcing blockchain network, of which LG Chem is also a member. However, decided to use the Volvo solution, which it has already deployed, for its CATL supply chain. The car firm is also exploring the possibility of working with Circulor in other areas, including for other minerals such as mica, and tracking traces of CO2, something that Circulor is already testing with Mercedes-Benz.
