Volvo Cars has announced it will 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.
Volvo Cars has reached an agreement with its two global battery suppliers, CATL of China and LG Chem of South Korea, and leading global blockchain technology firms.
Traceability of raw materials used in the production of lithium-ion batteries, such as cobalt, is one of the main sustainability challenges faced by car makers.
Martina Buchhauser, Head of Procurement at Volvo Cars, says: “We have always been committed to an ethical supply chain for our raw materials. With blockchain technology, we can take the next step towards ensuring full traceability of our supply chain and minimising any related risks, in close collaboration with our suppliers.”
Blockchain technology significantly boosts transparency of the raw material supply chain because the information about the material’s origin cannot be changed undetected.
Volvo Cars says the agreements with CATL and LG Chem cover the supply of batteries over the coming decade for next-generation Volvo and Polestar models, including the XC40 Recharge.