Volvo Cars will work with its two global battery suppliers, CATL of China and LG Chem of South Korea, and blockchain technology firms to trace its cobalt production. The data in the blockchain will include the cobalt's origin, attributes like weight and size, as well as the chain of custody.
"We have always been committed to an ethical supply chain for our raw materials," Volvo Car's Head of Procurement Martina Buchhauser said in a statement. "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."
Volvo Car says it will begin using the blockchain traceability system this year. The companies involved have agreed to use the system to cover the supply of batteries over the next decade, for next generation Volvo and Polestar models, including the XC40 Recharge. Volvo Cars expects half of its global sales to be fully electric cars by 2025, and the company has pledged to reduce its carbon emissions by 40 percent per vehicle by the same year. Those goals will require more batteries and more ethically-sourced cobalt.