German Automaker, Volkswagen group announces that it will use blockchain to track its mineral supply chains. As per a report on Thursday, the company joins open industry collaboration. It will also include Ford as one of the members.
The automaker makes a move to source its minerals like cobalt responsibly. As a matter of fact, car companies use cobalt in lithium-ion batteries for electric vehicles.
Presently, consumer brands and miners rely on third-party audits. In addition to it, they also rely on laborious manual processes. It is to comply with industry standards which people accept. To source minerals, companies use these processes.
Similarly, with the use of blockchain technology, it is easier to track supply chains. It will also help industries to meet responsible sourcing. The Organization for Economic Cooperation and Development or OECD sets some standards that companies must follow. They also have to provide a record of mineral movements. It is to aid the process of compliance with permanent records.
IBM’s Hyper Ledger fabric to develop Volkswagen’s blockchain
Volkswagen, therefore, is going to use a new platform that has permission from authorities. Reportedly, the group on IBM Blockchain develops the platform. They will build it using Hyper-ledger Fabric. This type of platform will be able to track minerals across global supply chains.
Earlier this year, the formation of the collaboration took place. It will include many members of the collaboration. For instance, companies like LG Chem, Huayou, and RCS are a part of the collaboration. Interestingly, LG Chem is a unit of South Korean conglomerate of LG Corp. And, RCS is a raw material auditing firm.
Similarly, Volkswagen announces the matter. According to the automaker, participants in the network can securely contribute data. They can also get access to immutable data with permission. Further, the participants can do these activities to keep a record of the flow of materials across their supply chain. Volkswagen says that RCS Global Group will validate compliance with responsible sourcing standards. The participants can be able to trace the supply chain in real time.
IBM reveals challenges in the production of cobalt
According to IBM’s recent blog, the Democratic Republic of the Congo has over 60% of global production of cobalt. Unfortunately, around 2 million miners deal with various challenges in this area. It also includes violations of human rights. Also, some cobalt mines force child labor to carry out work.
Furthermore, the German automaker says that it aims to expand the membership to various other industries. It will include industries, like aerospace, mining operations, and consumer electronics shortly.
Moreover, as per the press release of the company, Volkswagen has eyes on the provenance of minerals. It says the collaboration will allow the Volkswagen Group to have a broader view of the provenance of minerals.
However, with the collaboration’s aim to responsibly source cobalt, it has bracer significance. Cobalt integrates with a range of devices and has become a necessity. The devices, for instance, smartphones, cars, etc. use cobalt. It also features in a variety of other consumer products.