Volvo was the first to use Blockchain technology

Volvo was the first to use Blockchain technology

November 6, 2019 0 By autotimesnews

Volvo was the first car manufacturer to use cobalt supply chain tracking technology for its own battery packs.

According to the Swedish manufacturer, when it comes to sustainability, tracking the raw materials used to make lithium-ion batteries is a big problem. It is believed that the use of Blockchain technology significantly increases the transparency of the supply chain of raw materials, so information about the origin of the material cannot be changed unnoticed.

Volvo has reached an agreement with both global battery suppliers in China’s CATL and South Korean LG Chem to realize cobalt traceability from this year on.

    “We have always adhered to the ethical supply chain of our raw materials. Using blockchain technology, we can take the next step to fully monitor our supply chain and minimize any risks associated with it in close collaboration with our suppliers, ”said Volvo Executive Director Martina Buchhauser.

Blockchain is a digital ledger that contains a list of cryptographic records. From a supply chain perspective, this system creates transaction records that cannot be changed, so when it comes to the origin of cobalt, attributes such as weight and size, as well as the supply chain, can be verified in accordance with OECD supply chain guidelines . Volvo’s agreement with CATL and LG Chem will cover the entire battery supply over the next decade for the next-generation Volvo and Polestar models, including the recently introduced XC40 Recharge.