Automotive company Volvo is using blockchain technology to improve the quality of its supply chain for cobalt. This way the car company wants to make sure that it's cobalt supply from the Democratic Republic of Congo is not stained with child labor or blood money. Volvo is building electric cars and wants its production to be as ethical as possible.
Volvo has already been testing to track materials in its supply chain. The company announced on Monday that it has produced its first vehicles with recycled and ethically obtained cobalt and other resources.
For now the supply chain solution is only implemented in China. Volvo's Chinese division tracked cobalt from a Chinese recycling plant to Volvo Cars Zhejiang over a two-month period to June 27. The supply chain solution will now be implemented across the entire company in collaboration Oracle and British blockchain startup Circulor.
Volvo is not the first automotive company to embrace blockchain, nor is it the first company to add blockchain-functionalities to its supply chain. Hyundai, General Motors and BMW are among the many car companies adding blockchain and cryptocurrency functionalities to its production cycle and consumer services. While many business-to-consumer companies are putting their supply chain on the blockchain to be more open about their production. This way consumers know where their wine comes from, for example.
