On November 7th, foreign media reported that lithium batteries now need raw materials such as cobalt, which is notorious for using child labor in mining. Now, Volvo has released its first all-electric XC40 Recharge, but it wants to make sure its raw materials in its lithium batteries are reliable. To achieve this, Volvo will use blockchain technology.
Volvo Cars will work with two global battery suppliers, China’s Ningde Times (CATL) and South Korea’s LG Chem, as well as blockchain technology companies to track the production of cobalt used in its lithium-ion batteries. The data in the blockchain will include properties such as the origin, weight and size of cobalt, as well as information such as the chain of custody for production and marketing.
Martina Buchhauser, Volvo’s head of procurement, said: “It’s not a big deal. “We are committed to building an ethical supply chain of raw materials,” Buchhauser said in a statement. With blockchain technology, we can take the next step by working closely with our suppliers to ensure that our supply chain is fully traceable and minimizes any associated risks. “
Volvo Cars said it would start using blockchain traceability this year. Its battery suppliers have agreed to use the system to track batteries for next-generation Volvo and Polaris models, including the XC40 Recharge, over the next decade. The company expects half of its global car sales to be all-electric vehicles by 2025. The company also pledged to cut carbon emissions from each vehicle it produces by 40 per cent by then. To achieve these goals, more lithium batteries and more reliable sources of cobalt raw materials will be needed.