Volvo Cars becomes the first manufacturer to incorporate blockchain technology
Volvo Cars will become the first automobile manufacturer to implement global traceability of cobalt used in its batteries by applying a blockchain technology. The announcement follows the reveal of brand's first fully electric vehicle, the XC40 Recharge.
The traceability of raw materials is one of the main sustainability challenges faced by automobile makers. Volvo Cars remains committed to full traceability, which will ensure that drivers can drive their electrified Volvos knowing the material for the batteries has been sourced accordingly. As you might know, the Blockchain technology establishes a transparent and reliable shared data network and significantly boosts transparency of the supply chain of raw materials. It gives information about material's origins and the information cannot be changed undetected.
Furthermore, Volvo Cars team has managed to reach an agreement with its two global battery suppliers, CATL of China and LG Chem of South Korea, and some of the leading blockchain technology firms to implement traceability of cobalt. Neat!
As you might know, the blockchain technology is a digital ledger, which contains a list of records, linked to each other via cryptography. Within the chains, the technology creates records of transactions that cannot be changed, while also enforcing a common set of rules for what data can be recorded. This allows all participants to verify and audit transactions independently.
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Source: Volvo Cars