Volvo to Use Blockchain to Ethically Source its Cobalt

This article first appeared on the BNEF mobile app and the Bloomberg Terminal.

  • 33% of stakeholders planning blockchain for ethical sourcing
  • Blockchains can be expensive to deploy

Volvo Car has entered into an agreement with CATL and LG Chem to implement traceability of its cobalt after a successful blockchain pilot.

Cobalt producers Glencore and ERG have also launched a blockchain initiative with the World Economic Forum to improve cobalt traceability. In battery and vehicle production, Ford Motor, Huayou Cobalt, IBM and LG Chem have launched a pilot platform to address concerns in strategic mineral supply chains.

Some 33% of the 21 companies assessed by BloombergNEF have implemented pilot blockchain initiatives to drive transparency in ethical supply chain tracking and to complement their existing due diligence efforts.

Blockchain can improve transparency and data accessibility, whereas poor due diligence or bad data collection will lead to unreliable results. However, blockchains cost a lot to deploy and there is inadequate deployment infrastructure at a local level. Other weaknesses identified by BNEF include a disconnect between upstream and downstream incentives and poor institutional capacity.

Clients can find the full report ‘Solving the ‘Blood Cobalt’ Challenge for EVs’ on The Terminal or on web

BNEF Shorts are research excerpts available only on the BNEF mobile app and the Bloomberg Terminal, highlighting key findings from our reports. If you would like to learn more about our services, please contact us.

About BloombergNEF

BloombergNEF (BNEF) is a strategic research provider covering global commodity markets and the disruptive technologies driving the transition to a low-carbon economy. Our expert coverage assesses pathways for the power, transport, industry, buildings and agriculture sectors to adapt to the energy transition. We help commodity trading, corporate strategy, finance and policy professionals navigate change and generate opportunities.
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