Volvo will use blockchain authentication to ensure that its cobalt was not sourced using child labor. In order to source cobalt, the company will work with both CATL and LG Chem. However, Volvo will also work alongside blockchain companies to ensure materials were ethically sourced. Volvo's new blockchain authentication agreement will span a decade.
Martina Buchhauser, the Volvo Head of Procurement, spoke on Volvo's new use of blockchain, stating "With blockchain technology, we can take the next step towards ensuring full traceability of our supply chain and minimizing any related risks, in close collaboration with our suppliers."
Cobalt is commonly used in the production of lithium-ion batteries, and often times cobalt mines use child labor. As Volvo is rapidly expanding its EV production, it is also ensuring its materials are sourced ethically.
Anti-Child Labor EV Production
Volvo Will Use Blockchain Authentication to Track Its Cobalt
Trend Themes
1. Blockchain Authentication - Using blockchain technology to authenticate and trace the supply chain, minimizing risks and ensuring ethical sourcing.
2. Ethical Sourcing - Increasing focus on sourcing materials from suppliers that follow ethical practices, addressing concerns like child labor.
3. Expansion of EV Production - Rapidly expanding electric vehicle production to meet the growing demand for sustainable transportation solutions.
Industry Implications
1. Automotive - Incorporating blockchain authentication in the automotive industry to track materials, promote transparency, and establish trust in ethical sourcing.
2. Renewable Energy - Adopting ethical sourcing practices in the renewable energy industry to maintain a sustainable and responsible supply chain for battery production and other components.
3. Blockchain Technology - Utilizing blockchain technology to disrupt traditional supply chain management and authentication processes across various industries, ensuring transparency and accountability.