According to an update that flew around the world of technology in favor of blockchain technology, Volvo, an ageless car manufacturing company announced the application of blockchain technology to implement global traceability of cobalt used in its batteries.
Volvo Cars, in a report, explained that one of the major challenges faced by car manufacturers is the traceability of raw materials applied in producing Lithium-ion batteries, such as cobalt.
The report added that Volvo Cars is determined to achieve absolute traceability so that its customers can drive its electric car products with the mind that the materials used in the making of the batteries are from reliable and responsible source.
How Blockchain Technology Serves as Reliable Solution
According to the update made available by Volvo Cars, Blockchain technology has transparent and reliable means of sharing data, which has been since the years of its existence. It added that the nascent technology impressively boosts transparency of raw material supply chain, which monitors and makes sure any form of alteration does not go undetected.
In order to make this a reality, Volvo cars has sealed partnership with two giant battery supplying companies in China and South Korea that are known to be the atop in blockchain technology globally. The two giant battery suppliers are CATL and LG Chem, located in China and South Korea respectively.
The head of procurement at Volvo Cars, Martina Buchhauser, while reacting to the mission of the company spoke expressly about the commitment of the car manufacturing firm regarding its mission to secure ethical raw materials.
He said “We have always been committed to an ethical supply chain for our raw materials,” said Martina Buchhauser…”
He continued by stressing the capability of blockchain technology in solving the problems emerging from the traceability of raw materials.
“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.” Martina Buchhauser said.
About Blockchain Technology
Blockchain can be described as a digital ledger housing the list of records connected together in pairs through cryptography. In supply chain, blockchain technology supplies records of transactions that will remain unchanged.
It also ensures a common set of rules to control the type of data to be recorded, which enables users to verify and audit transactions without any interference.