Volvo Cars will be the first car manufacturer to adopt blockchain technology to trace the cobalt materials used in batteries worldwide. Last month, the company released the first pure electric vehicle XC40 Recharge.
One of the challenges facing automakers in sustainable development is how to ensure the traceability of the raw materials used in the production of lithium-ion batteries such as cobalt, and Volvo Cars has been committed to achieving full traceability to ensure that Volvo electric vehicles driven by users The battery materials used in automobiles are purchased in a responsible manner.
Blockchain technology establishes a transparent and reliable data sharing network, so that information about the source of raw materials cannot be changed without being noticed, thus greatly improving the transparency of the raw material supply chain.
At present, Volvo Car has reached an agreement with its two global battery suppliers-China's CATL and South Korea's LG Chem, as well as the world's leading blockchain technology company to ensure the traceability of cobalt materials starting this year.
After successfully launching the pilot program earlier this summer, technology companies Circulor and Oracle ran blockchain technology on the CATL blockchain, while Responsible Sourcing Blockchain Network (RSBN) and responsible procurement experts RCS Global and IBM are working on LG Chem The technology is used in their supply chain.
Blockchain is a digital ledger technology that contains a series of records that are linked to each other by a password. In the supply chain, the transaction records created by the system cannot be changed. At the same time, a set of general rules are implemented on the data that can be recorded, allowing participants to independently verify and review transaction records.
In the case of Volvo Cars, the data in the blockchain will include attributes such as the source, weight and size of cobalt, the chain of custody and information to determine the participant ’s behavior in accordance with the OECD (OECD) supply chain guidelines. This method helps Establish trust among participants in the supply chain.
Last month, Volvo Cars launched the XC40 Recharge model, which is the first model in Volvo Cars' upcoming electric vehicle series. By 2025, the company expects half of its global car sales to come from pure electric vehicles, and the remaining half will be hybrid vehicles.
Last month, Volvo Cars also launched a climate plan, which includes a significant reduction of 40% in carbon emissions per car by 2025, and continued its commitment to comply with business ethics throughout its operations and supply chain.
CATL and LG Chem are both well-known battery manufacturers and have long supplied lithium-ion batteries for the global automotive industry. Both companies meet Volvo Cars' strict procurement guidelines in terms of technology leadership, supply chain responsibility, carbon emissions reduction, and competitive cost models.
The cooperation agreement between Volvo Cars, CATL and LG Chem includes supplying batteries for next-generation Volvo and Polestar models such as XC40 Recharge within the next ten years.