Volvo is Deploying Blockchain Technology to Ensure a Sustainable Battery Supply

While the switch to electric vehicles undoubtedly represents a net good when it comes to human impact on the environment, there is one element of their manufacture which is not without its share of controversy – the batteries.

The raw materials required to make these batteries are often mined in countries where human labour is exploited to an extreme degree, and that’s before we even get on to the environmental impact of the mining operations themselves – although it must be said that the one-off environmental impact of each battery at the manufacturing stage is still less than the impact of a vehicle which will rely on fossil fuels for its entire lifespan.

However, to help ensure the sustainability of its supply of raw materials for battery manufacture, processing, and recycling, global car giant Volvo has been working with its lithium-ion battery suppliers, CATL and LG Chem to use blockchain technology to track shipments of raw materials through the supplier network.

Blockchain can produce immutable records of all transactions in a single unit of cobalt within supply chains and can track details such as weight and height, the source, and custody chain, as well as ensuring suppliers are following OECD guidelines. The goal is to build new levels of transparency and trust in Volvo’s procurement operations and to make sure its electric vehicles are as sustainable as possible.