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), Bloomberg’s primary research service, covers clean energy, advanced transport, digital industry, innovative materials and commodities. We help corporate strategy, finance and policy professionals navigate change and generate opportunities.

Available online, on mobile and on the Terminal, BNEF is powered by Bloomberg’s global network of 19,000 employees in 176 locations, reporting 5,000 news stories a day.
Sign up for our free weekly newsletter →

Want to learn how we help our clients put it all together? Contact us