VW relies on blockchain technology for more transparency in the supply chain

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VW relies on blockchain technology for more transparency in the supply chain-blockchain

In connection with electromobility, cobalt repeatedly comes up in the media as an important raw material. However, the mining of the raw material is always a little negative. It is rather difficult for car manufacturers to keep track of the conditions under which cobalt is mined.

That is why BMW started tracking the origin of cobalt using blockchain technology a good year ago. Now VW has also joined an industry initiative for responsible sourcing of strategic minerals. Blockchain technology is intended to increase efficiency, sustainability and transparency in global and complex supply chains.

By joining the initiative, Volkswagen will gain better insight into the origin of cobalt. Other minerals used in vehicle production can also be tracked in this way.

Blockchain technology as a supplement to existing assessment and testing procedures

The blockchain technology is to be seen as a supplement to the assessment and testing procedures currently used in the Group, which are implemented by the Organization for Economic Co-operation and Development (OECD) established standards for responsible procurement. In addition, the technology enables permanent records of adherence to compliance regulations and rules. Traditionally, supply chain partners and customers have relied on tedious manual processes to ensure compliance with widely accepted industry standards.

VW’s platform is built on the IBM Blockchain platform and on the Linux Foundation’s Hyperledger fabric. This enables the car manufacturer to trace the origin of minerals and is transparent for all companies in the supply chain. The network has been validated by the RCS Global Group for compliance with responsible sourcing standards. Members can access and amend secure and immutable data to track and record the path of minerals in near real time.

In addition to Volkswagen, companies such as Ford Motor Company, Huayou Cobalt, IBM, LG Chem and RCS Global Group are involved in the blockchain network. Based on its open structure, the network will focus on attracting additional members from other industries such as aviation, consumer electronics and the mining industry.

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