Major automaker Mercedes-Benz and blockchain startup Circulor are jointly launching a pilot project to track carbon emissions in the cobalt supply chain.
According to a press release on January 30, the Mercedes and Circulor project is part of the Startup Autobahn plan, which aims to identify the next generation of cars. The two companies will deploy blockchain to track the emissions of climate-related gases and the amount of recycled materials extending along the battery manufacturers' complex supply chain.
Mercedes ultimately intends to use the data collected during this pilot to develop its new carbon-neutral passenger vehicle fleet.
But first, cobalt
The project initially focused on the supply of cobalt, which recently caused problems related to provenance and ethics. Cobalt is a key mineral for the manufacture of lithium-ion batteries. Most of the cobalt production comes from the Democratic Republic of the Congo, and the region has been criticized for unethical cobalt mining conditions. In 2017, the United Nations estimated that 168 million children worldwide were in exploitative working conditions, and there were approximately 40,000 children in cobalt mines in the Democratic Republic of the Congo. This means that it is particularly important for companies to understand where the raw materials for their products come from.
The blockchain-based pilot program will map the production process of these materials and their associated carbon emissions, and record how many recycled materials are used in the supply chain.
Allegedly, this will help Mercedes determine whether its partner companies comply with its sustainability requirements, especially in terms of human rights.
Automakers gradually embrace blockchain
Mercedes is not the first car manufacturer to turn to blockchain technology on issues of sustainability and ethical product procurement. Volvo has also partnered with Circulor to track raw materials through the supply chain to its battery manufacturers and then to Volvo Cars.
Indian automaker Tata Motors announced last September that it intends to integrate blockchain solutions into its internal processes. The company hopes to apply blockchain-based solutions to all aspects of the automotive industry, including the parking market, demand forecasting algorithms and real-time fuel quality monitoring.
