Major automaker Mercedes-Benz and Emerging Blockchain Circulator are launching a pilot model aimed at tracking carbon emissions in the cobalt supply chain.
According to a press release issued on January 30th, the Mercedes and Circular project comes as part of the startup company Autobahn, which aims to identify next-generation cars. The companies will deploy blockchain to track climate-related gas emissions and the amount of recycled materials along the complex supply chains of battery cell manufacturers.
Finally, Mercedes intends to use the data collected during this guide to develop a new carbonless passenger car fleet.
But the beginning is cobalt
The project will initially focus on cobalt supply, which has recently raised source and ethical issues. Cobalt is a key metal for making lithium-ion batteries, as most cobalt production comes from the Democratic Republic of the Congo, a region criticized for unethical mining conditions. In 2017, the United Nations estimated that 168 million children were in exploitative working conditions worldwide, with about 40,000 children in cobalt mines in the Democratic Republic of the Congo. This means that it is very important for companies to know where their product materials come from.
A blockchain-based pilot program will map the production flow of these materials and their associated carbon emissions, as well as record the amount of recycled materials used in the supply chain.
This will help Mercedes to determine if its partner companies comply with the requirements of sustainability, especially when it comes to human rights.
Automobile manufacturers are gradually adopting blockchain
Mercedes is not the first car manufacturer to resort to blockchain technology on sustainability issues and the provision of ethical products. Volvo has also partnered with Circular to track raw materials through the supply chain to the battery manufacturer, then to Volvo cars.
Indian automaker Tata Motors also announced its intention to integrate blockchain solutions into its internal operations last September. The company wants to implement blockchain-based solutions in various aspects of the automotive industry, including the parking market and demand-forecast and real-time monitoring of fuel quality.