Volvo Invests In Blockchain Traceability Startup Circulor To Track Cobalt Supply Chain
Volvo Cars Tech Fund, a subsidiary of Volvo, announced its investment in blockchain traceability firm Circulor on July 8. The popular carmakers have used Circulor’s traceability solutions previously for tracing cobalt used in their batteries. The use of blockchain became a necessity amid growing concerns over the questionable condition of the laborers and the use of child labor in cobalt mining.
The Volvo Cars Tech Fund has invested in the #blockchain technology firm, @circulor1 to ensure full traceability of the cobalt used within our cars and to provide transparency to our customers. #VolvoRecharged
Learn more here: https://t.co/XZsTVBonxI pic.twitter.com/vgPMaUM8w1
— volvocars (@volvocars) July 8, 2020
Volvo believes the partnership with Circulor would help in finding sustainable solutions. It is also planning to use this traceability solution for carbon emissions from their cars.
Martina Buchhauser, the chief procurement officer at Volvo, commented on their partnership and how it would help them in the long run. She said:
“We are committed to an ethical supply chain for our raw materials, and our partnership with Circulor has been instrumental in that regard. By supporting Circulor’s ongoing development, we can expand the use of blockchain technology in our operations and contribute to a more sustainable business.”
Volvo cars were the first carmakers to implement global traceability for cobalt used in its batteries, and currently, all their batteries are traced via this blockchain solution.
In recent years top carmakers like Volvo, Mercedes, BMW, and many others have been implementing blockchain solutions in their car production. A few of them are focused around the data collected from these vehicles, while a few others have incorporated blockchain for traceability of raw products as well as after-sales services. Blockchain has been a big hit in supply-chain management, be it in the food industry or car industry.