The longstanding car company Volkswagen is looking to blockchain to track mineral supply chains, reports CoinDesk.
Working together for a greater purpose
According to a blog post from the company, it has joined up with something called an open industry collaboration. Essentially, this group allows for the following:
“Today Volkswagen joined an open industry collaboration for the responsible sourcing of strategic minerals that will use blockchain technology to increase efficiency, sustainability and transparency in global mineral supply chains. Joining the collaboration will enable the Volkswagen Group to gain greater insight into the provenance of cobalt used in lithium-ion batteries for electric vehicles and other types of minerals used elsewhere in the production of vehicles.”
This platform for tracing minerals will be built on IBM Blockchain technology in combination with Hyperledger. Not only will it help trace and find the source of certain minerals, but the technology will also streamline accessibility.
Right now, the process of mining is “laborious” and it’s difficult for these groups to abide by industry rules and be efficient. However, this process is compatible with standards brought in by the Organization for Economic Cooperation and Development (OECD).
All participating parties will see validation from the RCS Global Group to ensure proper sourcing. Of course, thanks to the blockchain, all records will be immutable, secure, and properly permissioned.
Joining a winning team
Others within this group are Ford Motor Company, LG Chem, and Huayou Cobalt. The post continues:
“Volkswagen Group will contribute its vast business acumen to the initiative being one of the world’s leading automotive OEMs with suppliers and production facilities worldwide as well as first-hand knowledge of sustainability in supplier relations and mineral sourcing at a global scale.”
Eventually, this open collaboration will expand into other industries. Mining operations, aerospace, and consumer electronics make up some examples. Otherwise, IBM’s blockchain technology is in use as a cryptocurrency platform for stablecoins.