News at a glance
Volkswagen Group, the German multinational automotive manufacturing company has made an official announcement that it is going to use blockchain technology for tracking its supply chain and logistics of minerals. The company made this announcement on Thursday in which Volkswagen Group said that it is adopting blockchain technology for the procurement of cobalt, which it uses in the manufacturing of Lithium-ion batteries for its electric vehicle.
Presently, most of the industries depend on the manual process for the procurement of minerals. Some third-party companies perform all the audits of these operations. The whole audit process becomes time-consuming as well as costly. One of the main advantages of implementing blockchain in mineral sourcing is that companies become able to meet the various standard and compliances set out by the Organization for Economic Cooperation and Development (OECD). With blockchain technology, companies will be able to keep and maintain a clear record of minerals sourced by them.
IBM sourced Blockchain
Volkswagen will use permissioned blockchain platform developed by IBM. The IBM-sourced blockchain will work on the hyper ledger fabric to provide tracking and placement record of its mineral supply chain. Companies like LG Chem, Huayou and RCS Global are part of this industry collaboration.
In its official announcement, Volkswagen said that all the participants who are involved in this collaboration will be able to access and contribute data in order to provide real-time information on mineral tracking.