The Volkswagen Group has announced that they will form a partnership with IBM Blockchain Group to track their mineral supply chains through blockchain technology. The company announced this on Thursday and added that they want to “responsibly source” minerals like cobalt which is used in lithium-ion batteries for electric vehicles.
For this, Volkswagen have also formed a partnership with Ford and many other industry giants by entering an IBM blockchain powered collaboration.
How will the Volkswagen and IBM partnership improve the tracking of the supply chain?
According to Volkswagen, consumers and miner brands had to depend upon third-party audits and manual processes for sourcing their minerals. This will now be much simpler, as Blockchain technology provides a permanent record for tracing minerals to support the compliance process. It will also become easier for Volkswagen to meet the sourcing standards set up by the Organization for Economic Cooperation and Development (OCED).
For this new project, Volkswagen Group will be using a new authorized platform which is formed on Hyperledger Fabric by the group on the IBM blockchain to track the minerals across the world.
Volkswagen announced that the members of the collaboration which are approved by RCS Global Group responsible for managing the sourcing standards can now contribute and approach the established data securely and trace the flow of minerals over the supply chain.
The Group also added that they are thinking to extend their membership and they are willing to add other industries like consumer electronics, aerospace, and mining operations.
Manish Chawla, IBM’s general manager for global industrial products, said that the main objective of the project is to ensure that the participants can verify the materials of their supply chains on each stop and check whether they are in accordance with the requirements set up by the OCED.
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