Mercedes-Benz
is working with blockchain startup Circulor on a pilot project for
transparency on CO2 emissions in the cobalt supply chain. The German
automaker is aiming for a carbon-neutral passenger car fleet under
its ‘Ambitions2039’ project.
U.K.-based Circulor is developing a blockchain track and trace system for industrial supply chains. It is also working with Volvo Cars to use blockchain for tracking recycled cobalt in newly manufactured cars. Cobalt is an essential mineral used in the manufacturing of electric vehicle batteries.
The relationship is part of STARTUP AUTOBAHN. Circulor may be young, but in the last 18 months it has made an impression. It’s first initiative was to trace tantalum in Rwanda for ethical sourcing. This was some time before IBM announced its Responsible Sourcing Blockchain Network which signed up many big names such as VW, Volvo, Ford, Fiat and Glencore. Circulor’s projects also pre-dated the World Economic Forum’s Mining and Metals Blockchain Initiative.
The
pilot by Mercedes and Circulor will track the emissions of greenhouse
gases and the secondary materials in the battery manufacturing supply
chains. Additionally, blockchain will be used to ensure all
participants follow Daimler’s sustainability standards in the
supply chain. This is one of the initial efforts for a carbon-neutral
supply chain, and Mercedes is working with an undisclosed battery
cell supplier for the project.
The
project partners are focusing on cobalt procurement, which enters the
battery supply chain from recycling facilities. The blockchain will
monitor the manufacturing of car batteries and the resultant CO2
emissions involved
in production.
Mercedes said it wants to create a circular economy in the long run.
“With
Ambition2039, Mercedes-Benz Cars has set itself high goals. We can
only get there in close cooperation with our suppliers. The key is
transparency: It is our aspiration to make all processes transparent
and traceable,” said Markus Schäfer, Member of the Board of
Management of Daimler AG and Mercedes-Benz AG. “We are the first
manufacturer to use blockchain technology to map CO2 emissions in the
global battery cell supply chain.”
While
it is recording emissions data of its suppliers, Mercedes-Benz is
also conducting workshops for them in order to identify effective CO2
reduction measures. Last year, the carmaker said it was prototyping a
blockchain network to enforce supplier
contractual obligations,
particularly for sustainability and ethical compliance.
Meanwhile,
the parent company Daimler has independent blockchain projects. A few
months ago, Daimler
Trucks and
Commerzbank ran a pilot to use the Daimler Truck Wallet to make
payments with e-euros from Commerzbank. It is also working with
startup Filament on
a blockchain project for remanufactured components.
Daimler
Financial
Services has
developed a blockchain
car wallet solution
in collaboration with four startups.
