Mercedes-Benzis working with blockchain startup Circulor on a pilot project fortransparency on CO2 emissions in the cobalt supply chain. The Germanautomaker is aiming for a carbon-neutral passenger car fleet underits ‘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.
Thepilot by Mercedes and Circulor will track the emissions of greenhousegases and the secondary materials in the battery manufacturing supplychains. Additionally, blockchain will be used to ensure allparticipants follow Daimler’s sustainability standards in thesupply chain. This is one of the initial efforts for a carbon-neutralsupply chain, and Mercedes is working with an undisclosed batterycell supplier for the project.
Theproject partners are focusing on cobalt procurement, which enters thebattery supply chain from recycling facilities. The blockchain willmonitor the manufacturing of car batteries and the resultant CO2emissions involvedin production.Mercedes said it wants to create a circular economy in the long run.
“WithAmbition2039, Mercedes-Benz Cars has set itself high goals. We canonly get there in close cooperation with our suppliers. The key istransparency: It is our aspiration to make all processes transparentand traceable,” said Markus Schafer, Member of the Board ofManagement of Daimler AG and Mercedes-Benz AG. “We are the firstmanufacturer to use blockchain technology to map CO2 emissions in theglobal battery cell supply chain.”
Whileit is recording emissions data of its suppliers, Mercedes-Benz isalso conducting workshops for them in order to identify effective CO2reduction measures. Last year, the carmaker said it was prototyping ablockchain network to enforce suppliercontractual obligations,particularly for sustainability and ethical compliance.
Meanwhile,the parent company Daimler has independent blockchain projects. A fewmonths ago, DaimlerTrucks andCommerzbank ran a pilot to use the Daimler Truck Wallet to makepayments with e-euros from Commerzbank. It is also working withstartup Filament ona blockchain project for remanufactured components.
DaimlerFinancialServices hasdeveloped a blockchaincar wallet solutionin collaboration with four startups.
