Ford, IBM, LG Chem, and Huayou Cobalt have joined forces to use blockchain technology in ensuring that the supplies of major minerals are ethically sourced from the Democratic Republic of Congo. The supply chain previously had no transparency which the coalition seeks to put in place.
An Insight of the Coalition
The quartet of companies is committed to supporting human rights as well as environmental protection as they help infuse transparency into the global mineral supply chains. The group includes participants in every significant supply stage from mine to the end-user.
They intend for a pilot focusing on cobalt as well as exploring the creation of an open and industrywide blockchain platform which could be used in tracing and validating a variety of minerals that are used in the consumer products.
The pilot is underway in the Democratic Republic of Congo to get verification for several consumers as well as businesses who ask for proof that the valuable minerals such as cobalt are fairly sourced. The blockchain project has the task of seeking information that the mining has no further conflict within the region or children are being used to mine.
The Demand for Minerals on the Rise and so is Blockchain-Based Traceability Platform
The potential of Blockchain is only apparent when it’s successively applied to solve a real-world and global problem. Currently, there’s a switch to electric vehicles which has raised the demand for cobalt. However, a lot is connected to the mining of cobalt as it is to most of the valuable minerals such as children being used for mining.
Therefore, there’s a need to track the supply chain efficiently for such minerals in ensuring companies are using the right ways in their production. This process requires monitoring and very accurate electric data.
As a result, the alliance will help to ensure sourcing of the industrially-mined cobalt via the use of blockchain technology in tracing and validate the ethically sourced minerals. Previous some entities like Crypto Globe and the London Bullion Market Association both had turned to blockchain for help in tracking the valuable raw materials as well as metals.