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Blockchain-based Cobalt Traceability in Battery Production

Sector: Secondary sector · Industry: Electronics and electrical industry · Organisation: Ford, Huayou Cobalt, IBM, LG Chem, RCS Global · Maturity level: Pilot

A consortium of Ford, Huayou Cobalt, IBM, LG Chem, and RCS Global developed a blockchain platform to trace cobalt from mine to end product. The pilot project tracked cobalt from Huayou mines in Congo through LG Chem in South Korea to Ford facilities in the USA, ensuring ethical sourcing and minimizing risks like child labor. The project was launched in 2018 and completed in 2019, with additional automakers like Volvo and Volkswagen joining later.

Documentation status

• Project status: Pilot
• Evidence: Evidence high
• Editorial review: Ufuk Avci, 15 April 2026

Description

The Responsible Sourcing Blockchain Network (RSBN) was launched on 16 January 2019 by Ford, Huayou Cobalt, IBM, LG Chem and RCS Global as a blockchain pilot for ethically sourced cobalt. The aim: an open, industry-wide platform for all automotive and consumer electronics supply chains. Technically: IBM Blockchain Platform, Hyperledger Fabric (Linux Foundation). The pilot tracked cobalt from Huayou’s DRC mine through smelting → LG Chem’s cathode/battery plant (South Korea) → Ford plant (USA).

On 16 January 2019, Ford Motor Company, Huayou Cobalt (China’s largest cobalt producer), IBM, LG Chem and RCS Global announced the launch of a blockchain pilot for ethical cobalt traceability. Cobalt — critical for lithium-ion batteries in electric vehicles, smartphones and laptops — is sourced two-thirds from the DRC (Democratic Republic of Congo), a region with known human rights issues in artisanal mining. The pilot simulated the entire supply path: Huayou mine (DRC) → smelter → LG Chem cathode and battery plants (South Korea) → Ford plant (USA). Each point in the network uploads data via bag-and-tag systems or mobile apps; the blockchain creates an immutable audit trail with OECD compliance evidence. In April 2019, Volkswagen Group joined, and in November 2019 the network was officially named RSBN (Responsible Sourcing Blockchain Network). Volvo Cars also joined. From spring 2020, the system went live in production environments. Lisa Drake, VP Global Purchasing Ford: "By collaborating with other leading companies in this network, we intend to use cutting-edge technology to protect human rights and the environment."

Perspectives

B2B — organisations perspective

OEMs from the automotive and consumer electronics sectors can verify the OECD compliance of their mineral suppliers directly on the blockchain via RSBN. Artisanal miners (ASM) are given the opportunity for the first time to prove their compliance and enter global supply chains.

B2C — consumers perspective

Electric vehicle buyers can be confident that the cobalt in their battery has been ethically sourced — documented in an immutable blockchain ledger that records every step from the mine to the vehicle.

Employees perspective

Procurement and compliance staff receive automated tools to monitor the supply chain and can identify risks earlier. Digital documentation reduces manual effort for audits and reporting.

Benefits

General

• Transparent documentation of the entire supply chain builds trust with stakeholders and customers.
• Automated compliance checks reduce costs and effort for manual audits.
• Early detection of risks such as child labour or environmental violations enables proactive action.

B2B — organisations

• Proven ethical sourcing strengthens brand reputation and creates competitive advantages with sustainability-conscious customers.

B2C — consumers

• Consumers can trace the origin of their products and make informed purchasing decisions for ethically sourced goods.

Employees

• Digital tools simplify the work of procurement and compliance teams through automated documentation and risk assessment.

Challenges

General

• Blockchain technology alone cannot fully prevent system manipulation and must be supplemented by physical controls.
• Successful implementation requires cooperation from all supply chain actors, which can be challenging with international suppliers.

B2B — organisations

• High implementation costs and technical complexity can exclude smaller companies from participation.

Employees

• Employees need training in the new technology and existing processes must be fundamentally adapted.

Technology foundation

The project uses IBM Blockchain Platform based on Hyperledger Fabric from the Linux Foundation. This technology enables every step in the cobalt supply chain to be immutably documented and grants all involved partners transparent access to provenance evidence.

Implementation examples

Ford-Huayou Cobalt Blockchain Pilot

Ford wanted to ensure that the cobalt used in its electric vehicles did not come from mines employing child labour or violating other ethical standards. Transparent traceability was intended to reduce compliance risks and strengthen trust among sustainability-conscious customers.

Ford conducted a pilot project for blockchain-based traceability of cobalt from Congolese mines to US production sites.

In December 2018, Ford launched a pilot project for cobalt traceability together with IBM, Huayou Cobalt, LG Chem and RCS Global. The system tracked cobalt from Huayou mines in the Democratic Republic of Congo through LG Chem processing facilities in South Korea to Ford plants in the USA. The IBM Blockchain Platform based on Hyperledger Fabric immutably recorded every step of the supply chain and provided all participants with transparent access to proof of origin.

The system addressed the challenge of lack of transparency in complex international cobalt supply chains. It enabled early detection of ethical and environmental risks and reduced reliance on costly manual audits.

Tags

Supply chain, Sustainability, Traceability, Raw materials, Compliance

Sources

1. Ford teams with IBM to trace cobalt on the blockchain
2. Ford, Huayou Cobalt in blockchain project to monitor DRC cobalt supplies
3. Ford nutzt IBM Blockchain zur ethischen Kobalt-Beschaffung
4. Volvo, VW join Ford in IBM blockchain cobalt traceability network
5. Blockchain and sustainability through responsible sourcing