# Blockchain-based Cobalt Traceability in Battery Production

> 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.

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

Canonical URL: https://www.sapientblock.com/en/use-cases/ford-kobalt-ethisch-bis-batterie-belegen

## 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."

## Benefits

- Proven ethical sourcing strengthens brand reputation and creates competitive advantages with sustainability-conscious customers.
- Consumers can trace the origin of their products and make informed purchasing decisions for ethically sourced goods.
- 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.
- Digital tools simplify the work of procurement and compliance teams through automated documentation and risk assessment.

## Challenges

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

## Sources

- [Ford teams with IBM to trace cobalt on the blockchain](https://techhq.com/news/ford-teams-with-ibm-to-trace-cobalt-on-the-blockchain/)
- [Ford, Huayou Cobalt in blockchain project to monitor DRC cobalt supplies](https://www.fastmarkets.com/insights/mining-indaba-ford-huayou-cobalt-in-blockchain-project-to-monitor-drc-cobalt-supplies/)
- [Ford nutzt IBM Blockchain zur ethischen Kobalt-Beschaffung](https://deutsche-wirtschafts-nachrichten.de/2019/01/16/ford-nutzt-ibm-blockchain-zur-ethischen-kobalt-beschaffung)
- [Volvo, VW join Ford in IBM blockchain cobalt traceability network](https://www.ledgerinsights.com/volvo-vw-ford-ibm-blockchain-cobalt-traceability-responsible-minerals-rsbn/)
- [Blockchain and sustainability through responsible sourcing](https://www.ibm.com/de-de/think/insights/blockchain-and-sustainability-through-responsible-sourcing)