Volvo Cars: Blockchain Traceability of Cobalt in Electric Vehicle Supply Chain
Sector: Secondary sector · Industry: Automotive industry · Organisation: Volvo Cars · Maturity level: Production
Volvo Cars uses blockchain technology to achieve complete traceability of cobalt in the high-voltage batteries of its electric vehicles such as the Volvo XC40 Recharge. The company collaborates with battery suppliers CATL and LG Chem to ensure ethical sourcing of this critical raw material and create transparency throughout the entire supply chain. Following a successful pilot project with CATL in summer, the solution is now being rolled out across CATL's entire supply chain and introduced at LG Chem.
Documentation status
- Project status: Production
- Evidence: Evidence high
- Editorial review: Ufuk Avci, 15 April 2026
Description
Volvo Cars was the first car manufacturer worldwide in 2019 to make the cobalt in its high-voltage batteries fully traceable via blockchain. The blockchain records for each cobalt batch: origin, weight, size, certificate of conformity (CoC), and proof of OECD supply chain compliance. Two parallel systems are in use: Circulor and Oracle for the CATL supply chain; the RSBN (Responsible Sourcing Blockchain Network) with RCS Global and IBM (Hyperledger Fabric) for the LG Chem supply chain.
Cobalt is a central component of lithium-ion batteries and is mainly mined in the Congo — often under problematic conditions. Volvo Cars responded: as the first car manufacturer worldwide, since 2019 the company has made the cobalt in its high-voltage batteries fully traceable. To this end, Volvo signed agreements with its two global battery suppliers CATL (China) and LG Chem (South Korea) as well as specialised blockchain technology companies. For the CATL supply chain, Circulor and Oracle implement the blockchain — following a successful pilot project in summer 2019. For the LG Chem supply chain, the Responsible Sourcing Blockchain Network (RSBN) is responsible, operated by RCS Global and IBM based on Hyperledger Fabric. RSBN members also include Ford, the Volkswagen Group, LG Chem, and Huayou Cobalt. The blockchain stores for each delivery: cobalt origin, attributes such as weight and size, the certificate of conformity (CoC), and proof of OECD supply chain compliance. Martina Buchhauser, Head of Procurement at Volvo Cars: "With blockchain technology, we are taking the next step in close cooperation with our suppliers to ensure full traceability of our supply chain."
Perspectives
B2B — organisations perspective
Battery suppliers and cobalt producers can demonstrate their OECD compliance via the shared blockchain — without having to duplicate certification processes for each customer. The RSBN is designed for cross-industry use and is open to other supply chain actors after onboarding assessment.
B2C — consumers perspective
Customers of the Volvo XC40 Recharge and the entire Recharge family can be confident that the cobalt in their battery was sourced responsibly. Volvo aims to have half of its global sales as pure electric cars by 2025 — cobalt transparency is a key sustainability commitment.
Employees perspective
Procurement and compliance teams can verify cobalt origin directly from the blockchain — including certificates of conformity and OECD proofs — instead of manually obtaining these from suppliers.
Benefits
General
- Complete transparency over the origin of critical raw materials throughout the entire supply chain.
- Ensuring ethical procurement standards and avoiding raw materials from problematic sources.
- Strengthening the corporate image through demonstrable sustainability measures.
B2B — organisations
- Meeting regulatory requirements and compliance standards through seamless documentation of raw material origin.
B2C — consumers
- Consumers can be confident that their electric vehicles contain batteries produced without child labour and under ethical conditions.
Employees
- Simplifying compliance audits and supplier evaluations through automated, immutable data capture.
Challenges
General
- Integration of different blockchain platforms and coordination of multiple international partners requires significant technical and organisational effort.
- Standardising data formats and processes across the entire global supply chain presents a complex challenge.
B2B — organisations
- High implementation costs and the need to encourage all suppliers to participate in the blockchain initiative.
Employees
- Employees must be trained in new blockchain technologies and adapt to changed workflows.
Technology foundation
Volvo Cars relies on different blockchain platforms depending on the supplier: the RSBN platform is based on the IBM Blockchain Platform and uses Hyperledger Fabric for collaboration with LG Chem, while a solution from Circulor and Oracle is used for CATL. These technologies enable every step of the cobalt from the mine to the finished battery to be documented immutably and transparently.
Implementation examples
Volvo Cars cobalt traceability with CATL and LG Chem
Volvo Cars wanted to ensure the ethical sourcing of cobalt for electric vehicle batteries and create transparency in the complex global supply chain. The company aimed to minimise reputational risks and meet compliance requirements.
Volvo Cars implemented a blockchain-based traceability solution for cobalt in electric vehicle batteries with suppliers CATL and LG Chem.
After a successful pilot project with CATL in summer, Volvo Cars is rolling out the blockchain solution across the entire CATL supply chain and introducing it at LG Chem. The company uses different platforms: the RSBN platform with IBM Blockchain Platform for LG Chem and a Circulor-Oracle solution for CATL. The initiative is part of the Responsible Sourcing Blockchain Network with partners such as Ford and Volkswagen Group.
The solution addresses the challenge of opaque cobalt supply chains and the risk of using raw materials from unethical sources. It enables tracking cobalt from the mine to the finished battery and ensures no child labour or unethical practices are involved.
Tags
Supply chain, Traceability, Cobalt, Electromobility, Sustainability