# Volvo Cars: Blockchain Traceability of Cobalt in Electric Vehicle Supply Chain

> 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.

**Sector:** Secondary sector · **Industry:** Automotive industry · **Organisation:** Volvo Cars · **Maturity level:** Production

Canonical URL: https://www.sapientblock.com/en/use-cases/volvo-cars-kobalt-herkunft-transparent-belegen

## 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."

## Benefits

- Meeting regulatory requirements and compliance standards through seamless documentation of raw material origin.
- Consumers can be confident that their electric vehicles contain batteries produced without child labour and under ethical conditions.
- 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.
- Simplifying compliance audits and supplier evaluations through automated, immutable data capture.

## Challenges

- High implementation costs and the need to encourage all suppliers to participate in the blockchain initiative.
- 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.
- 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.

## Sources

- [Volvo Cars macht mit Blockchain die Herkunft von Kobalt in Hochvoltbatterien nachverfolgbar](https://www.volvoclub.at/volvo-cars-macht-mit-blockchain-die-herkunft-von-kobalt-in-hochvoltbatterien-nachverfolgbar)
- [Volvo baut Blockchain-Nutzung aus](https://www.cio.de/article/3692840/volvo-baut-blockchain-nutzung-aus.html)
- [Volvo Cars Pressemitteilung](https://www.volvocars.com/at/media/press-releases/DD571EB91F24F355/)