BMW to Source ‘ethical’ Cobalt via Blockchain Technology

The automaker partners with UK startup Circulor.

by Viko
06 March • 1 min
In News
Germany’s BMW has teamed up with UK crypto startup Circulor, which will help the carmaker secure supplies of cobalt produced with no child labour through the use of an irreversible ledger based on Blockchain technology, Reuters reported on Monday.

Circulor has been developing a technology to give ‘clean’, or ‘ethical’ cobalt a barcode and enter the main stages of its journey from the mine to the electric car batteries in a ledger that is impossible to manipulate, CEO Douglas Johnson-Poensgen told Reuters.

The news agency did not get a confirmation for the pilot project by BMW.

Cobalt is mined mainly in the Democratic Republic of the Congo (DRC), where child labour is often used, in addition to the existence of a large number of small illegal mines.

This is the second contract BMW signs with a Blockchain company. Last week, China’s VeChain confirmed it has signed a partnership with BMW to help enhance its supply chain.

Using Blockchain to cut costs and improve efficiency becomes increasingly popular in the auto manufacturing industry, especially in Germany. Recently, Volkswagen entered into a partnership with German Blockchain firm IOTA.