The OECD helps companies “respect human rights and avoid contributing to conflict” around the globe when minerals are purchased from abroad.
Volvo also says the digital records cannot be changed, making it harder for companies to disguise the real origin of cobalt stocks.
“We have always been committed to an ethical supply chain for our raw materials,” said Martina Buchhauser, head of procurement at Volvo. “With blockchain technology, we can take the next step towards ensuring full traceability of our supply chain and minimising any related risks, in close collaboration with our suppliers.”
The agreement reached between Volvo, CATL and LG Chem applies “over the coming decade”; the Swedish manufacturer expects fully electric cars to account for half of its worldwide sales by 2025, with CO2 emissions falling by 40% per vehicle.
Its first electric car – the XC40 Recharge – will go on sale early in 2020, with deliveries following later in 2020. It already has seven plug-in hybrid vehicles in its line-up, including the recently announced XC40 T5 Twin Engine small SUV.