Automaker BMW has partnered with Circulor, a London-based start-up, to use transaction-recording technology blockchain to prove batteries for its electric vehicles will contain only clean cobalt.
The competition is intensifying to use blockchain, the technology that underpins cryptocurrencies such as Bitcoin, to try to eliminate battery minerals produced by child labor.
Cobalt is in focus because around two-thirds of the world’s supplies are from Democratic Republic of Congo, where roughly one-fifth of cobalt is mined in unregulated artisanal mines.
The start-up Circulor is meanwhile working on a pilot for BMW to map cobalt that is already assumed to be clean because it comes from jurisdictions such as Australia and Canada or from industrial production in Congo, Circulor said.
We believe it makes economic sense to start with sources that aren’t a problem. Once the system is proven and operating at scale, one can tackle the harder use cases like artisanal mines.
A BMW spokesman said the firm could not comment at this stage.
The pilot shows it is possible to give clean cobalt a barcode and enter the main stages of its journey on to an immutable ledger using blockchain technology because that is an efficient way to prove cobalt is clean, it had the potential to cut regulatory compliance costs, although the economics still needed to be proved.