German Carmaker Volkswagen to use IBM blockchain to track its minerals

IBM blockchain is quickly becoming the go-to platform for many leading companies in terms of transparency and traceability. According to multiple reports, automobile giant Volkswagen will be relying on IBM blockchain and the Hyperledger Fabric to track its mineral supply chains.


The German automobile giant will rely on the IBM backed Hyperledger Fabric to make sure that cobalt used for lithium-ion batteries installed in its electric cars is from “responsibly source”

Operating under the IBM blockchain platform, the Hyperledger Fabric project was launched in December 2015 by the Linux Foundation. Known as an industry-wide open source initiative, the project has for aim to advance blockchain technology in every industrial sector.

Through this initiative, automaker Volkswagen hopes to answer to the international community concerning the ongoing human rights abuse and violations in the Democratic Republic of Congo, where two-thirds of global cobalt production comes from. Furthermore, as per a Reuters report, some of the cobalt mines rely on child labor and are controlled by armed rebel groups

Additionally, by implementing blockchain technology in its tracking system, the German company hopes to further abide by the responsible sourcing standards put in place by the Organization for Economic Cooperation and Development (OECD).

Since the beginning of this year, IBM blockchain has been in collaboration with other big companies in regards to this initiative. Most recently South Korea’s LG Corp has been benefiting from the IBM backed platform in terms of transparency and traceability.

In a recent announcement, Volkswagen has shown enthusiasm towards the initiative, as the company believes that  

Participants in the network, validated by RCS Global Group for compliance with responsible sourcing standards, can contribute and access immutable data in a secure and permissioned way to trace and record the flow of minerals across the supply chain in near real-time.



Henry-Claude Madiba

Renewable energy engineer in training. I am only interested in two things, blockchain technology and contributing to making the world a livable place for the next generations.

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