German automobile makers Volkswagen has unveiled a blockchain pilot to trace its battery supply chain for lead mineral from mining sites to factories.
During the pilot study, all parties will team up to leverage blockchain’s widely praised transparency to obtain useful insights on how battery components are manufactured, their origin, and who handles them.
For instance, by employing the distributed ledger systems, Volkswagen Group hopes to acquire detailed information. The system in turn offers guarantees that battery components are fully compliant with manufacturing requirements.
Innovation with Minespider
To achieve this, the Volkswagen Group is collaborating with Minespider for this project. Minespider focuses their efforts as a mineral supply chain blockchain application. Above all, the deal comprises suppliers and sub-suppliers that supply over two-thirds of the Volkswagen total lead mineral.
“Minespider came about due to increasing awareness and scrutiny of conflict funding and other human rights abuses in the mineral supply chain,” Nathan Williams, Minespiders’ CEO, told Hard Fork.
Therefore, this deal marks Minespider’s first trial with Volkswagen. Williams states that the German automobile giant is presenting more pilot programs. Business spectators are eagerly awaiting a future Volkswagen consortium that involves major Fortune 500 firms.
Taking a First Step
“This [the pilot with Volkswagen]is the first step to proving that supply chain participants can work together to achieve greater transparency,” Williams added. “As a new and emerging field, we expect to learn a lot more about the challenges and requirements of the industry and what is needed to get this adopted at scale.”
Likewise, The Volkswagen Group has been relatively active in the application of blockchain technology for some time. In August 2018, the firm revealed its blockchain-based intentions on Twitter after months of speculation.
Recently, Marco Philippi, the head of the strategy for Volkswagen Procurement, said in a statement:
“Digitalization provides important technological instruments that enable us to track the path of minerals and raw materials in cross-border supply chains in ever greater detail.”
“Together with Minespider we will use the blockchain technology to make our processes more transparent and secure,” he added.
Additionally, blockchain experts are hopeful such studies continue to demonstrate further applications. It is evident that automobile companies are eager to study and harvest blockchain’s potential.