Volvo announced a strategic investment in a blockchain startup named Circulor. Volvo Cars Tech Fund, the car maker’s venture capital investment firm is responsible for this new investment. Volvo plans to increase using blockchain technology in the production process, and Circulor can be its critical partner.
Blockchain Technology Improves Making Green Cars
Circular has been a Volvo partner for some time. Volvo Car now uses the blockchain technology in the battery supply chain. The car industry giant is looking for %100 traceability for cobalt used in its fully electric car, XC40 Recharge P8 which will enter the [prduction phase later this year in Ghent, Belgium.
Volvo launched Cars Tech Fund in 2018 that looks for and invests in high-potential technology startups around the world. Volvo’s recent investment in Circulor helps them collaborate more with the blockchain firm and use its technology for more materials. As a result, not only cobalt but also other minerals used in battery production will become traceable. Mica is one of those critical minerals used in the battery pack of electric cars.
The two companies are considering other areas for collaboration, like tracking and reducing CO2 footprints. If they become successful in doing so, Circular can set a standard for ethical material sourcing in multiple industries. SYSTEMIQ, Total Carbon Neutrality Ventures and Plug & Play are other investors partnering in the latest fundraise by Circulor.
Volvo Cars believe the partnership with a blockchain firm and improving the tracking technology in the car making process can have a considerable impact on the whole business.
“We are committed to an ethical supply chain for our raw materials and our partnership with Circulor has been instrumental in that regard,” according to Martina Buchhauser, chief procurement officer at Volvo Cars. “By supporting Circulor’s ongoing development, we can expand the use of blockchain technology in our operations and contribute to a more sustainable business.”
Volvo is the first company to use blockchain for tracking cobalt in the supply chain of electric cars’ battery. It has implemented the Circulor blockchain with the help of other partners in battery supply chain, CATL and LG Chem.
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