February 6, 2019

Blockchain Use Case: Audit Trails for Ford, IBM, and LG

The Rising Challenge of Cobalt Mining in the Democratic Republic of Congo

The Democratic Republic of Congo is at the forefront of cobalt production, essential for lithium-ion batteries in electric vehicles and smartphones. Since 2016, the demand has escalated, causing a significant increase in cobalt prices. This demand surge has brought to light severe ethical issues, including inhumane mining conditions and environmental hazards. The global focus on these problems has intensified, prompting urgent calls for sustainable and ethical mining practices.

How Blockchain Technology is Transforming Ethical Sourcing Practices

Blockchain offers a groundbreaking solution through enhanced transparency and traceability in the supply chain. By using Blockchain to monitor cobalt from extraction to final delivery, ethical sourcing is more achievable. This technology not only ensures that the cobalt is ethically sourced but also plays a crucial role in promoting environmental sustainability and protecting human rights.

Pioneering Ethical Sourcing: The Collaborative Effort of Ford, IBM, and LG

In a significant industry move, Ford, IBM, and LG are implementing a Blockchain pilot project at the Huayou mine in Congo. This initiative aims to establish transparent audit trails and improve supply chain management. Inspired by similar systems in the diamond industry, this project highlights Blockchain's potential in ensuring responsible sourcing of raw materials.

Looking Ahead: Blockchain's Role in Ethical Sourcing and Compliance

Blockchain is not a complete solution for all ethical mining challenges but plays a pivotal role in enhancing the accuracy and reliability of supply chain audits. This technology is increasingly vital for companies aiming to adhere to international standards like the OECD guidelines on responsible sourcing. Blockchain's integration with advanced technologies is setting new benchmarks in ethical sourcing, making it an essential tool for companies committed to responsible and sustainable practices.

February 6, 2019