Blockchain technology will be used for supply network of cobalt, which is a main raw material of a secondary battery. Because production and distribution processes of Cobalt are unclear, controversy regarding exploitation of child labor is brought up consistently.
According to industries, a Canadian resource development company called Cobalt Blockchain and a blockchain company called DLT Labs established joint corporate earlier this month and they are developing blockchain-based platform for supply network of cobalt that is produced from DRC (Democratic Republic of the Congo) based on distributed ledger technology.
Cobalt is a main raw material that is used for cathode material of a secondary battery. Half of deposit of cobalt in the world is concentrated in DRC. Cobalt that is mined from DRC goes through refining process in China and is supplied to a battery manufacturer afterwards. However, society was greatly impacted when Amnesty International exposed the fact that many children were brought into poor work environment to mine cobalt.
Although there is a system that monitors path of cobalt from production to actual use, authentication process was still unclear. There were many criticisms towards the fact that data cannot be trusted since raw materials are mixed together as they go through complicated supply network.
Cobalt Blockchain signed a contract with mines in DRC and it is going to record ledgers on transactions into supply network by using blockchain technology. Dealers also record detailed information until cobalt, which is produced by skilled miners, with digital tag that contains detailed information arrive at refineries. By doing so, a final consumer is able to find out who produced cobalt and how cobalt was distributed.
“Diamond trades where there are many incidences of being used as source of conflicts due to complicated distribution structures are already using blockchain technology for quality certification and place of origin.” said a representative for an industry. “Battery manufacturers or electric vehicle manufacturers that are hugely accounted for social responsibilities will be able to select cobalt with transparent supply network.”
Staff Reporter Jung, Hyunjung | iam@etnews.com