Blockchain to make Polestar supply chain transparent
The origin of materials for vehicle batteries is a tricky matter: car manufacturers do not want to expose themselves to the suspicion of obtaining their input products from ecologically and socially questionable sources. To monitor the origin of such materials, the Swedish electric car manufacturer Polestar intends to use the blockchain. For this purpose, the Volvo subsidiary has entered into a strategic alliance with the blockchain provider Circulor.
By using blockchain technology, Polestar wants to ensure the traceability of deliveries. As a side effect, the process also enables CO2 tracking – an important factor against the background of stricter environmental legislation.
According to Polestar, traceability is a top priority in the company’s environmental strategy. With this measure, the electric car manufacturer aims not least to promote responsible procurement. The initial focus is on the minerals and materials used in the batteries.
Circulor supports companies in setting up more sustainable supply chains and works with blockchain technology to trace materials. Blockchain is a digital registry that contains a list of records linked by cryptographic methods. The process creates a “digital twin” for the raw material and the material is then tracked through the supply chain. This creates a digital ‘thread’ that tracks and records the various industrial processes and transformations it goes through.
This means that the source and methods by which raw materials are extracted, processed and transported can be better controlled. Blockchain technology helps to ensure that the materials used in battery production come from the exact mines or recycling facilities that have been selected and contracted for. Blockchain technology is already being used in Polestar 2 to ensure the traceability of cobalt in its batteries.
One of Polestar’s goals is for consumers to be able to trace Polestar’s supply chain thanks to the product sustainability statement. It provides information on the footprint and traced risk materials through labelling on the company website and in Polestar Spaces.
An element of the partnership is also tracking CO2e through the supply chain. The greenhouse gas tracking solution offered by Circulor provides a more accurate footprint than using generic emissions data from databases. With the help of CO2e tracking, Polestar wants to be able to show the emissions that have been generated per plant as part of the production process, as well as the emissions that have been taken on by suppliers through the supply chain.