Volvo uses blockchain technology for sustainable battery production

Volvo uses blockchain technology
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Volvo uses blockchain technology for sustainable battery production. Therefore, Volvo Cars is the first car manufacturer to commit itself to the highest level of transparency and guarantees that the raw materials for the battery, production, and recycling are sustainable.

To learn everything about blockchain you should also read our article “What is Blockchain and how does it work“.


It is one of the greatest challenges for manufacturers of electric vehicles, the sustainable production of high-voltage batteries. Volvo only uses lithium-ion batteries in its electrified models, which last the entire life of the car.

And then? Volvo is already examining options for how the batteries can be used after their regular life cycle. For example, for storing solar energy. They are currently testing the use of batteries from disused e-buses in an alternative housing project in Gothenburg.

Maximum Transparency through Blockchain Technology

Volvo Recharge Battery Package
Volvo wants to radically reduce CO2 emissions as part of a new climate plan with the electrification of the entire vehicle fleet

Sustainability begins with the extraction of rare raw materials, such as cobalt, which are needed for lithium-ion batteries. Volvo Cars is doing pioneering work here and is striving for maximum transparency as the world’s first automobile manufacturer. Thanks to blockchain technology, the origin of the raw materials can be traced back to the origin. In this way, Volvo Cars ensures that only sustainable and certified raw materials are used.

A blockchain is like a digital “book” that contains a list of data records that are linked to one another via cryptography. Every transaction within the supply chain is recorded and can no longer be changed.

The data in the blockchain contain specific information about the origin of the cobalt, i.e. attributes such as weight, size, the certificate of conformity (CoC), etc., which prove that it complies with the OECD supply chain guidelines.

Blockchain Technology for Global Sourcing

volvo digital ledger for electric car batteries
A blockchain is like a digital ledger that contains a list of records that are linked by cryptography. Every transaction within the supply chain is recorded and can no longer be changed.

The batteries for the electrified Volvo models come from the manufacturers CATL from China and LG Chem from South Korea. CATL and LG Chem are renowned battery manufacturers with many years of experience in the delivery of lithium-ion batteries. They meet the strict procurement guidelines of Volvo Cars and guarantee responsible supply chains, reduction of CO2 emissions, and competitive prices.

The blockchain is operated by the technology companies Circulor and Oracle. The Responsible Sourcing Blockchain Network (RSBN) is introduced together with specialists from RCS Global and IBM.

With its transparent traceability, Volvo Cars ensures that customers can drive electrified models with a clear conscience because the raw materials for the batteries are sourced responsibly and sustainability is guaranteed beyond the life cycle. When the first fully electric Volvo XC40 Recharge Pure Electric rolls onto the road, customers can be sure that their high-voltage battery has been produced sustainably.


We at iMi are delighted that the automotive industry is now also interested in blockchain applications. While we see the big question mark in choosing the right platform. The future will tell whether Volvo has chosen the right partners. After all, Oracle and IBM are cloud-based service providers.

However, you don’t need new systems to efficiently implement such blockchain applications. The technology exists, therefore, the implementation can be way easier and safely at a lower cost.

If you are interested in supply chain solutions, then don’t hesitate to contact us for enterprise blockchain consulting. We can give you system independent advice and finally, we do also blockchain coding as a service for you. All in one.

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Marcel Isler

Marcel Isler

Marcel is a Business Economist and founder of iMi Blockchain. A Consultant and international Keynote Speaker. He studied at the University of Oxford. He helps enterprises to implement Blockchain applications. On our blog, he writes about distributed ledger technology, smart contracts, cryptocurrencies, industry news, and future trends.

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