Tesla Uses Blockchain Technology to Ensure Sustainably Sourced Raw Materials for Batteries

Tesla Uses Blockchain Technology to Ensure Sustainably Sourced Raw Materials for Batteries

Tesla is using blockchain technology to ensure that raw materials for battery manufacturing are obtained from sustainable sources. Blockchain solutions track cobalt from the Democratic Republic of the Congo (DRC), and nickel from BHP in Australia.

Tesla published its 2020 Impact Report, which shows the company is using two blockchain solutions to track raw materials used in electric vehicle batteries, which Ledger Insights noted. The company strives to ensure that they are obtained from sustainable sources, which is in line with Tesla's mission.

Blockchain solution Re | Source traces cobalt from the Democratic Republic of Congo. It was founded by three major cobalt producers in the DRC: Glencore, China Molybdenum Co (CMOC), and Eurasian Resources Group (ERG), with Kryha acting as a technology partner. The blockchain solution was publicly announced in 2021 but has been in development since 2019. It is currently being tested in DRC and with electric vehicle battery manufacturers in Europe and plans to launch pilot projects in the US and Asia later this year. Tesla's final pilot is expected in Q4 2021.

“Tesla selected to collaborate with Re | Source because it is industry-led, is designed to be readily accessible and inclusive to all parties across the supply chain and is scalable, which means it can include other critical battery materials in the future,” reads the Tesla report. It will use the solution to ensure it is sustainably sourced. Since Re | Source's founding, Umicore and other supply chain partners have joined. It is also receiving input from Norilsk Nickel, Johnson Matthey, the Responsible Minerals Initiative (RMI), and The Cobalt Institute (CI).

Tesla is also partnering with BHP on nickel sourcing and battery supply chain resilience. So far, the companies have already completed a three-month pilot project from BHP operations in Western Australia to a production line at Giga Shanghai. Tracking CO2 emissions helps determine the ecological footprint of every Tesla vehicle model. This project will also help to identify possible deficiencies in the supply chain and how to fix them.

Blockchain is a continuous sequential chain of blocks containing information built according to certain rules. Communication between blocks is provided by numbering, new data, and data of the previous block. To change the information in the block, you have to edit all subsequent blocks. Most often, copies of block chains are stored on many different computers independently of each other, which makes it extremely difficult to make changes to information already included in the blocks. Therefore, the information obtained in this way is extremely reliable. Working in this way, there is no need to use any information found on material documents/invoices/receipts. All information will be in the blockchain, in digital form.

© 2021, Eva Fox. All rights reserved.


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Article edited by @SmokeyShorts, you can follow him on Twitter

About the Author

Eva Fox

Eva Fox

Eva Fox joined Tesmanian in 2019 to cover breaking news as an automotive journalist. The main topics that she covers are clean energy and electric vehicles. As a journalist, Eva is specialized in Tesla and topics related to the work and development of the company.

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