BMW, the prominent German car manufacturer, is working with a blockchain startup in London to get clean cobalt, according to Reuters report.
Even though the name of the startup company has not been announced by BMW, the company is considered to be Circulor. This news comes at the heel of another BMW partnership with VEChain Thor, a China-based blockchain-as-a-service (BaaS) company.
A big problem in the cobalt supply-chain is the use of child labor. Around two-thirds of the world’s supply comes from the Democratic Republic of Congo. And one-fifth of the mines in Congo are artisanal mines where child labor laws are not adhered to properly.
At the moment, Circulor is working on a pilot program with BMW to track cobalt from countries like Australia and Canada. The clean cobalt from these countries is being used as a proof-of-concept. Circulor expects to cut down regulatory costs using its barcoding and blockchain recording methods.
The German automaker has not officially confirmed the partnership. However, Circulor CEO Johnson-Poensgen has talked about the partnership in Reuters report.
Blockchain is trending the automotive industry. Various car manufacturers are pursuing opportunities to use blockchains to improve their processes and save money. Daimler AG, the Mercedes-Benz manufacturer, has declared its own cryptocurrency MobiCoin. Porsche is trying out blockchain technology for its cars with XAIN.