By Juhi Mirza
Updated
3 min read
Tesla in their impact 2020 report has mentioned utilizing two major blockchain solutions to procure sustainably produced Cobalt and Nickel as raw materials for the production of their electric vehicle batteries.
The electric car giant Tesla Inc (NASDAQ: TSLA) has published their impact 2020 report in which the company has highlighted that they have been using two blockchain solutions to ensure the sustainable production of Cobalt and Nickel. These responsibly procured raw materials are utilized by the company in manufacturing batteries for their premium electric vehicles.
The impact report also mentions the name of a prominent blockchain solution Re|Source, founded by three major Cobalt producers namely Glencore, Eurasian Resources Group, and China Molybdenum Co. The report further states that the reason why Tesla chose to collaborate with Re|Source was primarily due to the organization being “industry-led and accessible.” The Tesla report also mentions that Re|Source is inclusive to all the parties across the supply chain and is scalable which offers an option to include other critical battery raw materials in the future. Tesla has also assured that the cobalt produced and procured through Re|Source will be sustainably sourced.
Re|Source has primarily been tracing cobalt from the mines of the Democratic Republic Of Congo. At present, the project is being piloted in DRC at EV battery manufacturer units in Europe and is planning to expand their operation to the US and Asia later this year.
Re|Source is also joined by The Responsible Mineral Initiative(RMI) and The Cobalt Institute (TCI), two major industries that have received worldwide acclaim for their deep conception of the issues involved in the cobalt supply chain. These two industrial boards will provide strategic support to Re|Source and will also ensure standardized structural norms to be implemented to make the process simpler and free of any impending errors.
As per the reports, Tesla has also partnered with BHP to procure and facilitate nickel supply for the production of their EV batteries. The company had reportedly run a pilot in Western Australia which goes all the way to the production line established at Gigafactory Shanghai.
Tesla is not the only company that has been actively looking to track raw materials for manufacturing purposes, Volvo and Mercedes have also been following the same source trajectory along with tech provider Circular. Two primary advisors of Re|Source, Norilsk Nickel and Johnson Matthey are said to have been working together to tokenize the supply chain and offer a systematic flow of operations in the particular domain.
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Juhi Mirza is an archaeology major who is obsessive about blockchain/Crypto technology and deems it to be the foundational philosophy of the future. Her dogged ability to research and crystallise technical facts/multiple perspectives into rivetting stories makes her an accessible finance writer. She tends to her archaeological pursuits and loves unearthing the past over the weekends.
