Right now, world mining group BHP announced that it signed a nickel provide settlement with Tesla. Moreover, BHP will collaborate with Tesla to make the battery supply chain extra sustainable, with a deal with end-to-end uncooked materials traceability utilizing blockchain.
Primarily based in Australia, BHP is the world’s largest mining agency by market capitalization. It can provide Tesla with nickel from its Nickel West operation, which claims to have a low carbon footprint in comparison with its rivals.
Nickel is a key steel used to make batteries for electrical autos. Within the close to future, Tesla is about to spend greater than $1 billion a 12 months on battery uncooked supplies from Australia, given its mining companies’ accountable manufacturing practices.
Blockchain is used to supply a everlasting, immutable provide chain file of steel and mineral manufacturing. This implies finish customers can hint and confirm sustainable and accountable sourcing practices in mining. A blockchain implementation additionally permits proofs of accountable sourcing to be shared whereas defending confidential or aggressive info.
Utilizing blockchain for traceability options just isn’t information to the mining trade. October 2019 noticed seven main mining and metals firms, together with Glencore and Tata Metal, kind a blockchain consortium to make sure accountable sourcing, backed by the World Financial Discussion board. IBM has additionally partnered with RCS World to create the Responsible Sourcing Blockchain Network, joined by Ford, VW, and Volvo, to make sure the sustainability of their provide chains. This 12 months noticed a new consortium fashioned for cobalt traceability by Glencore, China Molybdenum Co (CMOC) and Eurasian Sources Group (ERG).
Aside from the consortiums, main mining companies, like Rio Tinto, have additionally launched their very own blockchain sustainability options. And Circulor is utilizing blockchain for cobalt traceability in batteries at the side of auto producers.
BHP is working with blockchain know-how extra typically. Final 12 months it executed a $14 million commerce on the MineHub blockchain platform.