ReutersLONDON (Reuters) — Automaker BMW is working with a London-based start-up to use transaction-recording technology blockchain to prove batteries for its electric vehicles will contain only clean cobalt, the start-up’s CEO said.
The competition is intensifying to use blockchain, the technology that underpins cryptocurrencies such as Bitcoin, to try to eliminate battery minerals produced by child labor.
Cobalt is in focus because around two thirds of the world’s supplies are from Democratic Republic of Congo, where roughly one fifth of cobalt is mined in unregulated artisanal mines.
One organization has begun a project to work with the artisanal miners to use blockchain to prove they are not using child labor.
The start-up Circulor is meanwhile working on a pilot for BMW to map cobalt that is already assumed to be clean because it comes from jurisdictions such as Australia and Canada or from industrial production in Congo, Circulor said.
A BMW spokesman said the firm could not comment at this stage.
“We believe it makes economic sense to start with sources that aren’t a problem,” Circulor CEO Douglas Johnson-Poensgen told Reuters in an interview.
“Once the system is proven and operating at scale, one can tackle the harder use cases like artisanal mines.”