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The RCS Global-backed plan includes artisanal mine buyer Huayou...

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    The RCS Global-backed plan includes artisanal mine buyer Huayou Cobalt, which has been accused of purchasing ore mined by children in the Democratic Republic of Congo.

    Battery maker LG Chem, which has existing joint ventures with Huayou, is also part of the "simulated sourcing scenario", from which RCS wants to build an industry-wide blockchain platform.

    Blockchain is an electronic system where information is logged by a network or computers, making falsification or deletion of data apparently impossible.

    The idea is that cobalt buyers can see where cobalt is mined and processed rather than relying on indpendent company reporting standards.

    The pilot programme will use IBM's blockchain platform.

    RCS said cobalt would be tracked from a Huayou industrial operation in the DRC to LG Chem cathode and battery plants in South Korea and then a Ford operation in the US.

    Ford vice president for purchasing and powerjtrain operatiions Lisa Drake said the programme fitted with the company's policies of protecting human rights and the environment.

    Ford does not have an all-electric model yet but aims to have one out by next year and 40 total electrified models by 2022.

    This week it also announced an update on its alliance with Volkswagen, which is yet to be formalised but could see the American company licensing the German manufacturer's EV platform.

    In 2017, Sky News showed Huayou had bought ore from an artisanal operation that used child labour, although Amnesty International has since commended the company for improving its practices since then.

    It also signed up for RCS' 'Better Cobalt' supply chain programme last year.

    Huayou CEO Chen Hongliang said he was pleased his company was taking part in the pilot.

    "As a leading global battery material provider, we are proud to have an OECD Due Diligence Program and active community support initiatives in place linked to our operations in the DRC," he said.

    "This blockchain pilot is an interesting and potentially important next step in these efforts.

    "We believe in transparency and a collaborative approach to improving production conditions in the DRC cobalt sector, leveraging the project to this end has huge potential."

    RCS Global CEO Nicholas Garret said the simulated test could help cut out current weaknesses in supply chains.

    "Our collective effort allows participating companies to progress from human-led risk management to technology-led impact generation in a highly efficient and cost-effective manner," he said.

    "Augmenting crucial human expertise and experience, this is a demonstration of technology for good, empowering vulnerable communities and protecting the environment."



 
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