Blockchain Technology has been seeing a mainstream adoption for the last few months, and the trends only seem to be growing for good. In another breakthrough for the industry, global mining giant Glencore has announced that it has entered the Responsible Sourcing Blockchain Network (RSBN) consortium. The company will now use blockchain technology to source minerals like cobalt responsibly.
The use of blockchain technology in tracking goods is becoming popular by the day, with several companies using it for preventing counterfeit products. On the other hand, the move will further establish blockchain as a major force moving forward, encompassing all industries and sectors. The RSBN consortium itself was created by one of the major technology companies globally, IBM, with automobile behemoths like Volkswagen, and Volvo joining in subsequently. Other founding members include Ford, LG Chem, and RCS Global. Glencore’s cobalt marketing head, Nico Paraskevas said,
“RSBN plays a key role in advancing the sustainable partnership between the producers of commodities that will enable the transition to a low-carbon economy and key consumers around the world. We look forward to working with the network to further embed responsible sourcing good practice across the mineral supply chain.”
Cobalt is one of the major components used in electric vehicles, and recently, Fiat Chrysler has announced that it has also joined RSBN consortium to source cobalt, mica, and 3TG. The demand for EVs has risen globally, despite an overall slump in the automobile sector. Currently, EVs constitute about a mere 2.1%; however, the number is set to rise to a whopping 32%. This will result in the demand for cobalt, a vital component in building electric vehicles, and this will result in more and more use of blockchain to identify the element.
In an official press release, Glencore stated that RSBN, built on IBM Blockchain and Linux’s Hyperledger Fabric, will help improve transparency by providing a highly secure and immutable record which will be shared among the members of the consortium. The statement further added,
“Additionally, RCS Global Group assesses each participating entity both initially and annually against responsible sourcing requirements set by the Organization for Economic Cooperation and Development (OECD) and those enshrined by key industry bodies, including the Responsible Minerals Initiative (RMI).”