Tesla Inc (NASDAQ:TSLA) revealed that it was working with a consortium of cobalt producers to develop a blockchain platform to trace the commodity from “mine to the battery.”
What Occurred: The Elon Musk-led firm stated in its recently-released 2020 Impression Report that it’s working the Democratic Republic of Congo-centric Re|Supply consortium — made up of China Molybdenum Co., Ltd (OTC:CMCLF), Eurasian Assets Group, and Glencore plc (OTC:GLNCY) (OTC:GLCNF) — on the blockchain platform.
The platform goals to create a “clear, open and world registry” that can monitor cobalt to make sure its sustainability and assist in the monitoring of its provenance on the unit stage.
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“The system will enable customers to completely monitor cobalt from the mine to the battery with assurance that the quantity of traceable materials is known in addition to the sustainability efforts of upstream suppliers,” stated Tesla.
The electrical automobile maker stated it’s taking part within the pilot of the platform, which is scheduled to run till the top of 2021. Full rollout is anticipated in 2022.
Why It Issues: Tesla revealed that the pilot is being executed in “actual working circumstances,” from cobalt manufacturing websites within the DRC all over to electrical automobile manufacturing.
Cobalt is a crucial ingredient within the manufacturing of lithium-ion batteries however its extraction within the DRC usually entails baby labor.
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Blockchain, the identical expertise that powers cryptocurrencies like Bitcoin (CRYPTO: BTC) and Dogecoin (CRYPTO: DOGE), is akin to an open ledger that can be utilized to extend transparency within the cobalt provide chain.
Musk usually tweets on cryptocurrencies and his social media commentary has at instances moved the costs of both Bitcoin and Dogecoin.
Value Motion: On Tuesday, Tesla shares closed 2.98% decrease at $665.71 and fell nearly 0.4% within the after-hours buying and selling.