* Blockchain maps cobalt from recycling plant to finishedcar
* DRC cobalt poses biggest challenge
* Volvo also joining DRC cobalt pilot
By Barbara Lewis
LONDON, Aug 2 (Reuters) - Volvo Cars, owned by China's Geely, has produced the first cars containing recycledcobalt mapped using a blockchain, and has joined a separateproject to monitor cobalt from Democratic Republic of Congo,Volvo said.
Carmakers are under pressure from customers and investors toprove electric vehicles do not rely on conflict minerals orchild labour.
They are exploring the usefulness of blockchain - thetechnology to create an immutable ledger first used forcryptocurrency - to improve accountability throughout supplychains.
In emailed comments on Friday, Volvo said it had completedthe first blockchain, using recycled cobalt in China.
"It tracked cobalt from a Chinese recycling plant to VolvoCars Zhejiang over a two-month period to June 27," Volvo said,adding its aim was "full transparency and traceability".
The blockchain has been developed by British blockchainspecialist Circulor using technology from U.S. company Oracleand is expected to be rolled out widely this year.Volvo declined to comment on the next steps.
The batteries are made by Contemporary Amperex Technology CoLtd (CATL).
Volvo also confirmed it was joining fellow automaker Ford, technology giant IBM, South Korean cathode makerLG Chem and China's Huayou Cobalt in aproject overseen by responsible-sourcing group RCS Global.
In an email, RCS Global said it was pleased Volvo wasjoining its efforts to achieve "quantifiable and continuous"improvement of supply chains.
Among battery minerals, cobalt is particularly challengingbecause around two thirds of all supplies are from DemocraticRepublic of Congo, where governance challenges are extreme.
Glencore, a producer of industrial-scale cobalt inCongo, has this year faced a series of problems, including anincursion of artisanal miners on its concession.
Those involved in tracking minerals say blockchain alone isnot the answer.
But they are testing how entering data from each stage of amineral's journey into a blockchain can improve accountabilityand even fend off disputes between, say, transportationcompanies and those using them.
"No technology can completely replace due diligence. What itwill do is improve enforcement of standards by highlighting whenthings are not working as intended," Doug Johnson-Poensgen, CEOof Circulor, told Reuters.
Oracle has provided technology for blockchain projects aimedat anything from certifying the origin of olive oil to reducingcosts by streamlining cross-border banking payments.
Apart from its work on cobalt, IBM has cooperated withretailers including Walmart to trace food through supplychains.(Reporting by Barbara Lewis; Editing by Dale Hudson)