LG Chem, one of the world’s biggest lithium-ion battery manufacturers, said it would produce a blockchain-powered supply chain traceability platform for its battery products.
The firm, part of the full LG Group of companies, said that it spent $92 million in a sustainability-based R&D drive last year – and said that the new battery platform is one of the fruits of that venture.
Per Updown News, LG Chem affirmed that it funded more than 4% of its sales revenue for 2019 in a companywide sustainability initiative that has concentrated on “mid- to long-term R&D projects, more particularly in the battery and bio sectors.”
LG Chem is one of the top five lithium-ion battery manufacturers and is arguably the LG Group’s chief money-spinner. As per Research and Markets published last week, the global lithium-ion battery market was valued at USD 36.7bn the previous year. It is anticipated to reach USD 129bn by 2027, at a combined annual growth rate of 18% from 2020 to 2027.
Analysts say that a spike in electric vehicles and smartphone sales is anticipated to drive the growth.
Nevertheless, the lithium-ion generating sector has come under fire from activists in recent years, with reports comparing the industry with widespread human rights abuses.
Last year, Amnesty stated that the industry was “linked to human rights abuses including child labor in the Democratic Republic of Congo (DRC), and environmental risks which could undermine their green potential.”
The organization called for battery makers to make “revolutionary changes” to the way they function.
LG Chem said it would use the platform to pursue and maintain the supply chain of raw materials utilized in battery manufacture.
The firm said that sustainability during the entire supply chain was the only way for companies to support the industry.