Traceability—the ability to document the sources of raw materials and components—is becoming a critical concern in the battery field as regulators incorporate country-of-origin requirements into new programs such as the EU Battery Regulation and the US Clean Vehicle Tax Credit.
Now SQM (Sociedad Química y Minera), a major lithium producer, has announced a collaboration with supply chain traceability specialist Circulor to deliver a traceability solution for lithium. SQM says it will make supply chain documentation, from source to final product, available to automakers, including Volvo.
London-based Circulor “gives organizations full visibility of their supply chains.” Customers “can follow the physical flow of critical materials from extraction to final production.”
SQM and Circulor began working together in 2022 to establish end-to-end lithium supply chain traceability, responding to growing demand from downstream customers.
In addition to following SQM’s lithium from its sources in Chile to its end use in EV batteries, Circulor also provides dynamic tracking of Scope 1, 2 and 3 emissions produced by each supply chain participant.
“We are fully committed to responsible production, and this adds to our existing sustainability credentials, which include IRMA certification and online salar monitoring,” said Ricardo Ramos, CEO of SQM. “We have the lowest CO2 and water footprint of any lithium producer in the world, and Circulor’s technology will now enable us to demonstrate this at every stage of the value chain.”
“Collaboration is key to achieving true supply chain transparency”, said Circulor CEO Douglas Johnson-Poensgen. “We are proud to work with SQM in pioneering full lithium traceability as we work toward greater sustainability, resiliency, and making such information available to automakers and their end customers.”