Minespider - Experts in Traceability

Circular supply chains are revolutionizing how we think about resources and production. Unlike traditional linear models, these systems aim to reduce how much is needed from the planet, then to keep materials in use for as long as possible.

Circular supply chains aim to use resources more efficiently by reducing the input of virgin materials and increasing the use of recycled or renewable materials. This involves optimizing resource use at every stage of the product life cycle.

A circular supply chain is vital for the lithium-ion battery industry, especially in Europe. By promoting a circular economy through the EU Battery Regulation, advancements in recycling technologies are being fostered. Advanced recycling methods efficiently extract valuable materials from spent batteries, reducing the reliance on virgin mining.

Collaboration among OEMs, suppliers, recyclers, and policymakers is critical to this system, enabling closed-loop practices such as take-back programs, data sharing for traceability, and regulatory frameworks that support sustainability. In essence, circularity for the battery supply chain is about transforming our business models and supply chain practices to prioritize sustainability at every step.

In the year ahead, I see a rationalisation of traceability solutions, with consolidation driven by both the commercial, social and environmental value that each provider can deliver as well as the degree of interoperability that is achievable. I also see a lot of efforts to standardise data governance to facilitate data sharing across jurisdictional and corporate boundaries, in the interest of the common good.

While companies and governments are increasingly addressing traceability and responsible sourcing aspects of their vital supply chains, there remain significant challenges. A toolbox of metrics, standards, certifications, and regulations, backed by cutting-edge technologies like blockchain and IoT, is deployed to tackle these hurdles. Streamlining these measures is in progress to facilitate their implementation and boost their impact.

Naturally, the increase in reliance on new technologies will bring a "trend" in investing in and increasing cyber security to identify and address new potential weak spots in the supply chain. It will be interesting to see how the stakeholders approach these latest developments in 2024.

With market restrictions being placed on material supply it is very likely that the transparency transition will be led by suppliers of raw materials rather than downstream manufacturers. To access G7 markets, suppliers of key materials will adopt traceability systems voluntarily, in order to front-load transparency data and retain preferred supplier status with downstream clients.

In my opinion, sustainability initiatives will and should be perceived as investments in the future. Right now we are implementing the largest blockchain traceability project in tin on our San Rafael mine in Peru. We expect other minerals producers to follow, and traceability to become a more common practice for all minerals, especially the critical ones.