Kulr Technology KULR, -5.78% is rolling out a new programmable blockchain-based supply chain management system. According to Intelex, the change will improve the overall integrity and efficiency of its customers’ operations. Kulr utilizes the increasing capabilities of blockchain technology to drastically improve, secure and transparent oversight of asset data. This centralized and standardized approach ensures traceability and accountability at every stage of a battery’s lifecycle.
This pilot comes at a time when the international battery market is experiencing greater pressure to establish deeper and clearer chains of product traceability. As a result, regulatory pressures are increasing. As an example, the European Union’s battery passport program is accelerating the need for verifiable and tamper-proof data management solutions. Kulr’s adoption of blockchain technology is a prudent move to stay ahead of these changing industry needs.
Blockchain Integration and Technology
Kulr’s blockchain-based secure data sharing solution relies on an ERC20 token Kulr built on Coinbase’s Base Layer 2 (L2) chain based on Ethereum. This infrastructure allows for secure, public, and decentralized management of data about our critical assets. The ultimate goal of the company is to help create a permanent, tamper-proof ledger of all testing and verification data. This repository will go a long way in keeping the downstream battery users informed and ensuring transparency and trust.
Blockchain technology can provide a very secure and decentralized way to manage and update this type of asset information, too. This ensures that all data related to the battery's lifecycle, from manufacturing to testing and deployment, is securely recorded and easily accessible to authorized parties. This increased traceability greatly minimizes the chances of counterfeit batteries being introduced into the supply chain. Consequently, it has a significant positive impact on the safety of all products.
Kulr’s approach is part of an emerging trend within the battery industry. Companies are looking more now than ever to blockchain to help alleviate the burdens of supply chain transparency and regulatory compliance. Blockchain technology’s permanent ledger provides trustworthy tracking and verification of batteries. This functionality will be indispensable for delivering upon the rigorous demands of the EU’s battery passport project.
European Market and Regulatory Drivers
In Europe, blockchain-based solutions have reached a fever pitch. Tightening environmental regulations and increasing pressure for supply chain visibility into the battery materials are fueling this shift. The European Union’s battery passport initiative, for example, mandates that all batteries sold in the EU must have a digital passport containing detailed information about their origin, composition, and environmental impact. Regulatory and public pressure is creating a growing demand for strong product tracking systems. These systems need to provide auditable information to the public and regulators alike.
Eviden, a company that is already working with Iota in France, is addressing this compelling need. They are accomplishing this with their new Eviden Digital Passport Solution (EDPS). EDPS is a plug-and-play, digital product passport system for electric vehicle batteries, powered with Iota’s open-source blockchain. The Iota Foundation, which is located in Switzerland, supplies the free and open-source underlying blockchain technology for this solution.
These efforts highlight how important blockchain technology is becoming. They can help guarantee accountability in the battery industry while reducing environmental harm and advancing equity. By leveraging blockchain technology, companies can demonstrate their commitment to responsible sourcing and manufacturing, which can enhance their reputation and competitiveness in the market.
Kulr's Strategic Vision
Kulr’s plan to integrate blockchain technology fits in neatly with the company’s long-term strategic direction statement of cutting-edge innovation and sustainability. Last year, the company made headlines as it implemented a new bitcoin-based treasury strategy. This new move further demonstrates its seriousness about adopting emerging technologies and continuing its robust pursuits of opportunities in the space of digital assets.
As CEO Michael Mo likes to remind everyone, this isn’t just a technology play. It’s aimed at building trust and accountability across the battery supply chain. By leveraging this technology, Kulr offers a true transparent and verifiable chain of documentation for battery performance and source. This gives buyers the knowledge to make better, more informed choices, and gives them confidence that their products are safe and dependable.
