Eric Onstad

LONDON (Reuters), – A EU-funded blockchain certification program is in development for rare earths. Automakers want to prove that the materials used for making magnets for electric vehicle (EVs) do not contribute to pollution.

Two of the organisers said that the system would set international standards and provide confidence for consumers who demand sustainable products. This was before Reuters made an official announcement Tuesday.

The Circular Systems for Assessing Rare Earth Sustainability, or CSyARES, is scheduled to be completed in approximately three years according to the Rare Earth Industry Association and Dutch supply chain traceability firm Circularise.

EIT Raw Materials funds the EU project. It is an organization that implements the EU Action Plan 2020, which aims to secure crucial minerals for the bloc. It was not known how much.

It is part Europe’s effort to increase domestic production of rare earth magnets super strong for EVs.

Teresa Oberhauser from Circularise said that the blockchain tokens will be used to track rare earths. They can also act as digital passports throughout the complicated supply chain, which includes mining and end-of life.

REIA, Circularise and REIA form part of CSyARES. BEC Germany and Grundfos Denmark are the three other partners. Minviro is based in London.

Existing certificates of sustainability for mining products, including rare earths, are issued by auditing firms.

Oberhauser stated that it is very laborious. Some of these certificates are even available on Ebay (NASDAQ):, but it isn’t really trusted.”

She stated that once a token has been created to represent a specific amount of sustainably-produced mineral, it can’t be altered on blockchain.

The rare earths, which are 17 minerals that have a similarity to each other, can be found in large quantities in the Earth’s crust. They are used as motors for electric vehicles (EVs) and wind turbine generators.

The complex process of processing rare earth ore involves solvents and other toxic substances that must be properly disposed.

The United States and Europe are looking to get rid of China’s dependence, as rare earths production will spread across the globe. China supplies around 90% of the world’s rare Earths.

Because 98% of EU’s permanent magnets are also crucial for defense sector use, the EU made rare earths a priority.

REIA is also a member of the Association of Chinese Rare Earths Industries.

REIA answered a question regarding China’s use of CSyARES.

Nabeel Manceri, secretary general at REIA said that several automakers as well as their suppliers intend to utilize the system after it has been fully functional for three years.

Because REIA had entered into confidentiality agreements with the companies, he declined to give his name.

Volkswagen’s Porsche (DE) previously used Circularise for certifying plastics tractability. According to Circularise, the website. Volkswagen refused to confirm whether or not it agreed to the CSyARES program.