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10.01.2024

Impact Studies

Polestar & Circulor: Driving Transparency and Sustainability in the Automotive Industry

Embracing a Common Vision


Polestar, the Swedish electric vehicle manufacturer, and Circulor, the global leader in supply chain traceability, have been working together since 2021, driving responsibility and sustainability within the automotive industry.


Polestar's bold ambition to build a truly climate neutral car by 2030—the Polestar 0 project—demands an unprecedented level of transparency and to achieve this, supply chain traceability is key. For Circulor, partnering with pioneers like Polestar represented a pivotal opportunity to bring visibility to these complex industrial supply chains, aligning seamlessly with Polestar's strategy of climate neutrality, circularity, transparency, and inclusivity.


Addressing Challenges


Navigating the complexities of material traceability across complex global supply chains poses considerable challenges. Both partners share the determination to ensure ethical sourcing and set stringent sustainability goals, understanding the critical role of transparency in achieving these objectives.


Starting with cobalt traceability, the partnership has since expanded to include tracking and tracing mica, lithium, nickel, and graphite, as well as calculating and tracking the associated emissions from mining, processing, and manufacturing. Circulor's state-of-the-art blockchain-based traceability technology facilitates the seamless integration of real-time data from supply chains, empowering Polestar to make informed decisions and ensure supplier compliance with their sustainability pillars.


Outcomes:


  • Elevating Industry Standards on Transparency - The Polestar-Circulor collaboration has set an industry benchmark for supply chain transparency, by proving it is both possible, and necessary, to collect data on traced materials and associated carbon emissions, from manufacturing facilities, and across whole supply chains.
  • Leadership Position - Through partnering with Circulor, Polestar can offer transparency to customers, highlighting responsibility throughout the purchasing journey. Polestar has assumed a leadership position, gaining a competitive edge in the market, and providing data-backed proof of achieving their commitments. For example, in their 2022 sustainability report, Polestar announced a 6% reduction in emissions per car produced, and in 2023, they went even further—incorporating an additional 8% reduction in relative CO₂ -e.
  • Preparedness for Regulatory Evolution - The EU has recently passed the Battery Regulation, mandating a digital Battery Passport by 2027 for all large batteries placed on the market. Polestar's proactive initiatives, guided by Circulor's expertise, displays both alignment with growing customer demands for product transparency as well as emerging regulatory standards. This early adoption and collaboration positions Polestar favourably, exemplifying their commitment to compliance and sustainable practices.

Notable Engagements and Shared Success


In a notable display of their collaborative efforts, Circulor joined Polestar at TechBBQ, a prominent tech festival in Scandinavia. Ellen Carey, Chief External Affairs Officer for Circulor, participated in panels alongside Petra Pettersson, Polestar’s Transparency Lead, and Lisa Bolin, Sustainability Lead to discuss their joint endeavours in tracing high-risk materials for battery production in the Polestar 2 and Polestar 3.


The panel unpacked the challenges faced in ensuring that Polestar customers receive the products and information needed to satisfy growing demands for greater responsibility as well as the current progress towards battery passports, as required by the EU Battery Regulation. Polestar and Circulor have declared unwavering commitment to transparency and sustainability on a platform that resonated within both tech and automotive sectors.

This unprecedented level of traceability means we can promote sustainable and ethical practices in its supply chain,and provide better transparency for consumers.

Thomas Ingenlath, CEO at Polestar

Towards a Sustainable Future


Circulor's partnership with Polestar signifies a remarkable stride towards transforming and digitising automotive supply chains. Continuing their collaboration, both companies remain committed in their pursuit of proving sustainable practices by expanding traced materials, integrating comprehensive carbon tracking methodologies, and fortifying supply chain sustainability measures across multiple vehicle parts and models.


The automotive industry is becoming the first global showcase for digital product passports. Concerted endeavours, like that of Polestar and Circulor, continue to be instrumental in redefining industry standards, reducing environmental impact and accelerating progress toward more responsible, transparent, and circular automotive value chains.