Blockchain-enabled sustainability of Li-ion batteries supply chain: tracking and sourcing eco-friendly materials

The urgency to combat climate change and reduce greenhouse gas emissions has led to increased global demand for Lithium-ion (Li-ion) batteries. Such batteries are widely used in portable electronics and electric vehicles. However, their adoption encounters challenges related to mining ethics, supply chain transparency, sustainability, and waste management. This paper proposes a blockchain-based solution that addresses these challenges in the Li-ion battery supply chain. Using the ERC-721 standard for Non-fungible tokens (NFTs), we tokenize all items/materials in the supply chain, ensuring data management, transparency, and ownership control. We integrate the Ethereum blockchain with the Interplanetary File System (IPFS) to handle NFT metadata and large-sized files, reducing storage costs and network congestion. We develop ten smart contracts (SCs) to facilitate various Li-ion supply chain functionalities, managing items/materials data and ownership. By leveraging NFTs, our solution promotes circular economy principles by facilitating secondary market trading, asset reuse, and sustainable recycling practices. We introduce a structured decision framework that empowers stakeholders to navigate operational and ethical challenges effectively. The effectiveness and practicality of the solution are demonstrated through system architecture, sequence diagrams, algorithms, and testing results. Furthermore, we assess our proposed solution’s affordability, efficiency, security, and generalizability across different industries.