MINESPIDER: BUILDING RESPONSIBLE BATTERY SUPPLY CHAINS
WITH BLOCKCHAIN CASE STUDY SOLUTION
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SYNOPSIS
Managing the supply chain of critical minerals has emerged as a significant concern for companies, and it raises
business, ethical, regulatory, and security issues around the globe. The concern about mineral supply chains
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becomes particularly pronounced for companies involved in producing and selling lithium-ion (Li-ion)
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rechargeable batteries because conditions for mining cobalt, a vital mineral used in these batteries, can be highly
hazardous to labourers in Central Africa. On the one hand, the demand for cobalt has grown, but on the other
hand, companies, consumers, investors, and governments seek traceable, transparent, and “clean” supply chains
for critical minerals. Minespider, a start-up based in Berlin, developed a web-based platform using blockchain
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technology, a battery passport, and a comprehensive material information repository to help businesses address
supply chain issues. In 2017, Minespider launched its bespoke blockchain platform, which was designed
So
expressly for the mineral supply chain, and set about achieving its goals: pinpointing the right customer segments
to target and developing effective strategies to position Minespider in the market, and maximizing the impact of
The Case Solution Starts From page 4
,ASSIGNMENT QUESTIONS
1. What issues do companies consider when procuring products that incorporate Li-ion rechargeable
battery technologies? Are the manufacturers’ concerns regarding Li-ion battery technologies important
to consumers? Explain your answer.
2. How can a blockchain application assist companies with managing their supply chain?
3. What are the advantages and disadvantages of implementing a blockchain solution such as
Minespider’s at various stages in the mineral supply chain?
4. Which companies compete with Minespider in the blockchain application sector, and how do these
competitors create challenges and opportunities for Minespider's leadership?
5. Which supply chain tier(s) may be the best target markets for Minespider? Why?
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ANALYSIS
1. What issues do companies consider when procuring products that incorporate Li-ion
rechargeable battery technologies? Are the manufacturers’ concerns regarding Li-ion battery
technologies important to consumers? Explain your answer.
When companies source either Li-ion battery technology or mineral components, they have various
concerns encompassing factors such as end-product safety, end-product performance, supply chain
disruptions caused by material availability, adverse publicity and legal actions related to human rights and
environmental issues, and compliance with government regulations. In Central Africa, tracing the origin of
cobalt ore refined into cobalt sulphate for Li-ion batteries poses challenges. The ore can come from multiple
mining concessions (permits, licences, or other contracts) (see Exhibit 2 in the case). Large-scale mining
(LSM) assets can sell ore directly to processors or involve artisanal and small-scale miners (ASMs), who
The Case Solution Starts From page 4
, EXHIBIT 1: CUSTOMER PREFERENCES DRIVING ELECTRIC VEHICLE PURCHASE INTENTION
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The Case Solution Starts From page 4
WITH BLOCKCHAIN CASE STUDY SOLUTION
e
pl
m
Sa
SYNOPSIS
Managing the supply chain of critical minerals has emerged as a significant concern for companies, and it raises
business, ethical, regulatory, and security issues around the globe. The concern about mineral supply chains
n
becomes particularly pronounced for companies involved in producing and selling lithium-ion (Li-ion)
tio
rechargeable batteries because conditions for mining cobalt, a vital mineral used in these batteries, can be highly
hazardous to labourers in Central Africa. On the one hand, the demand for cobalt has grown, but on the other
hand, companies, consumers, investors, and governments seek traceable, transparent, and “clean” supply chains
for critical minerals. Minespider, a start-up based in Berlin, developed a web-based platform using blockchain
lu
technology, a battery passport, and a comprehensive material information repository to help businesses address
supply chain issues. In 2017, Minespider launched its bespoke blockchain platform, which was designed
So
expressly for the mineral supply chain, and set about achieving its goals: pinpointing the right customer segments
to target and developing effective strategies to position Minespider in the market, and maximizing the impact of
The Case Solution Starts From page 4
,ASSIGNMENT QUESTIONS
1. What issues do companies consider when procuring products that incorporate Li-ion rechargeable
battery technologies? Are the manufacturers’ concerns regarding Li-ion battery technologies important
to consumers? Explain your answer.
2. How can a blockchain application assist companies with managing their supply chain?
3. What are the advantages and disadvantages of implementing a blockchain solution such as
Minespider’s at various stages in the mineral supply chain?
4. Which companies compete with Minespider in the blockchain application sector, and how do these
competitors create challenges and opportunities for Minespider's leadership?
5. Which supply chain tier(s) may be the best target markets for Minespider? Why?
e
pl
m
Sa
n
tio
lu
So
ANALYSIS
1. What issues do companies consider when procuring products that incorporate Li-ion
rechargeable battery technologies? Are the manufacturers’ concerns regarding Li-ion battery
technologies important to consumers? Explain your answer.
When companies source either Li-ion battery technology or mineral components, they have various
concerns encompassing factors such as end-product safety, end-product performance, supply chain
disruptions caused by material availability, adverse publicity and legal actions related to human rights and
environmental issues, and compliance with government regulations. In Central Africa, tracing the origin of
cobalt ore refined into cobalt sulphate for Li-ion batteries poses challenges. The ore can come from multiple
mining concessions (permits, licences, or other contracts) (see Exhibit 2 in the case). Large-scale mining
(LSM) assets can sell ore directly to processors or involve artisanal and small-scale miners (ASMs), who
The Case Solution Starts From page 4
, EXHIBIT 1: CUSTOMER PREFERENCES DRIVING ELECTRIC VEHICLE PURCHASE INTENTION
e
pl
m
Sa
n
tio
lu
So
The Case Solution Starts From page 4
