LG Chem announced that it has entered into a partnership with Volkswagen Group to collaboratively create next-generation, environmentally friendly materials for automobiles.
The nonbinding agreement, known as the memorandum of understanding (MOU), was recently signed at the LG Twin Towers in the Yeouido financial district of Seoul.
Stefan Gramse, an executive vice president at Volkswagen Group responsible for exterior parts procurement, along with LG Chem executives from its petrochemicals division, were present at the signing.
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According to the agreement, both companies will utilize LG Chem's acrylonitrile butadiene styrene and engineering plastics to reduce vehicle weight, enhance performance, and create new plastics and composite materials. Both materials are high-performance plastics recognized for their impact resistance, longevity, and ease of fabrication, and are commonly utilized in housings for home appliances and in automotive interiors and exteriors.
Volkswagen will also explore broader utilization of LG Chem's post-consumer recycled plastics, derived from items thrown away by consumers, along with more affordable materials for the interiors and exteriors of its primary car brands.
The firms consented to exchange technology and market insights regarding mobility materials and to collaborate on research and development, which includes feasibility assessments for particular materials.
Prior to the signing, Volkswagen officials visited LG Chem's customer solutions campus located in Osan, Gyeonggi Province, highlighting materials for recycling, electrification, high performance, and cost effectiveness. They also toured LG Science Park, the consortium's research facility located in western Seoul.
"We expect this to be a meaningful starting point for a global carmaker and a materials company to create innovation in future mobility materials together," LG Chem says.
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LG Chem’s yearly production capability for acrylonitrile butadiene styrene stands at 2.35 million metric tons both in Korea and internationally. Its assortment features paintless and heat-resistant types suitable for components like side mirrors and radiator grilles. In 2020, the firm was the first in the sector to manufacture white recycled acrylonitrile butadiene styrene. It is broadening its range of recycled materials for vehicle interiors and exteriors.
LG Chem is redefining its business portfolio with four growth drivers as it addresses a sustained decline in the petrochemical sector and increasing demand fueled by artificial intelligence (AI) and electrification. The company has broadened its long-term growth strategy by incorporating high-value specialty materials into its current growth pillars — e-mobility battery materials, cutting-edge pharmaceuticals, and sustainability — with the goal of increasing its revenue from these four growth sectors by over three times by 2030. The four enterprises produced 5.8 trillion won, representing 22 percent of the total revenue for the company in 2024.
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The initial growth pillar focuses on battery and electronic materials as demand increases in electric vehicles (EVs), semiconductors, and AI-related uses. In battery materials, LG Chem emphasizes cutting-edge cathode technologies, such as high-voltage mid-nickel cathodes, lithium manganese-rich cathodes, and lithium iron phosphate materials, while also working on next-generation sodium-ion battery materials.