LG Chem has teamed up with a global automaker to target the automotive materials market. LG Chem said on Sept. 28 it signed a memorandum of understanding with Volkswagen Group at LG Twin Towers in Yeouido, Seoul, to develop and expand the application of next-generation and eco-friendly mobility materials.

The companies will use LG Chem’s high value-added synthetic resin ABS and engineering plastic EP to pursue lighter vehicles and improved performance. They will also jointly develop next-generation plastics and composite materials. ABS and EP are mainly used for exterior materials of home appliances and interior and exterior automotive parts due to high impact strength, durability and processability. They will also review ways to broaden the use of recycled materials made by reprocessing products used by consumers and materials aimed at strengthening cost competitiveness for interior and exterior parts of major Volkswagen Group brands.

The agreement reflects aligned interests between the two companies. LG Chem is seeking to broaden the base of the market for high value-added and eco-friendly automotive materials. Volkswagen Group aims to build a sustainable raw material supply chain spanning from materials to finished vehicles. The companies also agreed to share technology trends in next-generation mobility materials and global market developments, and to cooperate on R&D such as reviewing the feasibility of applying specific materials.

Volkswagen Group executives visited the Osan CS Campus ahead of the agreement. They attended an exhibition booth tour and a seminar introducing a circular economy based on recycled materials, electrification, high functionality and solutions to strengthen cost competitiveness. They then visited LG Sciencepark in Magok to review LG Group’s future growth technologies and R&D capabilities in mobility and discuss ways to expand cooperation.

LG Chem’s ABS production capacity totals 2.35 million tons per year at home and abroad. It also has high-gloss and high-heat-resistant products that can be directly applied to side mirrors and radiator grilles, and a lineup of non-paint products that do not require a painting process. In 2020, it became the first in the industry to succeed in producing white recycled ABS. The company said it is expanding its portfolio of recycled materials for automotive interior and exterior parts and is broadening cooperation with global automakers with products that help reduce weight and cut costs, including non-paint ASA.

Kim Sang-min (김상민), head of LG Chem’s petrochemicals business division, said he expects the agreement to be a meaningful starting point for global automakers and materials companies to jointly drive innovation in future mobility materials. He said the company will work with customers to create a milestone for sustainable growth based on its technology and competitiveness in high value-added and eco-friendly materials.