MOU LG Chem to Develop Next-Generation, Eco-Friendly Mobility Materials

Under a MOU signed between LG Chem and the Volkswagen Group, LG Chem will develop and expand the application of next-generation, eco-friendly mobility materials.

Seoul/South Korea – LG Chem is cooperating with the Volkswagen Group to explore next-generation materials for future mobility. LG Chem announced that it had recently signed a memorandum of understanding (MOU) at the LG Twin Towers in Yeouido to “develop and expand the application of next-generation, eco-friendly mobility materials.” The signing ceremony was attended by executives from both companies, including Stefan Gramse, Executive Vice President and Head of the Exterior Materials Procurement Group at the Volkswagen Group, and Kim Sangmin, Senior Vice President and Head of LG Chem’s Petrochemicals Company.

Under this agreement, the two companies will collaborate on developing next-generation plastics and composite materials, as well as on reducing vehicle weight and improving performance, using LG Chem’s ABS (high-value-added synthetic resin) and EP (engineering plastics). ABS and EP are high-performance plastics with excellent impact strength, durability, and processability, and are widely used primarily in the exterior components of home appliances and in automotive interior and exterior parts.

In addition, LG Chem plans to strengthen its competitiveness in sustainable materials for future vehicles by exploring ways to expand the use of its PCR (Post-Consumer Recycled) materials and cost-efficient material solutions in the interior and exterior components of the Volkswagen Group’s major automotive brands.

LG Chem has a total annual ABS production capacity of 2.35 million metric tons both domestically and internationally, and maintains a portfolio of ABS products, including high-gloss, high-heat-resistant, and paintless varieties, that can be immediately applied to customer-specific applications such as side mirrors and radiator grilles.

In 2020, LG Chem became the first in the industry to successfully produce white-colored post-consumer recycled (PCR) ABS and is currently continuing to expand its portfolio of PCR materials for automotive interior and exterior components. In addition, the company is strengthening its partnerships with global automakers through a variety of automotive solutions, such as paintless ASA and high-gloss, high-heat-resistant ABS, that help customers improve manufacturing efficiency, reduce costs, and achieve vehicle lightweighting.

The two companies agreed to actively collaborate on various research and development initiatives, including feasibility studies for the application of specific materials, while also sharing information on technology trends and global market developments related to next-generation mobility materials.

The agreement reflects a shared interest in exploring innovative and sustainable material solutions for future mobility applications. LG Chem aims to expand the market for high-value-added, eco-friendly automotive materials such as ABS and EP.

Volkswagen Group executives attended a tour of exhibition booths and seminar sessions at the Osan CS (Customer Solution) Campus, South Korea, where they were introduced to solutions focused on a PCR-based circular economy, electrification, high performance, and enhanced cost competitiveness. They also visited the LG Science Park in Magok to examine LG Group’s future growth technologies and R&D capabilities in the mobility sector and discussed ways to expand their collaboration.

During the MOU signing ceremony that followed, representatives from both companies participated in a special ceremony in which they each fitted a piece of a puzzle into place. The puzzle symbolized the combination of both companies’ technologies and capabilities and the two companies coming together to shape the future of mobility, serving as a symbolic expression of their commitment to creating sustainable customer value through joint innovation.

Kim Sangmin, Senior Vice President and Head of LG Chem’s Petrochemicals Company, said: “We expect this to be a meaningful starting point for global automakers and materials companies to jointly drive innovation in future mobility materials. Based on our technological capabilities and competitiveness in the field of high-value-added, eco-friendly materials, we will work with our customers to set new milestones for sustainable growth.”

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