LG Chem reshapes portfolio amid petrochemical downturn
LG Chem researcher tests materials. Courtesy of LG Chem
LG Chem is reshaping its business portfolio around four growth engines as it responds to a prolonged downturn in the petrochemical industry and rising demand driven by artificial intelligence (AI) and electrification.
The company has expanded its long-term growth strategy by adding high-value specialty materials to its existing growth pillars — battery materials for e-mobility, innovative pharmaceuticals and sustainability — aiming to more than triple its revenue from the four growth businesses by 2030. The four businesses generated 5.8 trillion won, accounting for 22 percent of the company's total revenue in 2024.
The first growth pillar centers on battery and electronic materials as demand grows across electric vehicles (EVs), semiconductors and AI-related applications.
In battery materials, LG Chem is focusing on advanced cathode technologies, including high-voltage mid-nickel cathodes, lithium manganese-rich cathodes and lithium iron phosphate materials, while also developing next-generation materials for sodium-ion batteries.
The company is also expanding semiconductor packaging materials, thermal management products and functional adhesives for automotive electronics, aiming to diversify its materials portfolio across AI chips, mobility and display applications.
It is also optimizing production through new processing technologies, metal recycling and its Tennessee manufacturing base in North America.
In pharmaceuticals, LG Chem is focusing on oncology as a long-term growth area while expanding its drug pipeline.
The company is advancing clinical programs, including late-stage head and neck cancer studies and early-stage immuno-oncology candidates, while developing next-generation therapies.
It is also expanding into related therapeutic areas, such as women's health, osteoporosis and pain management to build on existing products. Overseas, the company is reinforcing its oncology operations through its U.S. subsidiary AVEO and partnerships in China to support drug development and commercialization.
The third pillar focuses on sustainability, with LG Chem expanding its recycled and bio-based materials businesses amid stricter environmental regulations and growing demand for lower-carbon products.
The company is expanding its use of post-consumer recycled plastics and bio-circular balanced materials made from renewable feedstocks.
It is also investing in hydrotreated vegetable oil, sustainable aviation fuel and carbon utilization technologies, while strengthening life-cycle assessment capabilities and sustainability certification to support customers' carbon reduction targets.
The fourth pillar centers on specialty chemicals as LG Chem seeks to shift its petrochemical business toward higher-value applications.
The company is expanding premium acrylonitrile butadiene styrene resins for automotive, electronics and medical uses, advanced synthetic rubber for EV tires and high-purity isopropyl alcohol for semiconductor manufacturing.
It is also developing specialty products including high-performance polyvinyl chloride for electric vehicle charging cables, aerogel insulation materials and styrene-acrylonitrile resins for cosmetic packaging, as it seeks to shift its petrochemical portfolio toward more differentiated products. (Advertorial)