LG Chem, Volkswagen partner on next-generation automotive materials
Summary
LG Chem signed a memorandum of understanding with Volkswagen Group to jointly develop next-generation and eco-friendly automotive materials. The agreement was signed recently at LG Twin Towers in Seoul’s Yeouido financial district, with executives from both companies attending. The two firms will cooperate on lighter vehicle materials, performance improvement, and research on new plastics and composite materials.
Key Facts
- The deal is a nonbinding memorandum of understanding, not a final contract.
- Volkswagen executives visited LG Chem’s customer solutions campus in Osan, Gyeonggi Province, and LG Science Park before the signing.
- LG Chem said Volkswagen may expand use of its post-consumer recycled plastics for car interiors and exteriors.
- LG Chem has an annual production capacity of 2.35 million metric tons of acrylonitrile butadiene styrene in Korea and abroad.
- LG Chem became the first in the industry to produce white-colored recycled acrylonitrile butadiene styrene in 2020.
Kim Sang-min, left, senior vice president and head of LG Chem's petrochemical business, and Stefan Gramse, executive vice president in charge of exterior parts procurement at Volkswagen Group, pose after signing a memorandum of understanding at the LG Twin Towers in Seoul to cooperate on developing next-generation and eco-friendly vehicle materials. Courtesy of LG Chem
LG Chem signed an agreement with Volkswagen Group to jointly develop next-generation and eco-friendly materials for vehicles, the Korean chemical maker said Monday.
The memorandum of understanding (MOU), a nonbinding agreement, was signed recently at the LG Twin Towers in Seoul's Yeouido financial district. Stefan Gramse, a Volkswagen Group executive vice president in charge of exterior parts procurement, and LG Chem executives from its petrochemicals business attended the signing.
Under the deal, the two companies will use LG Chem's acrylonitrile butadiene styrene and engineering plastics to make vehicles lighter, improve performance and develop new plastics and composite materials. Both are high-performance plastics known for impact strength, durability and ease of processing, and are widely used in home appliance casings and car interiors and exteriors.
Volkswagen will also consider wider use of LG Chem's post-consumer recycled plastics, made from products discarded by consumers, as well as lower-cost materials for the interiors and exteriors of its major car brands.
The companies agreed to share technology and market trends on mobility materials and to cooperate on research and development, including feasibility reviews for specific materials.
Before the signing, Volkswagen executives toured LG Chem's customer solutions campus in Osan, Gyeonggi Province, which showcases materials for recycling, electrification, high performance and cost efficiency. They also visited LG Science Park, the group's research complex 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 said in a statement.
LG Chem has an annual production capacity of 2.35 million metric tons of acrylonitrile butadiene styrene in Korea and abroad. Its lineup includes paintless and heat-resistant grades that can be used for parts such as side mirrors and radiator grilles.
In 2020, the company became the first in the industry to produce white-colored recycled acrylonitrile butadiene styrene. It is expanding its lineup of recycled materials for car interiors and exteriors.
This article was published with the assistance of generative AI and edited by The Korea Times.
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