LG Chem and the Volkswagen Group have signed a memorandum of understanding (MoU) to collaborate on developing and expanding the application of next-generation, eco-friendly mobility materials.

Kim Sangmin (left), Senior Vice President and Head of LG Chem’s Petrochemicals Company, and Stefan Gramse, Executive Vice President and Head of the Exterior Materials Procurement Group at the Volkswagen Group, at the MoU signing ceremony at the LG Twin Towers in Yeouido, South Korea.

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 post-consumer recycled (PCR) materials in the interior and exterior components of the Volkswagen Group’s major automotive brands.

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.

ABS and PCR solutions from LG Chem

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, offering 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 and achieve vehicle lightweighting.