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Kim Sang-min, Executive Vice President and Head of Petrochemicals at LG Chem (left), and Stefan Gramse, Executive Vice President and Head of Group Procurement for Exterior Components at Volkswagen Group, pose for a commemorative photo after signing a memorandum of understanding (MOU). / LG Chem

LG Chem will co-develop next-generation materials essential for automotive lightweighting and eco-friendly transition with Volkswagen Group. The move aims to broaden automotive demand for its flagship high-value products—acrylonitrile butadiene styrene (ABS) and engineering plastics (EP)—while also pursuing the application of recycled materials across Volkswagen Group's major vehicle brands.

On the 28th, LG Chem announced that it signed a memorandum of understanding (MOU) with Volkswagen Group for the development and expanded application of next-generation, eco-friendly mobility materials.

The two companies will explore developing next-generation plastics and composite materials required for vehicle lightweighting and performance enhancement, utilizing LG Chem's ABS and EP. ABS and EP are high-performance plastics featuring high impact strength, durability, and processability, widely used in automotive interior and exterior components. The partners will also conduct research and development collaboration to share materials technologies, track global market trends, and evaluate practical on-vehicle feasibility.

The collaboration will also expand the supply of eco-friendly materials. LG Chem is exploring ways to apply Post-Consumer Recycled (PCR) materials derived from plastic waste, along with cost-competitive solutions, to interior and exterior components across Volkswagen Group's key vehicle brands. After becoming the first in the industry to successfully produce white PCR ABS in 2020, LG Chem has continued expanding its recycled materials portfolio for automotive components.

LG Chem holds an annual ABS production capacity of 2.35 million metric tons across its domestic and overseas operations. Its portfolio includes high-gloss, high-heat ABS suitable for side mirrors and radiator grilles, as well as paintless products that eliminate separate painting steps. In response to industry demand for lightweighting and cost reduction, the company focuses on expanding conventional petrochemicals like ABS into high-value automotive solutions.

Volkswagen Group executives visited LG Chem's Osan Customer Solution (CS) Campus to examine materials centered on PCR-driven circular economy, electrification, high functionality, and enhanced cost competitiveness. They also visited LG Sciencepark in Magok, Seoul, where they reviewed LG Group's mobility R&D capabilities and discussed further avenues for cooperation.

Kim Sang-min, Executive Vice President and Head of Petrochemicals at LG Chem, said, "We expect this to mark a meaningful starting point where a global automaker and a materials company jointly shape material innovation for future mobility. Grounded in our technological prowess and competitiveness in high-value, eco-friendly materials, we will set milestones for sustainable growth together with our customers."

                                                                                                           Lee Seo-yeon