SEO SUBHEADING: The partnership will explore recycled plastics, lightweight materials and next-generation composites for automotive applications.
LG Chem and Volkswagen Group have signed a memorandum of understanding (MoU) to collaborate on the development and expanded use of next-generation, environmentally friendly materials for future vehicles. The partnership combines LG Chem’s materials expertise with Volkswagen’s automotive capabilities.
Under the agreement, the companies will explore next-generation plastics and composite materials designed to reduce vehicle weight while maintaining performance. The collaboration will focus on LG Chem’s acrylonitrile butadiene styrene (ABS) and engineering plastics (EP), materials already used in automotive interior and exterior applications.
A major area of cooperation will be the potential expansion of post-consumer recycled (PCR) materials in vehicle components. LG Chem and Volkswagen will examine applications for recycled materials and cost-efficient material solutions across interior and exterior components used by Volkswagen Group’s automotive brands.
The companies will also conduct feasibility studies for specific applications and exchange information on technology developments and global market trends related to future mobility materials. This work is intended to identify opportunities where advanced plastics can combine lightweighting, durability and sustainability requirements.
LG Chem has an annual ABS production capacity of 2.35 million tonnes across its domestic and international operations. The company has also developed a portfolio of ABS materials for applications including automotive components such as side mirrors and radiator grilles.
The Korean chemical producer has been expanding its recycled-material portfolio for several years. Its PCR products include recycled ABS, polycarbonate, polyethylene, polypropylene and PVC, with the company developing both mechanical and chemical recycling technologies.
LG Chem has also commercialised white PCR-ABS, allowing recycled ABS to be used in applications where lighter colours are required. According to the company’s sustainability reporting, sales of white PCR-ABS reached 9,389 tonnes in 2024, an increase of approximately 80% from the previous year.
The partnership comes as automotive manufacturers and material suppliers continue developing greater use of circular materials. Volkswagen Group has previously set a voluntary ambition for 40% of materials used in its products to come from circular materials by 2040, excluding China, for its group-wide sustainability strategy.
For LG Chem, working directly with a global automotive manufacturer provides an opportunity to explore new applications for recycled and high-performance plastics. For Volkswagen, collaboration with a major materials producer can support the development and validation of material solutions for future vehicle programmes.
The companies’ work will cover both material development and application feasibility, meaning the current agreement is focused on cooperation and evaluation rather than announcing a specific commercial vehicle component or production programme.
The collaboration highlights the growing role of recycled plastics in automotive material development. As automakers seek lighter vehicles and greater use of circular materials, suppliers are developing recycled polymers that can meet demanding requirements for strength, durability, appearance and processing.
LG Chem and Volkswagen will continue examining potential applications and technologies as part of their cooperation, with the partnership focused on developing material solutions for the next generation of mobility.