LG Chem brings 2.35 million tonnes of annual ABS capacity to a new materials agreement with the Volkswagen Group, signed as a memorandum of understanding covering next-generation lightweight and sustainable mobility materials.

The South Korean chemicals firm and the German automotive group will jointly develop advanced plastics and composite materials under the deal. The stated aim: cut vehicle weight and improve performance using LG Chem's acrylonitrile butadiene styrene (ABS) and engineering plastics (EP).

LG Chem describes both material families as high-performance plastics with excellent impact strength, durability and processability. These grades already serve as outer casings for home appliances and as interior and exterior automotive parts, which gives the partnership an existing industrial base to build on.

Recycled content on the agenda

Beyond virgin engineering resins, LG Chem intends to explore wider use of its post-consumer recycled (PCR) materials, along with cost-efficient material options, in interior and exterior components across Volkswagen Group's main car brands. If those applications reach series production, PCR content in VW-brand vehicles would shift from niche trim pieces toward structural-adjacent exterior parts — a meaningful step for OEM recycling targets.

The two companies have agreed to pursue several research and development activities, including feasibility studies on applying specific materials. They will also exchange information on technology trends and global market developments in next-generation mobility materials.

An MoU is an intention, not a confirmed program. No volumes, launch dates, named vehicle platforms or plant locations appear in the agreement as announced. The feasibility studies will determine whether LG Chem's ABS and EP grades move from qualification into Volkswagen sourcing decisions.

Supplier positioning

LG Chem's combined ABS production capacity across its domestic and overseas operations stands at 2.35 million tonnes per annum. Its ABS range includes high-gloss, high-heat-resistant and paintless grades that can be used directly for customer-specific applications such as side mirrors and radiator grilles.

The company also supplies automotive products such as paintless acrylonitrile styrene acrylate (ASA) and high-gloss, high-heat-resistant ABS, which it says "help customers improve manufacturing efficiency, reduce costs and achieve vehicle lightweighting." Paintless grades eliminate a coating step in the production process, which is where the cost and efficiency claims rest — supplier assertions that Volkswagen's own production data would need to confirm as programs advance.

Kim Sangmin, senior vice president and head of LG Chem's petrochemicals company, framed the deal as broader than a single supply relationship.

"We expect this to be a meaningful starting point for global automakers and materials companies to jointly drive innovation in future mobility materials," he said. "Based on our technological capabilities and competitiveness in the field of high-value-added, eco-friendly materials, we will work with our customers to set new milestones for sustainable growth."

Battery connection

The Volkswagen agreement is not LG Chem's only recent materials move tied to future mobility. Earlier this month, LG Chem's unit LG Energy Solution announced it had developed a key technology with Seoul National University to significantly improve the stability of next-generation lithium manganese-rich (LMR) batteries. The development, according to the company, paves the way for commercialising LMR materials in large-format cells used in electric vehicles.

Together, the two announcements show the Korean group positioning across both the structural-materials and battery-chemistry sides of vehicle lightweighting and electrification.

What to watch: the outcome of the feasibility studies — specifically which VW-brand interior and exterior parts move to LG Chem ABS, EP or PCR grades, and whether any application survives qualification into a named platform. The first confirmed sourcing decision, rather than further MoUs, will mark the real milestone. On the battery side, watch for LMR large-format cell commercialisation timing out of LG Energy Solution.