LG Chem and Volkswagen Formed Materials Partnership

The companies signed an agreement to develop sustainable composite materials for future vehicle production.

Updated on Sept. 28, 2026 in Electric Vehicles

Close-up of precise industrial plastic components in a modern, brightly lit manufacturing facility, highlighting sustainable automotive materials.
LG Chem and Volkswagen have signed a memorandum of understanding to collaborate on the development of specialized sustainable composite materials for future vehicle production. AI Illustration. Upload story photo >

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LG Chem and Volkswagen have signed a memorandum of understanding to collaborate on the development of specialized plastics and composite materials. This partnership aims to utilize advanced components to reduce overall vehicle weight and improve performance.

Why it matters

By integrating high-performance materials, manufacturers aim to optimize vehicle efficiency and range. This collaboration specifically targets the increased use of recycled content to support sustainable production goals.

LG Chem maintains an annual acrylonitrile butadiene styrene (ABS) production capacity of 2.35 million metric tons. The company previously began producing white-colored post-consumer recycled ABS in 2020.

The players

LG Chem

A South Korean chemical company that specializes in manufacturing petrochemicals, advanced materials, and energy solutions.

Volkswagen

A German multinational automotive manufacturer that is one of the largest vehicle producers in the world.

The details

The collaboration centers on LG Chem providing acrylonitrile butadiene styrene and various engineering plastics to Volkswagen. These materials will incorporate post-consumer recycled content to enhance the environmental profile of new automotive components.

Timeline

  1. In 2020, LG Chem began production of white-colored PCR ABS.

  2. On September 28, 2026, LG Chem announced the partnership with Volkswagen.

Roadmap

This partnership reflects the broader automotive industry shift toward replacing virgin plastics with sustainable alternatives to meet climate targets. It positions LG Chem as a key supplier for major automakers seeking to integrate recycled materials into their global supply chains.

Vehicle owners may see increased use of high-performance recycled plastics in newer models, which are engineered to be lighter and more efficient. These materials are intended to lower vehicle mass without compromising the safety or durability of the components.

The takeaway

Automakers are increasingly turning to chemical suppliers to solve the weight-to-performance ratio using advanced recycled composites. This trend suggests that future vehicles will rely more heavily on specialized material science to maintain efficiency standards.

Further reading

For more on how manufacturers are evolving, see our coverage of Electric Vehicles.

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Do you trust that automotive and chemical company partnerships result in more sustainable and reliable vehicles?