From birth to growth and living a healthy life, every person requires close care and continuous support. LG Chem provides various Life Science solutions to assist the beginning and growth of a life. Today, we introduce how LG Chem’s innovative Life Science products, such as infertility treatment, infant vaccines, and growth hormones, contribute to the healthy life of humanity.

Giving hope to infertile couples, Follitrope

The global infertility population is on the increase. According to WHO’s <Infertility Prevalence Estimates, 1990-2021> announced in April 2023, about 17.5% of the adult population experience infertility during their lifecycles. Since jumping into the business with 2 types of infertility treatment in 1993, LG Chem has launched a total of 7 products. The company’s staple product is ‘Follitrope,�?a type of Follicle-Stimulating Hormone. Follitrope inducts superovulation to develop numerous follicles.

In the past, collecting as many ova as possible was considered the most important, which is why drugs were used limitedly in the stage of inducing superovulation. Recently, implantation of a fertilized egg and maintaining one’s pregnancy have been revealed to be significant factors as well, calling for active research and development. In line with the recent treatment trend, LG Chem has expanded their R&D portfolio, which was focused on stimulating superovulation, to the area of pregnancy maintenance.

Hexavalent vaccine for infants, preventing 6 diseases at once

Due to their immature immune system, infants are more vulnerable to infection than other age groups. LG Chem’s hexavalent vaccine that can simultaneously prevent 6 diseases that are fatal to infants have entered phase 2 of clinical trial. In August 2024, ‘LR20062,�?a hexavalent vaccine based on acellular Pertussis(aP) began its overseas phase 2 clinical trial, getting ready to meet subjects to participate in the test. Followed by phase 1 clinical trial targeted at healthy grown-ups, phase 2 will target at infants 2 months or older, who are the actual subjects of the vaccine. It will be a comparative evaluation to confirm the safety and immunogenicity of ‘LR20062�?compared to the existing hexavalent vaccine.

‘LR20062�?is LG Chem’s hexavalent vaccine, simultaneously preventing 6 diseases that are fatal to infants: diphtheria, tetanus, pertussis, polio, type B haemophilus influenza, and hepatitis B. The more diseases a combined vaccine can prevent, the higher level of R&D capability it requires. This is because the immunological interference reaction between each vaccine concentrate must be considered. LG Chem’s hexavalent vaccine has lessened the number of vaccination from 6 times to 4 times, compared to the universal combination of pentavalent vaccine and hepatitis B vaccine.

Eupolio, for the prevention and eradication of polio

Polio is a disease that may cause paralysis when poliovirus infects one’s nervous system. It is a highly infectious disease, mostly affecting infants under 5 years old. Currently, polio occurs in only 2 countries. However, unless we give the vaccine to every single child, we cannot feel relieved that they are safe.

LG Chem developed ‘Eupolio,�?a vaccine that can effectively prevent and eradicate polio. First time for an inactivated poliovirus vaccine(IPV), it gained Pre-Qualification(PQ) approval from the World Health Organization(WHO). Through their aggressive investment in its facility, LG Chem has secured an annual production capacity of over 60 million doses of Eupolio. In March 2023, the company signed a contract to supply $100 million worth of Eupolio vaccine to UNICEF for 2 years.

LB54640, a new drug for rare obesity

Rare obesity refers to becoming obese with a serious appetite control disorder due to a rare disease. In most cases, it occurs in one’s childhood, which highlights the importance of early management. Patients with rare obesity syndrome report defects in certain genes, like Melanocortin-4 Receptor(MC4R) which is essential for controlling their appetites. Suffering from this disease will only worsen their obesity, and in serious cases, they may avoid social activities.

LG Chem self-developed ‘LB54640,�?a Melanocortin-4 Receptor(MC4R) agent which treats rare obesity. In January 2023, the company transferred their global license to Rhythm Pharmaceuticals, who carried out a preclinical study and phase 1 clinical trial of LB54640. After confirming that there are no side effects, including skin pigmentation, Rhythm Pharmaceuticals set a high value on this MC4R agent. In July 2024, they entered phase 2 clinical trial with the very first subjects, beginning their development in earnest. Seeing that Rhythm Pharmaceuticals has pointed out ‘acceleration of LB54640 development�?as one of the 3 major missions to raise their company value, we can expect their active investment on the drug.

Eutropin, for the healthy growth of a child

Height is one of the indicators that tell us whether a child is growing healthy or not. When a child’s height is in the lower 3% of his/her gender and age group, or when the child is more than 10cm shorter than the average of his/her age, we call it ‘child short stature.�?Child short stature is caused by various factors. The child may be born small and fail to have a ‘Catch up growth, or Compensatory growth.�?Or, the child may have a Growth Hormone Deficiency (GHD). In some cases, the symptom may occur without a specific disease. Typical examples are ‘familial short stature�?caused by genetic factors and ‘constitutional growth delay,�?when the child’s constitutional features slow his/her growth down.

In 1993, LG Chem first presented Eutropin, a short stature treatment for children whose growth is slower than his/her age group. Following Eutropin, which is injected once a week, the company also launched Eutropin S in 2022, which is injected daily. Growth hormone needs to be self-administered every day for at least 1 year, and a stable supply of the product is essential. To secure a stable supply of Eutropin S, LG Chem invested more than $30 billion on internalizing the production process of a pen-type product. Furthermore, they converted all outsourcing processes to self-production, including the solution filling process. On the other side, the company developed EuDi app to effectively assist the patients with self-administration of Eutropin. The app enhanced the convenience of both patients and guardians across the whole process, from injection management to treatment effect analysis and requesting treatment supplies or consultations. (Click to see EuDi APP content)

From infertility treatment to hexavalent vaccine for infants, polio vaccine, rare obesity treatment, and growth hormone! LG Chem is concentrating on providing effective Life Science solutions for the entire lifecycle of a man, from pre-birth to growth after birth. For the healthier lives of the humanity, LG Chem will continue to expand their Life Science portfolio.

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LG Chem’s new employee voluntary service since 2023, ‘Green Class Employee Volunteer Team.�?Today, we hear from Senior Lee Solji who planned this program.

What is Green Class Employee Volunteer Team?

‘Green Class�?is a social contribution activity that teaches our future generation about climate, environmental, and social issues that they will have to face. The program is mostly operated online, but with hope to meet students face-to-face, we established the employee volunteer team. Since last year, our employee teachers have been visiting elementary schools and care centers to run the class. The team is composed of LG Chem employees who provide students with 2 weeks of environment education, along with career mentoring.

Last year, employees from LG Chem headquarters successfully finished the pilot program. This year, it has been expanded to 5 business sites: headquarters, Magok, Yeosu, Iksan, and Osan in Korea.

How Green Class Employee Volunteer Team Works!

Our volunteer team makes two visits to one organization. On our first visit, we provide environment education. Students learn about biodiversity through Green Class education materials and videos, followed by a craft session of decorating their own mood lamps using a kit with endangered species drawn on it. Seeing young students raise their hands to ask questions and make their unique lamps, we always wish we had more time.

The second visit is a career mentoring session. Our employee teachers share their process of growth, deciding their paths, and their hard works. Based on the mentoring, students set their own goals and think about their own future while filling in the Mandal-Art chart. Since it’s the second visit, students feel more familiar with the teachers. As we listen to their dreams, we can’t help the smiles on our faces.

LG Teachers! Please come again!

Since expanding the program to five business sites, 68 employees have visited 24 organizations to meet about 700 students, having meaningful time of studying biodiversity and discussing their careers.

In particular, this year at Yeosu plant, our volunteer team visited a small branch school on an island, with only 11 attendees. Normally, Green class targets at upper grades only. However, in this case, the whole school participated in the class. At the end of the class, the students shouted “LG Teachers! Please come again!�?School teachers also thanked our volunteer team, saying, “We were sorry that we couldn’t provide various activities, due to the small size of the school. Thank you for visiting such a small island, and we hope to have more of these opportunities.�?/p>

The employees who participated also commented, “It’s hard to take part in a volunteer service besides my job, and it was a fun experience to prepare for this class and meet children. I enjoyed it so much that I forgot it’s a volunteer service, and while introducing my job to those children, I gained motivation for the role again.�?/p>

Green class employee volunteer team is having a break, as schools have entered their summer vacations. Coming up in the second half of the year, the team plans to become employee teachers once more to meet more students. Next year, we will add more topics and diverse activities to restructure the program.

Please keep your support for the CSR Team, as we practice the company’s social responsibility and plan various social contribution programs to coexist with the local community.

* This article is based on the contribution published by Professional Lee Solji of LG Chem CSR Team.

LG Chem’s ‘Green Class�?is a program of developing and distributing educational videos and workbooks to schools and care centers, so that teenagers can understand the upcoming climate crisis and environmental problems. ‘Green Class Employee Volunteer team�?visits educational organizations as special lecturers to communicate with students through the class and mentoring sessions.

LG Chem, together with the volunteer team, will continue to help teenagers become global citizens who can actively deal with social and environmental problems. We call for your attention and support for LG Chem’s employee volunteer team!

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With the growth of LG Chem’s business and expansion of their products, the company’s greenhouse gas emissions are expected to increase. In that context, LG Chem became the first player in Korea’s chemical industry to announce their sustainability strategy in 2020, known as �?050 Carbon-neutral Growth,�?which provides differentiated and sustainable solutions to the customers, society, and environment. Since then, the company has been carrying out various carbon reduction activities, both internally and externally. This brought about many positive changes, and LG Chem made this a steppingstone to propel the introduction of new processing methods, conversion to eco-friendly raw materials and fuels, and extended use of renewable energy.

In July 2024, LG Chem issued <2023 Sustainability Report>, which reflects their efforts to realize Net Zero* through partnerships with other groups. The report introduces LG Chem’s strategies and practices to achieve Net Zero through different partnerships, and to excavate opportunities for sustainable growth. According to the report, LG Chem has chosen five core missions with the goal of ‘providing innovative and differentiated sustainable solutions for the environment and society�? Climate action, Renewable energy transition, Circular economy, Environmental protection, and Responsible supply chain.
Today, we will review the ESG outcomes that LG Chem accomplished by putting this sustainability strategy into practices.
*Net Zero: An initiative to make greenhouse gas emissions from human activities 0 (zero) by reducing the amount of emissions and absorbing carbon dioxide in the atmosphere

Greenhouse Gas Reduction

In order to reduce greenhouse gas, LG Chem is targeting at carbon-neutral growth by 2030, followed by NET Zero, or zero(0) carbon emissions, by 2050.

In 2024, LG Chem signed a long-term contract to secure wind-power renewable energy on a grand scale. Starting from 2026, the wind farms in Yeongdeok and Yeongyang of South Korea will supply up to 615GWh of wind-power energy for 20 years. This partnership takes the form of 3^rd party Power Purchase Agreements (PPA) and Renewable Energy Certificate (REC) sales contract. By reinforcing their renewable energy supply chain, LG Chem aims to lead eco-friendly energy transition in the petrochemical industry. As the company secures the eco-friendly energy supply chain, they will be able to lead carbon neutrality and provide differentiated customer values.

Manage Product Carbon Footprints and Protect the Ecosystem

In 2023, LG Chem established the ‘Carbon footprint Analysis and Management Platform (CAMP),�?aiming at completing evaluation of all domestic and global products. Furthermore, they expanded the application of carbon footprint analysis, which identifies the amount of carbon emissions from raw material to production, to their research tasks. Carbon reduction became the core criteria that determines the priority of LG Chem’s research and development tasks. The company has completed carbon footprint analysis of all domestic and global products, and is now securing the baseline for environmental effect evaluation and improvement.

In addition to this, LG Chem intends to make zero landfill waste in order to protect the local ecosystem. Four of their business sites have acquired platinum or gold in the international ‘Zero Waste to Landfill (ZWTL)�?certification, and they are striving to maintain these levels. Besides this, LG Chem is also committed to protecting the marine ecosystem through their research of restoring seagrass colonies in the sea of Yeosu, Korea. By transplanting seagrass in empty spaces to connect different seagrass colonies, LG Chem succeeded in widening the colony to the size of four soccer fields, allowing visitation of various marine animals including seahorses. Such passionate movements will hopefully bring positive impacts to the sustainability of the marine ecosystem.

Environment, Health, and Safety

LG Chem is also making a significant progress in Environment, Health, and Safety. As for Safety, the company targets at becoming the global top-tier. In fact, in 2023, they achieved ‘Zero�?serious disaster in their entire business sites. On top of that, LG Chem has been investing average $150 million into environmental safety for 3 years, and is now converting high risk facilities to a ‘Digital Safe Factory.�?Based on the law, a petrochemical plant has to stop operation every 2 or 4 years for maintenance of its facilities. During this process, laborers are exposed to a high risk while working from a high or sealed place. Recently, automated machines are replacing their works, such as high-performance test drones and high-pressure cleansing devices, which contribute to both the efficiency and safety of the process.

Sustainable Management of the Supply Chain

LG Chem not only cares about their own ESG, but also the ESG of their supply chains. For a sustainable management of their supply chain, the company has built a new organization specializing in the ESG task and is striving to improve their partners�?ESG competencies through supply chain ESG evaluation, actual inspection, etc. Moreover, they are carrying out various discussions with related departments on ESG evaluation, securing carbon footprint data, and responding to customers and partners. Through these efforts, LG Chem seeks to respond flexibly to crisis or changes, and to not just establish an eco-friendly supply chain, but also coexist with their partners. The company has developed a behavior standard to be complied by their partners, and is asking them to submit written pledges. So far, LG Chem has received the pledges from 96% of their 1,900 partner groups filtered through their internal standard. To create a sustainable future value, LG Chem is continuing their efforts to establish a transparent supply chain based on their social responsibility.

Above was an overview of LG Chem’s ESG Outcomes. LG Chem will continue to lead the decarbonized supply chain ecosystem, connecting their customers and partners, through reinforcement of their ESG supply chain management capacity and global collaborations. Please keep your support for LG Chem as they improve their environment indications and build a sustainable industrial environment.

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An essential component of an electric vehicle, lithium-ion battery! A key material that makes up a lithium-ion battery is the ‘anode binder.�?An anode binder plays an important role in mechanical stabilization of the anode active materials and heightening the battery efficiency. Today’s FOCUS ON looks into the anode binder, the key player that enhances the capacity and efficiency of a lithium-ion battery.

Anode Binder Serves as an Adhesive

Before we get onto the anode binder, let’s understand what a ‘Binder�?is. As the term tells you, a binder ‘binds,�?‘ties,�?or ‘puts two things together.�?In Chemistry, binders serve the role of attaching ‘active materials (involved in the electrode reaction of an actual battery)�?and ‘conductive materials (facilitate the movement of electrons)�?to a thin layer known as the ‘collector.�?Here, collector is the part that lets electrons in and out of the active materials to facilitate electrochemical reactions when batteries are charged or discharged. When active and conductive materials are blended and attached to the collector uniformly, it stabilizes the battery capacity. To put it simply, a binder is an additive material that helps blend and apply the active and conductive materials evenly, plus maintain the mechanical properties like interfacial bonding and internal binding of the electrodes.

A binder is a non-conductive insulator, which varies by types depending on its application, such as in cathode or anode. The most common types are Line Contact PVdF (Poly-Vinyli-Dene Fluoride), Point Contact SBR (Styrene Butadiene Rubber), and Point Contact CMC (Carboxymethyl Cellulose). PVdF is a non-aqueous binder, whereas SBR and CMC are aqueous binders. Non-aqueous binders are not soluble in water and must be collected after disposal, generating environmental costs. However, aqueous binders use water as their solvent, reducing both environmental impacts and costs. What’s more, Point Contact binders SBR and CMC have better fixation than Line Contact binder PVdF. In most cases, non-aqueous PVdF is applied to the cathode, while aqueous SBR and CMC are applied to the anode. This is because cathode consists of materials whose volumes do not expand much, such as nickel, cobalt, and manganese, but anode is composed of materials with a larger variation of volumes.

Recently, an increasing number of cases use silicone as an anode material in place of graphite, which can expand the battery capacity by about ten times. Yet, silicone can swell up severely when the battery is charged or discharged, eventually shortening the battery lifespan. To solve this problem and complement the weaknesses of existing batteries, LG Chem has applied Carbon Nanotube (CNT) to their conductive materials, and also used a stronger binder.

When a binder has a poor bond, the electrodes expand during charging and discharging, creating a distance between the active materials. As a result, the number of electrons decreases, whereas they take more time to pass through.

To tackle this issue, LG Chem has optimized the composition and structure of the binder particles, and minimized the clumping between binders through a specially-designed functional monomer. Thanks to this change, there are more contact points with the active materials, improving the adhesion efficiency and bonding between the conductive and active materials. In addition, by preventing the binder from moving to the top of the electrode during its drying process, the binder could be evenly distributed within the electrode, enhancing its bonding with the active materials and collector. LG Chem’s anode binder boasts high electrochemical stability and excellent cycle when the battery is operated, whereas the battery’s internal resistance stays low. Furthermore, LG Chem is Korea’s largest producer of Carbon Nanotube (CNT) for the conductive materials that are applied to binders and silicone anode materials.

Anode binder’s application centered on batteries

LG Chem’s anode binders are applied to various batteries. It is found in the lithium-ion battery of an electric vehicle, or the ESS (Energy Storage System). ESS batteries are made both for homes and electrical grids. ESS battery for homes is connected to the solar panels to save energy at daytime and use that energy to provide electricity at nighttime. As for the ESS battery for grids, it is installed at wind or thermal power plants and substations, etc.

Today, we introduced the anode binder that enhances the capacity of a lithium-ion battery. With rising attention to electric vehicles and their power source, the lithium-ion battery, companies are investing much on R&D of technologies that heightens the capacity and efficiency of a battery. Keep your support for LG Chem, as the company continues to reinforce their strength in battery materials and produce a maximized-capacity of lithium-ion batteries.

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LG Chem ranked 4^th in ‘Global Top 50 Chemical Companies 2024,�?announced by C&EN (Chemical&Engineering), a media that specializes in the chemical industry. Before that, the company’s highest record was 7^th in 2021. That is three huge steps in just three years. Today, we introduce how LG Chem stepped up as the 4^th leading global chemical company.

C&EN is a weekly magazine published by the ACS (American Chemical Society), delivering specialized/technical information in the fields of chemistry and chemical engineering. Every year, the media collects and analyzes the sales and business profits of chemical companies, evaluates them based on various records and performances, and announces the list, known as ‘Global Top 50 Chemical Companies.�?This year, LG Chem occupied 4^th in the list. In 2018, the company entered Top 10 of the same list, first time for a Korean chemical company. After 6 years, their position escalated to Top 5.

LG Chem could climb up to a higher position, thanks to the company’s diverse performances. Amid the slump of global chemical companies due to the oversupply issue, LG Chem’s sales recorded $42.3 billion, increasing by 6.5% compared to 2022. Furthermore, the company’s strategy of expanding their new business based on eco-friendly raw materials and reinforcing their strategy in battery materials had positive impacts on the evaluation.

Strategic expansion of new business based on eco-friendly raw materials

LG Chem signed a contract with Italia-based ENI to establish a production plant for HVO, a next-generation bio oil. By 2026, the two partners plan to construct an HVO plant within LG Chem Daesan site, Korea, with the production capacity of annual 300,000 tons.

HVO is a hydrogenated vegetable oil produced by adding hydrogen to plant-based raw materials such as waste cooking oil. Frost-proof in low temperatures, it is used as an eco-friendly fuel in automotive and aviation. LG Chem is targeting at internalizing HVO so they can use it to produce bio SAP (Super Absorbent Polymer), bio ABS (Acrylonitrile Butadiene Styrene), and bio PVC (Polyvinyl Chloride).

In addition, LG Chem has signed an HOA (Heads Of Agreement) with CJ Cheil Jedang to establish a joint business that produces and sells eco-friendly nylon based on bio raw materials. The two partners will produce bio nylon, which is a plant-based bio raw material using corn or sugarcane. The material can be used in various industries, including automotive, electronics, and fabrics. With heat-resistance and durability similar to conventional nylon, plus a high carbon-reduction effect, it is attracting the eyes of many companies. While CJ Cheil Jedang produces bio raw materials, LG Chem will use these to produce and sell bio nylon. Based on this partnership, LG Chem will continue their business based on eco-friendly, low-carbon raw materials, leading the industry’s reduction of carbon footprints.

Next, LG Chem has signed an MOU (Memorandum of Understanding) with Korea’s GS Caltex for a collaborated business of 3HP (3 Hydroxypropionic Acid). The MOU is in continuance of the JDA (Joint Development Agreement) signed by the two partners in 2021 and 2023 construction of 3HP Demonstration plant in GS Caltex’s Yeosu plant, Korea.

3HP is an eco-friendly material produced by microorganism fermentation processing of plant-based raw materials. It is applied to various products, including biodegradable plastic, diapers, paints, adhesives, coating agents, and carbon fiber.

When LG Chem’s global-top level 3HP fermentation technology meets GS Caltex’s advanced technology of processing and facilities, we can expect a stronger synergy effect. The collaboration will bring positive effects in various fields, such as carbon-neutrality and resource circulation. Through this opportunity, the field of eco-friendly materials will develop as a future technology that can protect both the environment and society.

Finally, we cannot leave out LG Chem Dangjin Plant, Korea. Scheduled to complete construction by 2024, LG Chem Dangjin plant boasts the size of 32 soccer fields, including Korea’s first supercritical pyrolysis plant and next-generation insulation material, aerogel plant. For the first time in Asia, we can break down waste plastics using pyrolysis oil and synthesize them to produce recycled plastics. Pyrolysis oil is a raw material made by heating up waste plastics that have limitation in mechanical recycling, which is utilized in the production of new plastics. Through this process, waste plastics can also generate the energy required to operate the plant.

Dangjin plant also produces aerogel, a material composed of gas. Thanks to its lightness, high heat-resistance, and low density, it is used as a thermal-resistance and insulation material. By producing pyrolysis oil and aerogel at Dangjin plant, LG Chem intends to take one step closer to the eco-friendly future business, preparing a sustainable future.

Reinforcing strategy in the battery materials field

LG Chem is also reinforcing their strategy in the battery materials business. First, the company has signed an MOU with the State of Tennessee, the US, to construct a cathode plant. LG Chem plans to build a cathode plant in the 1.7 million m³ site in Clarksville, Tennessee, with annual production capacity of 120,000 tons. This is the largest scale in the US, enough to produce 1.2 million high-performance pure EV batteries. Considering the many EV battery and OEM companies situated in the same state, the company has secured a locational advantage to import raw materials and supply products to their customers.

Tennessee plant will be operated by 100% renewable energy. By signing a partnership with a local electricity supplier, LG Chem will receive a stable supply of electricity. After that, the electricity company will cover renewable energy equivalent to the amount of electricity supplied to LG Chem. Starting from Tennessee plant, LG Chem seeks to provide a differentiated value to their customers, taking a leap as North’s America’s top cathode supplier.

Also having significance is the contract with GM (General Motors) to supply a large scale of cathode materials. LG Chem has signed a partnership with GM to supply over 500,000 tons of cathode materials by 2035, which can create 5 million EV batteries. LG Chem’s Tennessee plant will provide the cathode materials to Ultium Cells, GM’s joint corporation.

With the news of LG Chem occupying 4^th in C&EN’s ‘Global Top 50 Chemical Companies 2024,�?we looked at the factors of LG Chem receiving positive evaluation. Please keep your support for LG Chem as they continue to grow and develop in various fields, including new businesses based on eco-friendly raw materials and battery materials.

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We meet materials developed by LG Chem in every corner of our lifestyles. ‘Automobiles,�?an indispensable part of our lives, is of no exemption. LG Chem produces the materials for various automotive parts, from adhesives to car seats, interior/exterior materials, and EV batteries. Here are the case stories of LG Chem’s products applied to cars.

Participate in Decarbonization Project of EV Brand

LG Chem is taking part in the decarbonization project run by a European premium EV brand. The project aims at producing climate neutral cars by 2030. From material production to development of parts, processing, and delivering the final product to customers, the goal is to make carbon emissions ‘zero (0)�?across the whole process.

Through this project, LG Chem plans to develop and supply eco-friendly plastics that will later be applied to the EV brand’s automotive parts, such as the interior/exterior. The two partners will conduct long-term meetings to analyze the material development, manufacturing process, and energy used, etc. to seek means of reducing their carbon footprints.

By 2025, LG Chem will partner with not just the EV brand, who is at the center of the project, but also other groups to find solutions to carbon reduction. By 2027, they plan to run a pilot project focused on automotive materials and supply chain. Finally, by 2030, the company aims to secure the production facility where they can mass-produce climate neutral cars.

To make this project a success, LG Chem is willing to take the lead in carbon reduction, based on their decades of know-how in materials R&D and technologies related to eco-friendly materials. Adding to this, the company plans to expand their eco-friendly material solutions.

Supply Heat-resistant ABS to Korean Automotive Company

LG Chem’s Heat-resistant ABS will be supplied to a Korean automotive company, first time in the country. Heat-resistant ABS is a material that boasts excellent processability and painting properties, realizing a sophisticated and stylish design of a car. Lighter than the conventional PC/ABS, it enhances fuel efficiency and cuts down carbon emissions, contributing to making a sustainable environment. Furthermore, it has high heat-resistance and optimal balance of the physical properties, offering durability that can satisfy its users.

LG Chem’s Heat-resistant ABS is applied to the trunk lid garnish and back panels of many automotive brands. By switching their material to LG Chem’s Heat-resistant ABS, this Korean brand has improved the defects in painting and molding, which were some of the quality issues they had regarding their products. This helped them reduce the loss cost by lowering their defect rate. To do this, LG Chem used the same material as existing automotive parts for a thorough comparison/analysis of their Heat-resistant ABS, verifying the improved results with a quantitative 3D scanning value. The result proved that using Heat-resistant ABS could improve over 10% of the painting defect rate compared to the conventional material.

In the automotive industry where OEM registration is critical, LG Chem’s supply of heat-resistant ABS holds significance by laying a foundation of further application to new and other cars. Not only LG Chem, but also the automotive company is expected to provide improved products and services to their customers.

Sign Contract for Supplying Films to Automotive Sunroof Brand

LG Chem signed a contract to supply SGF (Switchable Glazing Film) to a leading global company who produces automotive sunroof systems and is chosen as world’s Top 100 electric parts supplier. SGF is a film that can control light and heat penetration through electric signals, usually applied to automotive glass, such as the sunroof. Its original color is opaque, but it turns transparent when voltage is applied. By using SGF in a car, we can divide the glass into transparent and opaque sections. This means we can shade certain parts of the window, ensuring privacy in the car. Recently, an increasing number of premium cars and EVs are applied with SGF.

LG Chem possesses more than 200 domestic and international patents for SGF, with technologies and know-hows they have accumulated in the field of electronic materials, including display and semiconductors. Compared to its competitors, LG Chem’s SGF shows weaker light interference, offering a clear view from whichever direction. Moreover, LG Chem has procured the SGF production facility enough to cover annual 3 million cars.

This is not the end, for LG Chem is targeting at developing next-generation SGF with a vivid black color and quick response speed, and expanding the application of SGF to front and side glasses.

Today, we introduced LG Chem’s product used in diverse automotive parts. Please look forward to LG Chem’s future as they foster the mobility materials business, one of the future growth fields, based on the company’s technologies in electronics including display and semiconductors.

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A new material used in pharmaceuticals, automobiles, aviation, and semiconductors! From battery conductive materials to sports equipment like hockey sticks and golf clubs, shielding plastic for electronics, and improving the durability and strength of automotive components, CNT (Carbon Nano Tube) comes useful in all industries! Today’s FOCUS ON will look thoroughly into the next-generation material, CNT.

CNT, a material of our dream,
surpassing the features of existing materials

CNT, short for Carbon Nanotube, was first discovered in 1991 in Japan by Dr. Sumio Ijima of NEC Research Lab. Its diameter is a nm (nanometer) scale, but it has been dubbed ‘the new material of our dream�?for its high electric conductivity and heat conductivity.

CNT is an allotrope* of carbon, possessing a cylinder-shaped nano structure. It gained its name from the tube-shaped Graphene film that consists of carbon atoms. Depending on at what angle the Graphene film is rolled into a tube shape, nanotubes come with different shapes and diameters, which determine their use in metals or semiconductors.

*Allotrope: a substance whose molecules or crystals are made of atoms of the same element, but with different arrangement of the atoms

CNT’s strength is 100 times that of steel, which makes it the strongest material that has ever been discovered. Also, its electric conductivity is equivalent to that of copper, and heat conductivity similar to diamond. Its lightness and flexibility, owing to the tube shape and hollow space inside, make it stand out even more. As the material is composed entirely of carbon, it is stable in chemical reactions and easy to synthesize with other materials. Yet, its thickness is only a nanometer scale, which is 1/10,000 of a piece of hair. Thus, we can secure excellent electric conductivity at minimal input.

Applications of CNT

CNT is known as an essential material of EV batteries. Not only that, it is also used in automotive exterior (side mirrors, car seats, heated handles), aviation, secondary batteries, semiconductors, etc. With excellent electric conductivity and elasticity, it makes a great material for the exterior and wheels of automobiles, airplanes, and space crafts. Moreover, CNT is found in electronic devices, particularly in conductive substrates and semiconductor circuits, and various other fields including semiconductor, flat display, super-strong fiber, biosensors, and so on.

CNT is also applied to secondary batteries, both in cathode and anode. When CNT is used as a conductive additive* in the cathode, it embodies higher conductivity than the conventional conductive additive made of carbon-black. This means we can use less conductive materials and fill the space with anode, maximizing the battery capacity and lifespan. High conductivity contributes to battery charging speed, increased safety, and battery lifespan. LG Chem supplies CNT for conductive additives to battery players such as LG Energy Solution. There, CNT is used to maximize battery capacity and lifespan by helping the electric and electronic flows.

CNT is also used in the anode, which contains silicon active materials. CNT enhances the cell lifespan by maintaining the strong conductive network amid the expansion and contraction of the silicon active materials. While silicon anode gains attention as a next-generation anode material, the role of CNT is becoming more important.

*Conductive additive: a substance which stimulates the transfer of electrons between electrode active materials

LG Chem’s CNT business reaching out to the world

LG Chem has developed high-conduction and high-disperse CNT which heightens the material’s performance, and is now expanding their business to the global markets, including Japan, China, America, and Europe. While maintaining their research to make CNT’s conductivity more efficient, the company obtained over 550 CNT patents. Currently in operation are 3 CNT plants in Yeosu, Korea, and have commenced construction of the 4^th CNT factory in Daesan.

LG Chem’s 4^th CNT plant is expected to have annual 3,200 tons of production capacity. With the completion of the CNT4 plant, the company will secure annual 6,100 tons of CNT, which is more than twice of the current production capacity. Needless to say, it is the largest CNT plant in Korea, which will prepare the company for a high-speed growth of the global CNT market.

Today, we focused on the next-generation material, CNT. With active development of EV and its rising demand, the demand for battery materials is also increasing. In line with the trend, R&D of CNT for EV batteries is also in full swing. Please keep your support for CNT, which will continue to improve.

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A lithium-ion battery is composed of cathode, anode, separator, and electrolyte. If you refer to the previous ‘FOCUS ON�?where we addressed �?a href=" title="새창" target="_blank" rel="noopener noreferrer">high-nickel single-crystal cathode,�?cathode was introduced as the energy source of a battery, which determines the battery’s efficiency and capacity. Today, we focus on the separator, a main component of a lithium-ion battery, that prevents the contact between cathode and anode.

Separator, a safeguard that prevents
the contact between cathode and anode

A separator is essential for the battery safety. Lithium-ion batteries charge and discharge by the chemical reaction occurred when lithium-ion passes through the cathode and anode. Yet, direct contact between cathode and anode may cause short circuit, which can lead to safety accidents like fires. Serving as a safeguard that blocks the physical contact between cathode and anode is the Lithium-ion Battery Separator (LiBS).

While preventing the cathode and anode contact, it’s important to secure the lithium-ion passage for a battery to charge and discharge without a problem. To do this, a separator comes with microscopic pores (air holes). These pores let lithium-ion pass through, except when the battery’s internal temperature rises to a certain extent or there is a flow of an overcurrent, when they automatically close down to block the lithium-ion passage and prevent overheating. A separator also requires high insulation so that it does not react with lithium-ion inside the battery.

Types of separator according to its manufacturing method

The materials used to make a separator are Polyethylene (PE) and Polypropylene (PP), etc. PE and PP are manufacturable at a low cost, easy to process, offer excellent chemical stability and mechanical properties, and are light in weight.

Depending on the manufacturing method, separators are divided into dry and wet types. Dry separators create the pores by pulling and stretching PE and PP films in one direction. Unlike wet separators, they skip the process of removing the solvent, making the manufacturing process comparatively simpler. It is also eco-friendly, since it does not emit harmful substances. Yet, there is a challenge of making the sizes of pores even. Plus, dry separators have weaker mechanical strength and are thicker than wet separators, which limits their application to batteries with low energy density, such as Energy Storage System (ESS), electric city buses, etc.

On the other hand, wet separators create the pores by mixing PE and PP with paraffin oil at a high temperature, slowly hardening the sheet extruded at a high temperature · pressure, and extracting the oil filled in between the gaps of the films. Wet separators have a complex manufacturing process, and require a lot of materials to produce them, resulting in higher cost. However, the sizes of pores are even. Plus, they come with higher mechanical strength and are thinner than dry separators, securing higher energy density. Thus, they are mostly applied to fields that need high capacity · power batteries, such as small batteries like mobile phones and laptops, and electric vehicles.

The future of separators,
heading towards sustainable growth

Owing to the electrification trend of the automobile industry and countries making policies to regulate internal combustion engine cars to achieve Net Zero, the transition to electric vehicles is prospected to continue. With the rising demand for EV batteries, companies are striving to overcome the limitation of existing separators that lose their durability at temperatures over 130�? and produce separators that can maintain their stability even at high temperatures.

LG Chem has developed the ‘Safety Reinforced Separator^® (SRS^®)�? which can withstand heat of over 200�?by coating ceramic particles and polymeric binders on the surface of the separator. Since its first mass-production in 2009, LG Chem has continued to enhance their production speed, securing world’s highest coating production capacity.

Today, we looked into separators, an essential component that secures a battery’s safety. Even at this moment, companies are continuing their efforts to develop separators with high heat-resistance, along with researches to create thin separators that secure high energy density, which is a direct factor affecting an EV’s mileage. Please keep your support for the bright future of separators, as they make further improvements.

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In 2024, LG Chem is focusing more on ‘customers�?to improve their inconveniences and provide them with a more satisfying service. ‘We Hear from Our Customer’s Shoe�?is a series through which we look at the actual cases and efforts of customer service improvement. Today, we invite Professional Kwak Jihyeon (LG Chem Life Sciences Company, Specialty Care Department, Marketing 1 Team) to hear about ‘EuDi,�?an application (thereafter ‘app�? that manages the intake of LG Chem’s child short stature treatment.

Hello, please introduce yourself.

Hello, I’m Kwak Jihyeon from Life Sciences Company, Specialty Care Department, Marketing 1 Team. We are a team responsible for the marketing of drugs related to children’s growth. My role in particular is the marketing of a child short stature treatment.

I heard you developed an app to manage the intake of a child short stature treatment.
What exactly is child short stature disorder?

If your child’s height falls under the lower 3% of children in the same gender and age group, or is over 10cm shorter than the average height of the age group, we call it child short stature disorder.

There are different factors of child short stature. The child might have been born small, failing to have a ‘Catch up growth, or Compensatory growth*.�?Or, he or she might possess GHD** (Growth Hormone Deficiency). At times, short stature may appear without a special disease. This includes ‘familial short stature�?caused by genetic factors or ‘constitutional growth delay.�?/p>

*Catch up growth, Compensatory growth: When the health condition deteriorates due to nutritional deficiencies or illnesses, causing weight gain to stop or slow down. Once factors that inhibit growth disappear, growth may recover according to the original growth curve or even accelerate.
**Growth Hormone Deficiency: When the amount of growth hormone secreted by the pituitary gland is insufficient, resulting in a growth rate below average and a decrease in metabolic effects.

What inconveniences did the patients and guardians encounter
during the treatment of child short stature?

Once diagnosed with child short stature, the patient receives prescription of a growth hormone treatment from the hospital. The growth hormone treatment is a drug taken at a certain time of the day when growth hormones are secreted to support the patient’s growth. It is self-injected at home every day, which was a great burden to both the patients and guardians.

Children especially have a lower self-motivation for such a treatment. They know the importance of receiving the treatment, but in many cases, they would often reject the injection due to fear of shots and tiredness of repeating the process every day. Parents could only try to coax and comfort their child, and their hearts would grow weak, watching the child cry in front of them.

Injection therapy was indeed, a burden to the guardians. Of course, LG Chem has been providing on/offline education to support them with the self-injection. However, not many of them have experienced self-injection in their lives before. After all, the guardians are not professional medical personnel, and they often appealed that they are ‘afraid and worried of giving injections to their children.�?/p>

Self-injection sounds like a tough job.

Of course. Growth hormones have to be injected at a fixed amount and fixed time every day. Keeping the exact time itself is a challenge, and keeping the same amount is another. It would be helpful if the amount of dose stays the same, but it changes according to the child’s weight. We even use a different needle depending on how thin the child is. In another word, guardians are required to pay extra-close attention to their children in the journey of the treatment.

That’s not it. The drug is injected to different parts of your body every day, taking turns with your left and right arms, hips, and thighs. As the body part changes daily, patients easily got confused of its order. Saying that the injection follows a 7-day cycle, patients usually take the shot for 6 days and rest on the last. During the break, they often forgot which part of their bodies they had ended with.

Another inconvenience occurred due to the time. Growth hormone is mostly injected between 9~10PM right before the child goes to sleep. Hospitals are closed at this time, and it’s a pain when the child gets a sudden fever before taking the shot, since the parents cannot ask anyone about whether to give the shot or not.

Were there inconveniences for the medical personnel as well?

Child short stature requires over 2 years of consistent treatment. To make it most effective, it’s important that both the patient and guardian keep their motivation and steadily manage the intake according to the plan. Yet, it’s hard for them to keep the self-injection in track, and there was no way the medical personnel could check if the treatment plan is being kept at the patients�?homes.

Please introduce EuDi, the app for managing the intake of child short stature treatment.

EuDi is an app that accompanies the A to Z of growth hormone treatment. From ‘Injection therapy education,�?which is the very beginning of the treatment, to ‘Intake management�?that helps patients follow the plan, ‘Growth management�?which analyzes the effect of the treatment, and making requests of items and consultation needed to keep up with the treatment, EuDi app can deal with the whole process of curing child short stature.

How was EuDi made?

The birth of EuDi dates back to 2016. Even before the development of EuDi app, LG Chem had been striving to monitor and solve the customers�?pain points. One of the efforts was providing ‘growth note�?to child short stature patients and their guardians. It was a hand-written notebook to lessen the difficulties of self-injection treatment and give guidelines for a proper intake management.

It was then when our team manager visited an overseas conference and heard about ‘improving a patient’s intake experience through Connectivity,�?where he gained a hint of EuDi app. At that time, using digital technology to improve a patient’s intake experience was a global topic. After checking out the global trend at the conference, the team began their discussions about digital healthcare in earnest.

In 2017, a customer survey was conducted. Trainee nurses who were parts of LG Chem visited the patients and guardians in person to hear their pain points, and the basic functions of EuDi app were designed based on this survey. It took 2 more years until the official launch of EuDi in 2019. Soon after the launch, coronavirus pandemic broke out, hindering offline injection educations. This brought a sharp increase in the number of EuDi app users starting in 2020.

What are some functions of EuDi that helped improve customer pain points?

The basic functions of EuDi include injection education, intake management, growth management, and request items or consultations. All of these started from improving our customers�?pain points. To introduce one of key functions, there is a tool to help motivate the patients and check the effect of the intake.

‘My character�?is a function to help motivate the patients. We’ve developed a EuDi character, hoping that the treatment can be of an enjoyable memory for our young patients. 4 types of characters appear with the names of ‘Eutae,�?‘Trudy,�?‘Romina,�?and ‘Pendel.�?According to the number of intakes, each character takes a number of steps to grow up as a musician, scientist, athlete, and a cook. This was a medium to show that we are growing along with these characters.

‘EuDi�?badge is another device to help the patients�?motivation. When the children take injections based on the prescription schedule, they can input a record on the app and receive badges. By acquiring these badges, they can feel a sense of achievement. To share a behind story of how this function was created, we got a hint from the badge that we receive by recording our workouts on a smart watch. I guess all smart watch users would relate to this. Every day, your smart watch rewards you with a badge when you accomplish the workout goal you’ve set. Though it’s trivial, this function helps motivate your exercise. We added a EuDi badge mission, hoping that our young patients, too, could feel a sense of motivation during the treatment.

There is also a ‘cheering message�?function, which lets parents send their children, and the children send other patients a message of support. It is a tool to help parents and patients form a bond of sympathy and share their supports for each other. It is another way of using EuDi to motivate our patients during the treatment.

What was the initial response from the customers (patients and guardians) towards EuDi?

EuDi is the first system to be introduced in Korea that supports child short stature treatment. As a pioneer, it received positive evaluation from the patients and guardians since its first launch. The EuDi characters, which were developed to make the app more familiar to children, gained good response. In the initial survey, about 80% of the users replied that they were satisfied with the app. Again, 2 years after its launch, 84% of the respondents showed satisfaction with the app.

I heard that recently, EuDi received the main prize for customer experience at iF Design Award,
known to be one of the world’s Top 3 design awards. What made EuDi win such a prize?

EuDi is an app that offers great functions, along with entertainment that suits the eye level of young patients. We’ve planted motivational factors here and there so that children can have an enjoyable intake experience until they finish their long journey of the treatment. I believe we got a good result in iF Design Award since we did not stop at developing functions required by the customers, but stuck to the entertainment points to help motivate our patients.

We’re proud that EuDi was acknowledged for its strengths. At the same time, once again, we realized that EuDi must pursue the direction of ‘putting on our customers�?shoes to understand their feelings.�?/p>

The birth of EuDi is a case of customer experience innovation.
What should we do to think from our customers�?perspectives?

I think it’s important that we have the right attitude and view about our work. If we limit our jobs to drug marketing, it’s hard to think from our customers�?perspectives. If we switch to thinking that the essence of our job is to ‘help children grow up healthy,�?this naturally helps us listen to our customers�?voices with an open heart. That’s why I often remind myself not to limit my job.

Finally, what do you hope EuDi becomes for its customers?

I hope EuDi remains as a ‘friendly app�?for both patients and guardians. Later when the children grow, they could reflect their childhood and say ‘EuDi had been my good partner.�?I also wish that EuDi can expand its domain. Now, EuDi focuses on the patients and guardians of child short stature disorder. My hope is that it could become an app to provide information about children’s growth in general, and approach to future customers who are still considering getting the treatment. Let’s say, we could create a ‘EuDi app light version�?(Laugh). It will be great if I can meet a broader group of customers through EuDi.

EuDi app walks together in the journey of child short stature treatment. As Professional Kwak Jihyeon said, LG Chem hopes that EuDi can be remembered by the patients as a partner who accompanied their childhood’s growth. We will come back with another case of putting on our customers�?shoes and improving their pain points.

The post EuDi, Accompanying the A to Z of Child Short Stature Treatment! �?We Hear from Our Customer’s Shoe appeared first on LG Chem Blog.

From April 23^rd to 26^th 2024, LG Chem visited Shanghai, China to take part in ‘Chinaplas 2024,�?Asia’s largest global plastic and rubber exhibition. Occupying all 15 exhibition halls at National Exhibition Convention Center (NECC) in Hongqiao, Shanghai, this year’s Chinaplas recorded over 380,000m² in exhibition size, welcoming more than 4,000 leading plastic and rubber producers from around the world including LG Chem. The event gained unprecedented attention from the public, and the number of visitors was totaled at 322,000.

Meanwhile in Florida, ‘NPE2024: The Plastic Show�?was held from 6^th to 10^th of May. NPE (National Plastics Exposition) is considered world’s Top 3 plastic exhibitions, along with Chinaplas. Same as in China, LG Chem met a large number of customers in the United States and introduced their diverse eco-friendly products. Check out how LG Chem played in the two largest plastic exhibitions, Chinaplas and NPE, in China and the United States.

See Chinaplas 2024

The major keywords of Chinaplas 2024 were ‘Circular Economy & Sustainability,�?‘Digitalization,�?‘Innovative Materials,�?etc. In line with these topics, LG Chem arranged a booth with various themes, introducing their automotive, home appliances, and core materials. Occupying the largest exhibition size among Korean companies (400m²), LG Chem divided the booth into three separate zones: LETZero* Zone, Mobility Zone, and Living Zone, displaying their eco-friendly and high-value-added strategic products.
*LETZero: A compound word of ‘Let�?and ‘Zero (0),�?meaning ‘Zero harm to nature, Zero net-increase of carbon emissions.�?As LG Chem’s leading ‘global eco-friendly material�?brand, LETZero symbolizes innovative and sustainable solutions.

At the center of the booth was installed the ‘LETZero Zone,�?where visitors could experience diverse items, from Bio-based products based on vegetable raw materials, such as Bio-PA and PLA, to Bio-Circular Balanced SAP diapers made with Renewable Feedstock extracted from waste cooking oil.

Not only bio products, but LG Chem also displayed their food packaging materials (produce bags, food wraps) and agricultural mulch films** made of COMPOSTFUL�? the company’s compostable material that is scheduled to start official mass-production in May. In particular, the booth was arranged so that visitors could come and grab a piece of produce bag with them. By offering the visitors with a hands-on experience of the company’s products, LG Chem succeeded in gaining much attention from the public.
** Mulch film: A film used to cover the surface of the soil while cultivating plants. It is one of the important measures of managing soil.

Displayed at the Mobility Zone were ABS (Acrylonitrile Butadiene Styrene) used in automotive interior/exterior, BR (Butadiene Rubber) and SSBR (Solution Styrene Butadiene Rubber) applied to tires, CNT (Carbon Nanotube) with world’s best quality based on LG Chem’s proprietary technology, EV battery packs and charging station applied with Engineering Plastics (EP), etc. Also drawing attention were touch pads and transparent OLED monitors that allowed the visitors to check out detailed information of the products exhibited within the zone.

Finally, the Living Zone displayed materials that are widely used in daily-use home appliances such as ABS, POE (Polyolefin Elastomer), a plastic made from carbon dioxide, so-called PEC (Polyethylene Carbonate), and 3HP (3-Hydroxypropionic acid) obtained through an eco-friendly fermentation processing. The exhibition included various products that actually utilize these materials, including water purifiers, furniture sheets, solar panels, and so on.

Besides the exhibition zones, ‘LETZero Café�?provided beverages to those who visited the booth. For a smooth communication, a meeting lounge and 9 meeting rooms were installed in the 1^st and 2^nd floors of the booth.

See NPE 2024

Same as in Chinaplas, LG Chem arranged a 334m² wide (the largest scale among Korean companies) booth in America, which was again divided into three main sections. In order to promote eco-friendly, high-value-added strategical products to the American market, over 40% of the products displayed at LG Chem booth consisted of eco-friendly items, and the booth included a lounge and 6 meeting rooms for the convenience of the visitors.

Other than compostable and bio materials, the LETZero Zone featured a special exhibition of Circular Pyrolysis Oil made through LG Chem’s ‘Supercritical pyrolysis technology,�?which switches waste plastics back to the initial raw material stage. Included in the display were Circular Balanced PE/PP, ABS, and PVC pellets based on the oil, which attracted the eyes of many customers.

While the world is making collective efforts for a better environment and sustainable future, LG Chem could see with their own eyes the rising demand for recycled and eco-friendly materials by participating in two exhibitions, Chinaplas and NPE 2024. Please keep your support for LG Chem as they carry on their steps as a global chemical leader.

The post A throwback to Chinaplas 2024 and NPE2024! LG Chem’s continuous efforts for sustainability appeared first on LG Chem Blog.

Have you heard of the lightest solid in the world �?Aerogel? Today’s ‘FOCUS ON�?zooms into Aerogel, gaining attention as a next-generation material!

Solid that is transparent and light?
Promising next-generation material, Aerogel!

Composed of over 95% air, aerogel enjoys the fame of being the lightest solid in the world. It consists of silicon dioxide (SiO�? silica) 1/10,000 the thickness of a string of hair. Thanks to its nano-structure which resembles tangled string, aerogel can withstand 2,000 times its own weight and over 1,000�?of heat, turning it into an excellent soundproofing and insulating material. Aerogel’s light yet strong properties enable it to bear extreme conditions, thus it is often used in building spacecraft, spacesuit, and arctic clothes. These days, its demand is rising to be used as a thermal shielding material in EV batteries.

How Aerogel is produced

The term aerogel is a compound word of ‘Aero (air)�?and ‘Gel (solidified liquid).�?In order to produce aerogel, we must create a silicon dioxide (SiO�? silica) gel that combines oxygen and silicon.

The gel obtained from this process is similar to jellies that we commonly enjoy. Like jellies, gel has the shape of a solid, yet its inside is composed of liquid. To get rid of this liquid, it is required to take the ‘Supercritical Drying�?method. Unlike evaporation or other drying methods, the interfacial tension of supercritical drying is close to zero (0), which allows removal of liquid without damaging the structure.

*Interfacial tension: The tension between two substances with a different state (solid, liquid, and gas) that tends to contract the area of the interface

Once you put gel, which includes liquid (solvent), in a pressure vessel and let flow supercritical* carbon dioxide that is in a high-temperature and high-pressure state, the liquid (solvent) within the gel is replaced with carbon dioxide. Then, as you gradually lower the pressure, the carbon dioxide evaporates in a gas form, letting the air in the atmosphere enter. This produces porous aerogel with over 95% of porosity.

*Supercritical: The state of a substance which exists under the temperature and pressure that exceed the critical point where liquid and gas are separated

LG Chem’s Aerogel advances to the global market,
with construction of a supercritical pyrolysis plant

LG Chem has developed aerogel based on their proprietary technology, which is divided into high-and-low temperature industrial aerogel blankets and thermal barriers for EV batteries. LG Chem’s aerogel is used in the pipes and facilities of industrial sites as a thermal insulating material to minimize loss of heat and block battery thermal runaway.

LG Chem intends to invest a total of $238 million (KRW 310 billion) by 2024 to construct Korea’s first supercritical pyrolysis and aerogel plants in Seongmun Industrial Complex, Dangjin, South Chungcheong Province, Korea. The construction site is expected to stretch across 240,000�?(equivalent to 32 soccer fields), becoming the home-ground for their eco-friendly future business. (See related content: Beginning construction of pyrolysis oil and aerogel plant!)

Prospects are that the aerogel market will grow at an average of 30% per year, with rising demand for transportation∙storage of eco-friendly energy (liquid hydrogen) and thermal shielding materials. The demand for industrial thermal insulating materials (space, mobility, energy, battery, etc.) are also increasing, making aerogel a more promising next-generation material. With completion of the aerogel plant in Dangjin, LG Chem plans to step up as the global mecca of eco-friendly materials and lead the universal objective – sustainable development and carbon neutrality.

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There are countless cases where LG Chem put customers first and dealt with their inconveniences. ‘We Hear from Our Customer’s Shoe�?is a new series through which we look at the cases of improving customer complaints and how we solved them. Today, we invite Specialist Eom Yoon-sik, representing the foreign sales team of LG Chem’s Life Sciences Company. Specialist Eom will introduce a specific troubleshooting case related to Euhib, a vaccine that prevents cerebral meningitis.

Hello! Please introduce yourself and the product you’re in charge of.

Hello! I’m Eom Yoon-sik from the foreign sales team of Life Sciences Company. I’m in charge of Euhib, a vaccine that prevents invasive diseases (cerebral meningitis, etc.) caused by type B hemophilus influenza. These diseases can attack various organs of a human body, and the most common types are cerebral meningitis, epiglottitis, pneumonia, pyogenic arthritis, and cellulitis, which bring symptoms such as fevers, headaches, and chills.

In Korea, newborn babies take a mixed vaccine (combining more than two types of vaccines) for cerebral meningitis, along with DTaP and polio, at 2, 4, and 6 months after their birth. After that, they must take a single cerebral meningitis vaccine again between 12~15 months. Euhib is the single vaccine injected at the latter stage. Without Euhib, infants in their 12~15 months wouldn’t be able to get their vaccine to prevent cerebral meningitis.

Euhib is an essential vaccine to protect our children from cerebral meningitis,
but I heard its production was at risk of ceasing.

Euhib was a part of NIP (National Immunization Program), a vaccination supporting project run by the Korea Disease Control and Prevention Agency (KCDC). However, with decline of the birth rate and the low purchase price despite increasing production costs, there was concern of a huge deficit. We were skeptical whether we could continue its production.

It was such a bad time that the production could have been stopped at any time, and I’m sure the KCDC had concerns about it. Yet, we firmly believed in continuing the production of Euhib amid the uncertainties. This is because, without Euhib, there would be no other single vaccine to protect infants from cerebral meningitis. It was the sense of duty that pushed us to carry on with producing Euhib. LG Chem is a company connecting science to life to bring a better future for humanity. In the same way, Life Sciences Company pursues ‘science and innovation that save lives.�?Putting this mission at our core, we try to make choices from our customers�?perspectives, and to benefit the society, humanity, and future, rather than focusing on the short-term gains.

Fortunately, you found a way to solve the production issue.

Communicating steadily with the KCDC about this situation definitely had its effect. The main problem was the low purchase price and high production cost. We tried to put on our customers�?shoes and maintain transparent communication with the agency. Through a long-term discussion, we could understand the difficulties faced by the agency and suggest an optimal solution that would help our customers. As a result, we succeeded in raising the purchase price gradually until it met our target. At the same time, we also pondered on ways to lower the production costs. We found the solution by visiting hospitals and directly hearing from our customers.

As we talked to the workers in charge of the actual vaccination, we learned that biopharmaceuticals like vaccines require cold storage at 2-8�? This was a sensitive issue, since failing to keep the appropriate temperature would result in expiration of the whole stock. Our customers appealed to us that it’s inconvenient to store the bulky Euhib in the limited space of the cold storage. The previous packaging contained 10 injectors and 10 bottles of Euhib, and the volume of the package had to be huge. Most of the customers I met talked similarly of the inefficiency of this packaging. To get rid of the inconvenience experienced by customers, our marketing team, along with the production and regulatory affairs department, began discussing and pondering over the matter. Eventually, we developed an individual packaging which is half the volume of the previous packaging. During this process, we also tried automating the packaging, cutting down the production cost by 20%. Meanwhile, the KCDC contributed by gradually raising Euhib’s purchase price, forming an environment where we can product Euhib steadily.

It must have been a special experience for you.

At first, I only thought of it as an activity to improve our business performance and keep producing Euhib. But as I look back on the experience, I realize that the answer came from our customers. Mitigating our customers�?inconvenience naturally led to an improvement in our business situation, which was a whole-new experience. On top of that, we used to feel nervous that infants born in Korea would no longer have a vaccine for cerebral meningitis, but now I take pride in being able to provide Euhib to them.

How do we think from the customers�?shoes?

It’s important to meet the customer in person to hear and feel their difficulties. When you try to listen to your customer actively, rather than passively, you can experience and empathize with their inconvenience yourself. This way, you can catch what challenges they were facing. The case of Euhib particularly left me with a lesson that mitigating our customers�?inconvenience naturally leads to a solution to our own problems.

What are your future hopes for Euhib?

Euhib may not be the greatest delicacy, but it is a product as essential as salt. I hope this single cerebral meningitis vaccine can be a product that consistently contributes to infants�?health. Euhib changed my view about working, as well. As we pursue our career, there comes a time when we jump over a barrier that we thought we would never overcome. To me, accomplishing Euhib’s management goal was such an experience. And there’s no way I could have done it alone. It was thanks to the customers who gave us frank feedback on the current issue, and related departments who openly-listened to the complaints and worked to solve them together. I would like to express my gratitude for those customers and my co-workers for overcoming the barrier together. Well done and thanks to everyone!

How did you like the story of Euhib, the case of making high business performance by improving customers�?inconveniences? We hope Euhib will give steady help to infants�?health and be cherished for a long time. We will come back with another case-story of LG Chem as we put customers first and deal with their inconveniences.

The post Defending Euhib, a single vaccine for cerebral meningitis �?We Hear from Our Customer’s Shoe appeared first on LG Chem Blog.

There’s a change of wind in the battery industry. Consistent efforts are being made to overcome the weaknesses and limits of traditional batteries. ‘FOCUS ON�?takes a close look at one product at a time. Today’s focus will be Single-Crystal High-Nickel Cathode, which is gaining recognition as a next-generation battery material with improved battery capacity, lifespan, and production costs.

Cathode is the energy source of a lithium-ion battery, which determines the efficiency and capacity of a battery. To learn more about cathode, refer to the ‘LG Chem, a leader in the market for battery materials! Find out how the company built a plant to produce 120,000 tons of cathode materials each year�?/a> content.

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First founded in 1971, the World Economic Forum (WEF) is a platform where global leaders and experts gather to discuss global issues. Also known as the Davos Forum, named after the town in Switzerland where it is held, the forum seeks to improve the world by engaging leaders of society from politics, business, and academia, to shape global, regional, and industry agendas.

This year, LG Chem CEO Shin Hak Cheol was formally selected as a member of the WEF’s International Business Council (IBC*), after receiving official invitations from both the Board of Directors and the Executive Committee. At this year’s forum, held from January 15^th to 19^th, CEO Shin met with global clients and partners to discuss collaboration strategies for managing the global supply chain, and potential solutions for overcoming the climate crisis. In addition, as a global leader in the chemical industry, he authored an article that reflects on the changes in the industry and its future. Today, we present his insights into 2023 and the outlook for 2024.

*IBC (International Business Council): A consultative body composed of approximately 100 representatives from various sectors of the economy. It is recognized as an advisory body driving the World Economic Forum and a gathering of the most influential leaders in the economic sphere.

Looking back on 2023

Recently, the IMF announced the global economic growth rate to be 3% for 2023. The global economic downturn continues, even though many countries declared an end to COVID-19 in the first half of 2023. The post-pandemic global economy is still falling short of pre-pandemic levels.

And this is just a sliver of a complex and rapidly changing external environment, which we have not seen in the past decades. Inflation, geopolitical conflict, and a deepening climate crisis are constantly looming as threats to the world. All this made 2023 a difficult year for companies in the sector.

Trouble trio: Low growth, high inflation, high interest rates

The global economy was predicted to recover in the first half of 2023 since the pandemic was finally over and China’s post-pandemic reopening was expected to boost consumption growth. We see now that China’s reopening didn’t have a significant effect on the world economy, and that the global economic downturn seems to continue, with a worsening real estate crisis and manufacturing slump. Even though interest rate hikes continue in the US, inflation has not been resolved. It seems likely that the triple whammy of low growth, high inflation, and high interest rates will be ongoing.

In this context, chemical companies are finding it difficult to recover their operation rates due to sluggish consumer demand and have difficulty finding operation cash due to high interest rates. The response? Pre-emptive downsizing of assets that are less competitive and have uncertain future growth potentials. We saw a few of these moves in 2023.

Turning global supply chains into localized operations

We witnessed geopolitical conflicts intensifying around the world and saw prices of many raw materials soaring due to regional geopolitical and geoeconomic disputes �?from oil and natural gas, through agricultural products, to key minerals. This is in parallel to an accelerated restructuring of global supply chains which has been illustrated as a resilience-building move.

Incentive programs and/or regulations announced in the US and Europe such as Inflation Reduction Act (IRA), Creating Helpful Incentives to Produce Semiconductors and Science Act (CHIPS), and the Critical Raw Materials Act (CRMA) have been rolled out to foster domestic industries. In response, China has implemented export controls on key minerals such as gallium and germanium and is actively pursuing local investment to boost internal demand and build a self-reliant supply chain. Of particular interest is the aggressive expansion in the petrochemical industry pursued by China to increase its self-sufficiency rate in base oil which, for example, is expected to exceed 100% in basic oil within the next 2-3 years.

In response to measures understood as protectionist and the fencing of economic blocs, companies re-examined their strategic directions, especially global supply chain strategies. Their continuous review of risk hedging strategies through establishing various partnerships or localization has seen a boost through 2023.

ESG and sustainability under threat

Through 2023 there were signals of Environmental, Social, and Governance (ESG) and the broader sustainability agenda partially losing momentum due to the global economic turndown. For example, last summer Italy, Portugal, Slovakia, Bulgaria and Romania called for postponing the retirement period for internal combustion engine vehicles from 2035 to 2040, while regulations on carbon emissions kept advancing towards their standardization in major economies such as the EU and the US. Consumers were increasingly vocal about the environmental sustainability performance of products and practices in their daily lives.

Nevertheless, 2023 brought the industry to a new level in regulation for sustainability with (for example) the announcement of ISSB* sustainability disclosure standards and its inclusion of Scope 3 emissions. This entails companies disclosing not only direct or indirect emissions (Scope 1 and 2), but also Scope 3 emissions (all carbon emissions excluding indirect emission sources corresponding to Scope 2). It marks the first time that major global standard-setting bodies have demanded Scope 3 emission reporting, setting a precedent for other institutions or regulatory programs to follow suit. The CBAM**/EU Battery Act also brought an expanded scope of carbon emissions management by subdividing carbon emissions regulations down to the product level. Regulations on recycling have expanded to include the mandatory use of Post Consumer Recycled (PCR) and the introduction of a plastic tax.

In the new(ish) context defined by 2023, companies declare carbon neutrality goals and find themselves more self-reliant in achieving them. Their responses are now pointing at re-establishing business portfolio strategies to align with demands for increased ESG and sustainability. What is different? The need to balance them with “growth�? This balancing act has become a delicate management challenge and will continue to be so for the foreseeable future.

*ISSB: International Sustainability Standards Board
**CBAM: Carbon Border Adjustment Mechanism

Accelerating electric vehicle expansion

The expansion of electric vehicles (EVs) has become an unstoppable trend. Major regions and countries, including the EU, the US, and China are announcing bills banning the internal sales of combustion engine vehicles. These are illustrations of how market dynamics, policy action, and megatrends couple to fuel innovation and investment.

According to a report by the International Energy Agency (IEA) released earlier this year, EV sales in 2023 are expected to be about 14 million, an increase of 4 million compared to the previous year. This is about 18% of the total vehicle sales. The EV market is expected to grow even more rapidly as technology develops since the market will reach the volume segment in the coming years. The proportion of EVs is expected to expand to 50-55% by 2030. In this way, the transition to eco-friendly energy will be gradually accelerating, while the demand for mobility oil will be decreased, making the peak oil* visible. Although the growth rate has moderated in 2023 due to consumers’ appetite for more affordable volume-segment EV options and high-interest rates, this seems to be a temporary moderation in growth rate and the overall trend will not fundamentally change.

*Peak Oil: The point at which oil production reaches its maximum level. After reaching the peak of oil production, there is a rapid decline.

A defining moment

One change process with great impact on the industry has gained traction in 2023, partly in response to the above fundamental changes in the business environment: oil majors and oil refineries expanding their businesses into their adjacent downstream area (petrochemicals). Competition within the chemical industry is intensifying especially in basic building blocks pushing further traditional chemical companies into seeking high growth/high added value to secure a competitive edge.

Each of these external environmental changes is serious enough to have a significant impact on business, and they are occurring simultaneously. With the current economic situation worsening the business environment for companies, even the most competitive companies may face a serious crisis if they do not accept changes and boldly approach them in new ways.

In the end, companies have two options for survival: to overcome or to accept the current crisis. This is a difficult situation for everyone, but also an excellent opportunity to improve corporate value and grow further, for those who continuously implement differentiated strategies for the future.

Today, we delved into the shifts and prospects of the chemical industry as envisioned by LG Chem CEO Shin Hak Cheol. 2023 posed various challenges for the chemical industry. However, amidst economic uncertainties, climate change, and sustainability regulations, new opportunities emerged. Even in these challenging times, LG Chem remains committed to preparing for the future with flexible strategies and differentiated approaches, striving for sustainable growth.

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Until the joyous arrival of a new life, the journey to parenthood may demand extra effort for some. LG Chem is here to support couples struggling with infertility until the cherished moment of new life comes. LG Chem’s Specialty Care business department, under the Life Sciences company, carries out their business covering 3 disease areas. Infertility (From pregnancy to delivery), Vaccine (Compulsory vaccinations after delivery), and Growth Hormone. These 3 areas can be considered as one big cycle, from pregnancy to the baby’s growth. Today, we introduce the starting point of this cycle, which is the infertility treatment.

You do not fight infertility alone.

Countless couples around the world suffer infertility. According to the <Infertility Prevalence Estimates, 1990-2021> published by WHO in April 2023, about 17.5% of adult population have experienced infertility in their lives. As WHO defines, infertility is a disease that causes failure of pregnancy after 1 year of regular, unprotected sexual intercourse. Infertility affects not just the couple, but also the families and local society around them. Along with low birth rate and aging, infertility is perceived as no longer an individual problem but rather a social one. With the rise of infertile population, the global infertility treatment market is also expecting a rapid growth. According to Markets and Markets, the sales of global infertility treatment market was estimated at $1.5 billion in 2021, and is expected to grow at average 8.1% per year until it reaches $2.2 billion in 2026.

The price of medicine varies by country; thus the market size is estimated by the number of In Vitro Fertilization (IVF) treatment cases. In 2019, about 3 million cases were reported around the world. 39 European nations took up 30% of the total cases, another 30% reported in China, followed by 25% in America and Japan, and the remaining 15% came from other nations. As of 2023, LG Chem is carrying out direct and indirect infertility treatment business in 15 countries including Korea.

Follitrope, LG Chem’s infertility treatment

In 1993, LG Chem marked the start of their business by launching 2 types of infertility treatment. At that time, there was a challenge of converting complex protein into the form of medicine, and only 2 to 3 companies in the whole world could develop or produce infertility treatments. Even now, considering that only 3 global companies are developing and supplying infertility treatments, we can assume that LG Chem had a high level of R&D capacity from the initial stage of the business.

Since launching the first treatment, so far LG Chem has launched 7 products. In 2021, Follitrope, the company’s key brand, completed its registration and began its sales in China, who occupies 30% of the global infertility treatment market. Follitrope is a Follicle-Stimulating Hormone (FSH), which induces superovulation to develop numerous follicles. Currently, Follitrope is preparing to accelerate its growth in the Chinese market, through activities including academic marketing such as clinical research and reinforcing networks with the local Key Opinion Leaders (KOL).

Constant strengthening of business competence

To strengthen their infertility treatment business competence, LG Chem is enlarging their portfolio to meet the latest treatment trends and also attempting overseas expansion.

Under the infertility sector, where the company is currently focusing on, LG Chem intends to provide a Total Solution to customers by enlarging their portfolio. IVF treatment includes injection of various medicines within a short period of time. In the past, the biggest purpose of this procedure was to collect numerous eggs, and medicines were used mostly to induce superovulation. Later, researches proved that implantation of fertilized eggs and pregnancy maintenance were also important factors of a successful pregnancy, which led to rapid development and use of related medicines. In line with such latest treatment trends, LG Chem has started R&D in order to expand and strengthen their portfolio, not just focusing on superovulation but also to include pregnancy maintenance. Furthermore, the company is improving the usability and safety of existing products, as well as improving the production·quality. LG Chem plans to enter the Korean market in 2025, and proceed to advanced markets including the United States.

Leap to be a Global Top Player in Women Healthcare

LG Chem is examining ways to enhance their Global Market Presence, not just strengthening the competence of their existing business but also preparing for the future.

LG Chem intends to strengthen the existing products and portfolio within the infertility treatment sector, and keep enlarging the business. Based on this, the company has set up a long-to-mid-term vision of expanding their business into Women Healthcare, and entering global advanced markets including the United States. Women Healthcare is a broad field which covers various diseases across women’s whole life cycle. Based on the connectivity with LG Chem’s existing infertility business and needs of patients and specialists, the company has set the direction of expanding their business targeted at uterine diseases. Since there is no treatment that directly targets at uterine diseases, and the global demand for such a treatment is high, LG Chem’s move is expected to have positive impacts on the market.

In 2023, LG Chem received advice from experts and carried out Scrum activities for 4 months with the research center and 12 teams from the relevant departments. This was to explore candidate products that can drive future growth. The company excavated 9 tasks under 3 main categories �?“Develop products with improved performances,�?“Develop/introduce treatments targeted at causes of diseases,�?and “Develop innovated medicines that can suggest new treatment directions�?�?and is establishing plans to get these tasks into action successively.

Through this year’s Scrum activities, LG Chem learned that the company’s directions reflect the needs of medical specialists, and confirmed the possibility of realizing those plans based on their research capacities. During the discussion, specialists expressed their high expectation for LG Chem, with comments such as, “We could see that LG Chem is not confining themselves to the existing market, but differentiating their directions and goals in depth,�?or “LG Chem is different from other companies.�?Hearing customers�?high expectations led to higher motivation and a strong sense of duty.

LG Chem is preparing to take a leap as Global no.1 company in Women Healthcare. Until our plans are implemented and realized, we will keep up the efforts to make better lives for our customers, based on our technology and sense of duty.

*This article is a contribution from Choi Seong-deok (Leader of Marketing 3 team of Specialty Care).

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The new year has arrived. While economic prospects of 2024 look as dim as last year, sustainability once again appears as the challenge faced by corporations. As we greet the year, each company has set goals for an economic take-off and presented their New Year’s address. On 2^nd of January, LG Chem announced their annual message. What are LG Chem’s goals in 2024? Let’s scope out what the company is looking forward to in the coming year.

2024 is the year of execution.
Find opportunity from the complexity to take a new leap!

While the domestic and foreign environments back in 2023 were not very favorable, LG Chem turned this crisis into an opportunity and sought differentiation from their competitors by facing up to the reality and taking countermeasures to overcome it. The company established future strategies centered on their new growth engines announced in 2021: eco-friendly materials �?battery materials �?global new drugs. Now, it’s time to put these strategies into action and proceed. LG Chem thereby declared 2024 to be ‘the year of execution�?and plans to leverage the rapidly changing business landscape as an opportunity for differentiation. Following are LG Chem’s core tasks in 2024.

Until last year, LG Chem made major improvements in terms of manufacture efficiency and cost of poor quality. In 2024, the company seeks to expand this movement, applying emergency management system to non-manufacturing sectors and all global business sites. Another area of focus will be innovation based on digital transformation (DX). Despite the challenging business environment, the company is also determined to maintain their financial solvency, while pushing ahead with investments for the development of new growth engines. The depression in domestic and international environments are expected to continue on to 2024, and we are confronting difficult situations in all business sectors. However, LG Chem will face up to the reality and execute their business strategies to overcome the hardships.

2024 as the year of execution based on new growth engines!

To leverage 2024 as the year of execution, LG Chem plans to accelerate promotion of their business based on the new growth engines. In December 2023, the company broke the ground for America’s biggest cathode materials plant as a part of their battery materials business. The cathode plant under construction is located in Tennessee, the United States, and is expected to provide an annual production capacity of 60,000 tons. This corresponds to 600,000 high-performance pure electric vehicles (mileage of 500km), making it the largest scale of cathode plant ever built within the country. Furthermore, in July 2021, LG Chem launched their comprehensive eco-friendly materials brand, LETZero, keeping up with their research for materials that benefit the environment. The company will continue their efforts to reform themselves into a decarbonized business, and proceed to become a sustainability-leading company through management of air/water pollutions and turning waste landfill to zero.

LG Chem, amid the pandemic crisis, was selected two-years-in-a-row for the third highest brand value among global chemical companies. In 2024, we are expecting the same challenges in domestic and international environments. As always, LG Chem will work to their utmost to seek chances out of difficulties. Please keep your support for LG Chem in 2024.

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What does your year-end look like? Some people write their resolutions in a new diary, while others flip through the old one to wrap up the past year. Looking back can be as important as looking ahead. That’s because we learn our lesson by tracing our footprints and prepare for a greater leap towards the future.

For LG Chem, 2023 has been the year of transformation focused on their three new growth engines. Since announcing the three new growth engines (eco-friendly materials, battery materials, global innovative new drugs) in 2021, LG Chem has been focusing on these keywords to rapidly restructure their business portfolio. Within the ‘eco-friendly material�?sector, the company moved swiftly to produce sustainable materials, seen by the establishment of supercritical pyrolysis oil plant, commercialization of bio-plastic technology, and launch of new compostable plastic products. As for the ‘battery material,�?LG Chem set the sales goal of USD 25.5 billion by 2030 and had major accomplishments including mass-production of high-nickel cathode materials and development of a material which delays battery thermal runaway. The global new drug sector also made a surprising announcement by acquiring AVEO, a US-based pharmaceutical company centered on anticancer treatments. This showed LG Chem’s strong determination to target at the America, the world’s largest anticancer market.

What happened at LG Chem in 2023? Let’s review 12 major news stories that filled LG Chem’s year.

LG Chem CEO Hak Cheol Shin appointed as the chairman of
an industry council of the Davos Forum

In January 2023, LG Chem CEO Hak Cheol Shin was appointed as the chairman of ‘Chemical and Advanced Materials Industry Governors�?of the Davos Forum. As the chair of the community, CEO Shin is expected to exercise joint leadership for the industry to discuss major pending issues of the global chemical industry, ushering in coordinated response plans. This is the first time for Korean entrepreneurs to be appointed as the head of 26 industry councils under the Davos Forum.

> Click to learn more about CEO Hak Cheol Shin’s appointment as the chairman of industry council of the Davos Forum

Completes acquisition of AVEO,
an oncology-focused biopharmaceutical group based in the U.S.

On January 18^th, LG Chem successfully completed the acquisition of AVEO, an oncology-focused biopharmaceutical company based in the U.S. AVEO is a group which has secured the core competence specialized in the anticancer treatment market, including clinical development, approval, sales, and marketing. The acquisition of AVEO will help LG Chem to target at America, world’s largest anticancer treatment market, and position the company to become one of the top global oncology companies.

> Click to learn more about the acquisition of AVEO, an oncology-focused biopharmaceutical group

LG Water Solutions wins massive seawater desalination project in Israel

On May 18^th, LG Chem was selected as the exclusive RO (Reverse Osmosis) membrane supplier for a massive seawater desalination project in Ashdod, Israel. The Ashdod project is one of Israel’s top 5 desalination plants, boasting a large scale. LG Chem plans to supply about 30,000 RO membranes, which can desalinate up to annual 100 million tons of seawater, enough to supply water to about 1.1 million people. Based on the desalination project in Israel, LG Chem intends to strengthen their leadership position in the Mediterranean market.

> Click to learn more about LG Chem’s RO membranes

Takes first step toward plastic recycling and fostering future materials

On March 30^th 2023, LG Chem held a groundbreaking ceremony for the nation’s first super critical pyrolysis oil plant and aerogel, a next-generation insulation material, plant at the Seongmun National Industrial Complex in Dangjin, Chungnam, Korea. In order to establish a plastic circular economy, LG Chem plans to invest USD 221 million (KRW 310 billion) by 2024 to construct a super critical pyrolysis plant and aerogel plant that are large enough to fit 32 soccer fields. Super critical pyrolysis technology is one of the chemical recycling methods, which breaks down waste plastics using high temperature/high pressure super critical vapor. On the other hand, aerogel is an insulation material composed of over 95% gas, which is light as air and hardly absorbs any heat.

> Click to learn more about the construction of pyrolysis oil and aerogel plants

Joins hands with US-based Gevo to expand bio-plastics

On April 13^th, LG Chem signed a joint development agreement with Gevo, Inc., a North American renewable fuel company, to commercialize bio-propylene by 2026. Gevo is an eco-friendly energy group which holds the original technology required to produce sustainable aircraft fuel (SAF) and bio-plastics using plant-based raw materials. While Gevo supplies the technology to produce propylene using bio-ethanol, LG Chem will work to commercialize the product by coordinated research & development and establishing plant facilities. This is the first commercialization effort to produce bio propylene with ETO (Ethanol to Olefin) technology.

> Click to learn more about the bio-plastic partnership with GEVO

Targets sixfold sales growth in battery materials to USD 25.5 Billion by 2030

On May 16th, LG Chem CEO Hak Cheol Shin gave a keynote speech at the Bank of America (BofA) 2023 ‘Korea & global EV/EV battery conference,�?revealing the company’s aim to grow their battery materials sales sixfold by 2030 from USD 3.9 billion (KRW 4.7 trillion) in 2022 to USD 25.5 billion (KRW 30 trillion) by 2030. As battery materials show sharp growth of about average 26% per year, LG Chem intends to focus their efforts on fostering these materials to leap as a global top comprehensive battery materials company.

> Click to check out LG Chem’s blueprint to become a top battery materials company

Speeds up expanding in global CNT market

On May 31^st 2023, LG Chem started construction of their fourth carbon nanotube (CNT) plant at Daesan complex, Chungnam, Korea. CNT is a next-generation material receiving spotlight for its application in batteries and semiconductors, featuring excellent electricity/heat conductivity and solidity. LG Chem’s CNT 4 plant is slated for operation in 2025 and will contribute to doubling LG Chem’s annual CNT production capacity to 6,100 tons. By expanding the CNT production capability, LG Chem will occupy their leadership in the rapidly-growing global CNT market, focused on battery materials.

> Click to learn more about CNT, LG Chem’s future prospect

Starts mass production of ‘high-nickel single-crystal cathodes�?/h2>

In June 2023, LG Chem began mass-production of next-generation ‘high-nickel single-particle (single-crystal) cathodes�?for batteries at their cathode plant in Cheongju, Korea. Single-particle cathode refers to a one-body material made by combining nickel, cobalt, manganese, etc., which is a core factor that affects the lifespan and capacity of a secondary battery. Since 2021, LG Chem has been carrying out research of this material as a solution to battery gas, which was the biggest pain point their customers experienced. High-nickel single-particle cathode is thereby gaining spotlight as an innovative game changer of the battery materials market.

> Click to learn more about LG Chem’s high-nickel single-particle cathodes

 

Spurs launch of COMPOSTFUL�? their compostable plastic products

LG Chem launched COMPOSTFUL�? a compostable material solution which breaks down naturally within 6 months~2 years under specific conditions. COMPOSTFUL�?is a compound word of ‘compost�?and the suffix �?ful,�?which means ‘full of~.�?COMPOSTFUL�?has received certifications from global authentication authorities such as DIN CERTCO, TUV OK Compost, and BPI, for its compostability, and its quality is now widely recognized. Starting with production of 3,000 tons of prototypes in 2023, LG Chem plans to expand the annual production of COMPOSTFUL�?to 50,000 tons by 2024.

> Click to learn more about COMPOSTFUL�?products

Inaugurates European customer solution center in Germany

On September 13^th 2023, LG Chem opened a European Customer Solution (CS) Center in Frankfurt, Germany. CS Center is a professional organization which provides comprehensive technology solutions on product development, quality improvement, and productivity enhancements, etc., to the customers and partners of LG Chem. LG Chem European CS Center plans to procure technological capabilities in not only automotive materials required by European customers, but also the processing technology for eco-friendly materials such as recycled plastics. Furthermore, LG Chem will station professionals specialized in such technologies to provide customers with a wholehearted technical assistance.

> Click to learn more about LG Chem’s opening of European CS Center

Explores possibility to establish a next-generation bio-oil (HVO) plant
with Italia-based ENI

LG Chem explored the possibility to establish a next-generation bio-oil (HVO) plant in Daesan complex, Chungnam, Korea, by joining forces with ENI SM (Sustainable Mobility), Italia’s largest government-operated energy group. ENI SM, a subsidiary of ENI, is a company that carries out an eco-friendly fuel business centered on hydrotreated vegetable oil (HVO). HVO is a next-generation bio-oil produced by adding hydrogen to plant-based raw materials such as waste cooking oil. With the establishment of a joint corporation, LG Chem will be able to internalize HVO to secure the basis to supply raw materials needed for production of bio materials such as bio-circular balanced SAP, ABS, PVC, etc.

> Click to see shorts of joint HVO plant with ENI

LG Chem-LX Hausys develop a material that delays battery thermal runaway

LG Chem cooperated with LX Hausys to develop a material that delays battery thermal runaway, which withstands flame at 1,500�?for over 20 minutes. The special flame-retardant CFT can withstand strong flame and high pressure for 14 times longer duration than existing composite materials. Applying this material is expected to delay battery thermal runaway, a major factor of fires caused by batteries, and contribute to the development of much safer electric vehicles.

> Click to learn more about the material that delays battery thermal runaway

Have you enjoyed the 12 news stories of 2023 LG Chem? This year, LG Chem carried out various actions focused on the new growth engines, and made progress in their journey toward sustainability. As a global science company leading sustainability, LG Chem is poised to make significant strides in 2024. Look forward to the progress!

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LG Chem is practicing carbon neutrality by leading the development of eco-friendly materials. In 2023, the company continued their actions to cut down carbon, such as producing eco-friendly raw materials and introducing innovative processes. On March 30th 2023, LG Chem held a groundbreaking ceremony of ‘supercritical pyrolysis oil�?and ‘next-generation insulator aerogel�?plants within the Seongmun National Industrial Complex in Dangjin, South Chungcheong Province, Korea, as an effort to establish a plastic circular economy. By doing this, the company aims to develop next-generation materials that utilize recycled resources across their whole process, from raw material to product and distribution. Until 2024, LG Chem plans to invest $238 million (KRW 310 billion) to construct a supercritical pyrolysis oil plant and aerogel plant within the Seongmun National Industrial Complex, which will stretch over 240,000�?(the size of 32 soccer fields), as a part of their investment in eco-friendly future business. Let us introduce Dangjin plant, as LG Chem prepares for a sustainable future.

Korea’s first application of supercritical pyrolysis technology!
Taking one step closer to carbon neutrality with pyrolysis oil plant

A well-known method of recycling plastic is ‘mechanical recycling,�?which crushes plastic to reform it as a raw material. However, mechanical recycling cannot process all plastics. To compensate this limitation, ‘chemical recycling�?was developed. To put it simply, chemical recycling uses pyrolysis or chemical reactions to break down plastic, and synthesize it to create a new chemical material which is then reused for various purposes. This method is recognized as an eco-friendly way of reducing plastic wastes and heightening the possibility of resource maintenance and regeneration.

After long research, LG Chem overcame the challenges and succeeded in developing the ‘supercritical pyrolysis technology.�?As an example of a chemical recycling method, this is a technology of breaking down waste plastics by utilizing high-temperature/high-pressure supercritical vapor. You can put plastics that are unable to process by mechanical recycling in a high-temperature container, heat them up, and filter out any contaminant from the liquid and gas attained from this process. This yields pyrolysis oil, a raw material that can form brand-new plastics.

Using the supercritical pyrolysis technology enables recycling of composite materials (OTHER), such as snack wrappers, vinyl wrappers for precooked rice, and delivery containers, that had limitations in traditional recycling methods. The pyrolysis oil obtained through this technology does not affect the physical properties of the final product, therefore is applicable to all products. By recycling vinyl and plastic waste using the supercritical pyrolysis technology, we can convert 8 tons out of 10 tons of waste plastics into a recycled raw material, and the byproduct gas released by the remaining 2 tons can also be reused as an energy to operate the plant, such as in producing supercritical vapor. LG Chem’s Dangjin plant in South Chungcheong Province, Korea, is the first domestic supercritical pyrolysis plant to be built, and is expected to be equipped with productivity that will top the industry. Here, LG Chem plans to produce annual 20,000 tons of waste plastic pyrolysis oil.

LG Chem’s in-house developed aerogel steps up as a next-generation material!

Aerogel, gaining attention as a next-generation material, is composed of over 95% gas. It is light as air, and hardly absorbs any fine particles or heat. With high heat-resistance and low density, it has been often used as a thermal-resistant material in the aerospace industry. Recently, it is also receiving spotlight as an insulator, as it can minimize thermal loss when used in plumbing or other facilities in industrial sites. Furthermore, it can also be used in the transportation · storage of liquid hydrogen, a type of eco-friendly energy, or thermal shielding in batteries. In short, the demand for aerogel is rising across various industries, including electronics, building materials, and medical fields. Since 2013, LG Chem has been carrying out the research and development of aerogel, and applied for over 100 patents. In 2024, the company has scheduled to construct an aerogel plant in Dangjin, and begin commercialization of the product.

LG Chem leads the future business through production of pyrolysis oil and aerogel

In the global chemical recycling market, the use of pyrolysis oil (extracted from waste plastic only) is expected to rise by annual 19% to reach 3.3 million tons in 2023. Along with it, the demand for aerogel keeps increasing, and prospects are that it will grow by an average of 30% every year. Starting from the groundbreaking of pyrolysis oil and aerogel plants in Dangjin, LG Chem intends to expand their eco-friendly and next-generation business to a larger scale. Please look forward to LG Chem as they take steps towards carbon neutrality!

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Have you heard of Global Customer Solution (CS) Center? CS center refers to an organization which specializes in customer support, providing a comprehensive technical solution to LG Chem’s customers and partners on product development, quality improvement, and productivity improvement, etc. LG Chem has established CS centers around the globe in order to offer a closer customer-tailored service. Learn about LG Chem’s Global CS Center and the role it plays in the company.

What is LG Chem’s Global CS Center?

LG Chem’s CS Center is a specialized organization which provides a comprehensive technical solution to customers and partners on product development, quality improvement, productivity improvement, etc.

In 1995, LG Chem established their first CS Center within Korea’s Daejeon Technology Research Center. With the know-how for customer technical support accumulated for over 27 years, LG Chem moved their CS Center to Osan, Gyeonggi Province, Korea, in 2019, which actively operates until today. Osan CS Center is responsible for listening to customers�?pain points, making improvements to raise the credibility, and providing technical support to customers. Besides that, CS Center can also recommend products and recipes that suit customers�?needs. Plus, they support customers with quality analysis, process optimization, and new product development, etc. to improve the overall completeness and productivity of customers�?products.

In 2015, LG Chem established Huanan CS Center in Guangzhou, Guangdong Sheng, and Huadong CS Center in Wuxi, Jiangsu Sheng to extend their customer support service across the Chinese region. In particular, Wuxi boasts an excellent environment that has been selected as China’s Top 10 Economically-vital cities. Many global companies are situated in the city, which makes it just the right location for LG Chem’s CS Center to place in. Now, LG Chem CS Center is playing a key role in the Chinese market.

Opened European CS Center in Frankfurt, Germany,
known for convenient transportation and customer adjacency

In September 2023, LG Chem opened a European CS Center in Frankfurt, Germany. Beginning its construction in September 2021 with investment of KRW 50 billion won, the European CS Center has three ground floors and the size of approximately 7,400�? It holds state-of-the-art facilities such as extrusion and injection devices that can support customers�?production. Along with automotive materials, the main customer in the European market, LG Chem plans to secure processing technologies for eco-friendly materials such as recycled plastic, and staff with professionals to provide technical support to their customers.

Since LG Chem made their entry in 2005, the European market has increased its sales by over 100 times as of last year, stepping up as the main market. With the opening of European CS Center, LG Chem plans to set a customer response base in Frankfurt to provide on-site technical solutions and raise their position in the European market.

A quadrilateral customer service system
that connects Korea, China, Europe, and America

Currently, Osan CS Center takes care of technical support centered on domestic and global customers, and is focusing on developing future processing technologies. Huanan and Huadong CS Centers are striving to improve the technology of Chinese customers, revitalize the Chinese economy, recruit excellent talents, and encourage mutual growth between the company and the region. Frankfurt Center boasts an excellent environment as the hub-city of Middle Europe, proven by its convenient transportation and customer adjacency. With LG Chem’s European Sales office located in the same city, the company is expecting a synergy effect in customer support that the newly-established European CS Center will bring about.

The U.S. CS Center scheduled to open in the state of Ohio is expected to offer convenience in logistics and transportation. Its location is close to LG Chem’s major customers of ABS used in automotive components and materials for building �?decorating. LG Chem hopes to raise their position in the North-American market and reinforce their on-site customer response.

With the opening of European CS Center, LG Chem is looking forward to establishing a customer support system that connects Korea (Osan), China (Huanan, Huadong), and Europe (Germany). Furthermore, U.S. CS Center in Ohio is due for establishment by 2023, which will complete LG Chem’s close-up customer support network across the globe. LG Chem will not stop at entering the global market, but expand their customer-tailored technical support for global customers. Stay with LG Chem as they take one step further!

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The Earth is on the brink of unprecedented crisis. UN secretary general Antonio Guterres said in his speech, “The era of global warming has ended; the era of global boiling has arrived,�?urging the world to respond to the matter. This is a time when our collective efforts are needed more than ever. As climate crisis deepens more, let’s take a look at how LG Chem is approaching to the sustainability of our Earth.

In 2020, LG Chem established their Sustainability Strategy with the goal of ‘Providing innovative and distinguished sustainability solutions for the environment and society.�?Since then, the company has derived 5 major tasks from the sustainability strategy (e.g. responding to climate change and developing a responsible supply chain) and been taking various sustainable management actions. In order to communicate clearly about LG Chem’s sustainable business activities and performances with different interested parties, the company has been publishing a Sustainability Report on a yearly basis. The 2022 Sustainability Report <RE:ACT TO ZERO> is LG Chem’s 17^th issue of the report, introducing the company’s sustainable management strategies as well as the key performances and future plans within the ESG (Environment, Social, Governance) sector. Furthermore, this report addresses LG Chem’s efforts to set up a decarbonized supply chain ecosystem connecting ‘Suppliers-LG Chem-Customers.�?Let’s take a look at the details of LG Chem’s efforts depicted in 2022 Sustainability Report, <RE:ACT TO ZERO>!

Environment, fulfilling our responsibility for the Earth

2050 Net-Zero Roadmap

LG Chem has concretized a roadmap to achieve Net-Zero by 2050 by building detailed plans for each category of carbon reduction. The company’s devotion to eco-friendly business management can be seen in the introduction of carbon management system to track down and manage the amount of carbon emissions, and the switch to sustainability-centered business portfolio.

Renewable Energy Procurement

LG Chem declared their commitment to source 100% renewable energy at overseas business sites by 2030 and domestic business sites by 2050. The key factor to realize this goal is procuring sufficient renewable energy supply. LG Chem is thereby taking various measures to secure renewable energy for their overseas sites. As for domestic sites, the company has signed a long-term contract with an energy provider. Thanks to these efforts, LG Chem recorded 11.6% of renewable energy transition rate including all business sites, and 7 global sites have already achieved 100% transition to renewable energy.

Transition to Eco-friendly Fuels

LG Chem is passionate about introducing eco-friendly fuels to cut down greenhouse gases! Aiming to start operation in 2026, LG Chem intends to invest $2.5 billion (KRW 3.2 trillion) in Hwachi plant, Yeosu, Korea to establish a biomass energy plant. The new plant will mass-produce industrial steam electricity using waste wood, which is expected to reduce 99% of greenhouse gases compared to coals. With completion, LG Chem will be able to cut down annual 400,000 tons of carbon.

Zero Landfill at Production Sites

How can we make waste from production sites Zero(0)? LG Chem set up a strategy to reduce and recycle the incineration and landfill waste. As a result, a total of 3 business sites in Iksan and Naju of Korea and Quzhou, China obtained Zero Waste to Landfill (ZWTL) Certification in 2022 from UL Solutions, a global safety·environment certificate authority. In 2023, LG Chem Gimcheon site was added to the list.

Social, embracing diversity and reinforcing the supply chain ESG

Environmental Safety Measures at Production Sites

LG Chem hopes to build a safe workplace through solutions based on scientific technology. CSEO (Chief Safety & Environment Officer) is a newly added position which serves as a control tower for Environment·Safety·Health within the company. LG Chem also adopted ‘The Seven Safety Commandments�?to solidify employees�?basic safety compliance culture.

Workplace Diversity and Inclusion

Embracing diversity is the key to a successful business. Diversity in the organizational culture helps draw active participation and cooperation from employees, bearing innovative ideas and products. To solidify a free and communicative organizational culture, LG Chem began their ‘Speak-up Table�?program in 2019 where the CEO and employees can discuss and seek the direction of LG Chem’s future. For the past 4 years, more than 1,569 employees took part in 79 ‘Speak-up Table�?sessions and contributed to improving the organizational culture. Moreover, the company holds ‘Town Hall Meetings�?where the CEO and employees communicate about LG Chem’s strategies and business performances. These meetings record over 6,000 concurrent viewers each time.

Sustainable Supply Chain Management

LG Chem values growing with their partners and establishing a sustainable supply chain. To do this, the company conducts Supplier and ESG evaluation every year. In 2022, LG Chem carried out ESG evaluation on 762 suppliers. Among them, 17 high-risk suppliers underwent field inspection under the monitoring of a third party, through which they gained solutions for improvement. On top of that, LG Chem joined the Responsible Business Alliance (RBA) and applied the RBA standards to build a system for managing their suppliers�?ESG activities. The company shares these criteria with the suppliers, who then submit a written pledge to comply with the standards. Furthermore, LG Chem keeps close monitoring of the suppliers�?ESG risks based on the standards.

Supply Chain Decarbonization

The importance of managing the supply chain is heightening due to factors such as labor force, exhaustion of resources, anti-corruption, etc. With the tightening of global environmental regulation, the spotlight is going to the concept of ‘supply chain decarbonization.�?What are LG Chem’s efforts to establish a decarbonized supply chain?

LG Chem has completed the Life Cycle Assessment (LCA) of all domestic-produced products to measure the carbon reduction effects of each product. LCA quantitatively evaluates a product’s environmental impacts throughout its entire supply chain (from raw material sourcing to product development), encompassing all inputs, outputs, and product system. LG Chem plans to complete LCA on all products including overseas production by 2023.

Does carbon emission occur only during production? The answer is no. In fact, our entire business activities such as working out of office or using office equipment involve carbon emissions. Scope 1·2·3 is a system which categorizes a company’s carbon emissions into different groups. Scope 1 refers to direct emissions produced from the company’s own resources. Scope 2 refers to indirect emissions that occur when the company purchases and uses energy sources from another party. Scope 3 refers to all indirect emissions except Scope 2, which is the most complex concept as it includes indirect emissions from the entire value chain required to make a product.

According to the research of World Economic Forum (WEF), 61% of the total carbon emissions produced by petrochemical companies falls under Scope 3. Therefore, in order for LG Chem to strengthen their low-carbon product competitiveness, the role of raw material suppliers (Scope3 upstream) is essential. LG Chem is aware of the significance of cutting down upstream carbon emission to establish a decarbonized supply chain that connects suppliers (upstream) and customers (downstream). The company is operating ‘Scope3 LCA TF�?directly under the CEO to support the measurement and management of suppliers�?carbon emissions by each product. LG Chem plans to calculate the product carbon footprint based on the actual Scope3 upstream process data to maximize the accuracy and completeness of their LCA results, and utilize the results to strategize the establishment and operation of a decarbonized supply chain.

LG Chem does not stop there, and will take one step further to build a consistent communication system that connects Suppliers-LG Chem-Customers to share information about product carbon footprints and facilitate the establishment of a decarbonized supply chain. LG Chem intends to build a decarbonization collaboration model by distributing the PCF calculation method based on their LCA methodology and Scope3 data collection guidelines, plus actively communicating about the LCA implementation system.

Governance, an ethical and transparent management

ESG committee under the Board of Directors (BOD)

LG Chem formed the ESG committee in April 2021, aimed at internalizing ‘sustainability,�?a concept encompassing both financial and non-financial value, as the core value of the company’s growth. In order to procure LG Chem’s sustainable growth, the ESG committee deliberates on key management agendas related to ESG and reviews activities to achieve Net-zero.

Enhanced BOD diversity and expertise

Diversity, one of LG Chem’s core values, is present not just in employee demographics but also in the Board of Directors (BOD). The company appointed two female outside directors (taking up 29% of the BOD) to expand their board diversity, along with outside directors in management, industrial technology, finance·accounting, and law to strengthen their expertise.

Global Climate Partnership

To accomplish the sustainable development goal, LG Chem is expanding their global partnerships. In January 2023, LG Chem CEO Shin Hak-cheol was elected chair of an industrial consultative body at the World Economic Forum (WEF) in Davos, Switzerland, representing the chemical & advanced materials industry. Through consultation with global chemical and advanced materials companies, CEO Shin demonstrated a collective leadership to discuss key issues facing the industry, such as weakening of global supply chains and responding to climate change, etc. to prepare the countermeasures.

Enhanced Compliance Culture

LG Chem operates a systematic and unified compliance program by establishing a global compliance IT system in 2023 to support and manage compliance befitting a global science company. In addition, by establishing a self-inspection system, the company is expanding employee participation in compliance and settling compliance as a company-wide organizational culture.

Read more details on <2022 Sustainability Report>!

LG Chem is striving to establish a decarbonized supply chain to preemptively respond to the climate crisis and promote sustainable growth. In 2022, the company left meaningful footsteps through various sustainable management activities in the areas of environment, society, and governance. LG Chem will continue to actively communicate with all stakeholders and step up as a company that provides new value to customers based on science.

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From 17 to 20 April 2023, LG Chem participated in ‘Chinaplas 2023,�?held for 4 days in Shenzhen, China. ‘Chinaplas�?is one of the Top 3 global chemical industry fairs, acknowledged for its greatest scale in Asia. This year’s fair welcomed global chemical companies, along with 150 countries and approximately 3,900 businesses. It aroused unprecedented expectation and attention from many chemical companies, especially since this was the first event held after China’s blockade had been alleviated. The theme of Chinaplas 2023 was ‘A Brighter and Shared Future, Powered by Innovation,�?inviting major global chemical companies to present their eco-friendly recycling technologies. At this year’s event, LG Chem displayed over 50 types of products at a 398�?wide booth, larger than that of any other participating companies. Take a look at which of LG Chem’s materials were displayed, through a vivid scene of Chinaplas 2023 delivered to you.

Catch global customers�?eyes
with eco-friendly, recycled, future materials

The theme of LG Chem’s exhibition was ‘The New LG Chem.�?It was then, again, split into two sections; ‘Sustainability Solution & LETZero Zone,�?and ‘Future Solution Zone.�?The first section introduced eco-friendly materials such as compostable and recycled plastics. The second section displayed future materials in the solarㆍmedicalㆍbattery sectors.

First of all, the ‘Sustainability Solution & LETZero Zone�?addressed future eco-friendly technologies including PBAT (Poly Butylene Adipate-co-Terephthalate), PLA (Poly Lactic Acid), and PCR (Post Consumer Recycled) products. PBAT is a petroleum-based eco-friendly plastic that is quickly decomposed in nature by oxygen, heat, light, and enzyme reactions. It is usually found in agricultural and disposable films. PLA is a material that breaks down naturally within a few months by microbial reactions under certain conditions. It’s a popular item for food containers, straws, and PET water bottles. PCR is a recycled material obtained from waste plastics used and discarded by end-consumers, taking the form of recycled plastics such as ABS (Acrylonitrile-Butadiene-Styrene), PC (Polycarbonate), etc.

At Chinaplas 2023, LG Chem drew visitors�?attention by displaying products such as sacks made of eco-friendly and recycled plastic materials. In line with the soaring global interest and demand for eco-friendly products, LG Chem, too, is planning to develop and produce eco-friendly materials to meet customers�?needs. Already in progress is the construction of PBAT plant in Daesan, South Chungcheong Province, Korea, estimated to return an annual capacity of 50,000 tons and is due for commercialization by 2024.

At the ‘Future Solution Zone,�?LG Chem introduced POE (Polyolefin Elastomer), their high-value-added strategic material for solar panel films, CNT (Carbon Nanotube), a battery material based on the company’s proprietary technology, and NBL (Nitrile Butadiene Latex), a material applicable to medical gloves.

Among these products, the expansion of renewable energy market has brought a rise in the global demand for POE. Since 2021, LG Chem has been setting up an additional POE plant for solar panels with a production capacity of 100,000 tons. This is due to start mass-production in 2023, yielding a total of 380,000 tons, by which LG Chem will secure the world’s second-largest scale of POE production. Next, CNT is a battery material which features electricity and heat conductivity equivalent to copper and diamond, but whose strength is 100 times that of steel. It is applied to various places, for example, in a battery conductive material to smoothen the flow of electricity and electrons. By the 2nd half of 2024, LG Chem intends to expand their 4th CNT plant in Daesan, South Chungcheong Province, Korea, to secure a production capacity of 6,100 tons. The last product exhibited at Chinaplas was NBL, a synthetic rubber based on butadiene and a core raw material of nitrile gloves. LG Chem produces annual 280,000 tons and 210,000 tons of NBL in Yeosu, Korea and China respectively. Now, the company plans to invest another $143 million (KRW 186 billion) to build a new NBL plant in Malaysia by the 1st half of 2023.

At Chinaplas 2023, LG Chem took one step further from exhibiting eco-friendly and future materials to arranging a unique booth which offered visitors to experience the company’s new development of a comprehensive digital sales platform, LG Chem On. This platform provides customers with a real-time view of their purchase from orders to shipments, just like an online shopping mall. The booth was a great opportunity for LG Chem’s global partners to hear the description of LG Chem On and have a hands-on experience of the platform. Additionally, a business lounge and 7 meeting rooms were prepared for a smoother communication.

Focus on sustainable materials
in line with the global market trend of eco-friendliness

The main keywords of Chinaplas 2023 were eco-friendly material, recycle, and sustainability. Like as mentioned before, LG Chem played their part of sustainable future by exhibiting eco-friendly materials such as PBAT which decomposes at landfill within 6 months, PCR plastics, PLA of 100% bio raw material content, as well as new materials in the solar �?battery sectors.

Chinaplas 2023 showed a major shift from a traditional chemical materials-focused exhibition to an event with recycling products at the center. Visitors could feel increased attention and demands for eco-friendly and recycled materials with their skin. In line with the trend, LG Chem plans to focus more on developing eco-friendly materials and new materials. Keep supporting LG Chem while the company makes movements towards a sustainable future!

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Want to order LG Chem products? Or make an inquiry? Until now, technological collaboration with LG Chem involved various means of communication including face-to-face meetings with the employee in charge, making calls to check the delivery status, and of course, e-mails. In other words, it was somewhat cumbersome to purchase LG Chem’s products. To offer a more convenient experience to customers, LG Chem established a comprehensive digital sales platform, ‘LG Chem On.�?And working behind the scene to introduce ‘LG Chem On�?was the DCE team of DX (Digital Transformation) department. What discussions led the Digital Commercial Excellence (DCE) team to develop ‘LG Chem On?�?/p>

‘LG Chem On,�?a comprehensive digital online platform
which reflects customer needs

Hello! Please introduce the DCE team and what DX is.

•Do Hwe-gil, Specialist: Hi, I’m Do Hwe-gil, and my responsibility in DX is to establish the Digital CRM. The team name ‘DCE�?stands for Digital Commercial Excellence. We designed and introduced ‘LG Chem On�?through digital transformation of all sales activities within the Petrochemicals company and businesses to offer a smoother process for both customers and employees who are in charge of sales.

•Kim Joong, Team Leader: Hello, I’m Kim Joong, leader of DX DCE team. The team consists of members equipped with diverse work experiences in the digital transformation field, each contributing to perform the DX task. Our project is still ongoing, but I can’t feel more proud to see the accomplishments we’ve made so far.

•Shim Gyeong-min, Specialist: Hi. I’m Shim Gyeong-min in charge of DX for LG Chem’s foreign sales branches. Before I joined LG Chem, I did my master’s degree in England on machine learning. My career had been focused on DX in the production field until Kim, my team leader, offered me an opportunity. Based on my experience of managing business data, now I’m responsible for DX tasks at LG Chem’s foreign sales branches, especially those related to sales and logistics.

What exactly is LG Chem On, a comprehensive digital sales platform?

•Do Hwe-gil, Specialist: The LG Chem On website, to put it shortly, is a digital platform which surpasses the traditional method of sales that relied on face-to-face communication, and enables customers to browse LG Chem’s products simply by going on the web.  Before, customers, mostly home-appliances or automotive part producers, experienced inconvenience regarding communication, as they had to contact the LG Chem official at each stage of the process including orders, customer registrations, technological collaborations, shipments, etc. Now, LG Chem On can simplify such process.

We analyzed requests gathered from over 500 customers and established LG Chem On with focus on quick browsing of products, real-time/untact business process, and easy access to specialized information.
As you can see on LG Chem On website, the platform provides recommendations for each part, as well as the status of products available at your region. If you have a specific color of ABS in mind, you can search products by image. In short, it may occur to you that LG Chem On is an ‘online shopping mall for LG Chem products.�?/p>

•Shim Gyeong-min, Specialist: To establish the system of LG Chem On, our team collaborated with Salesforce, the US-based CRM solutions company. We’re happy to have improved the limitations in the Petrochemicals industry by setting up our system and enabling customers to check their work process in real-time. Also, this is LG Chem’s first time providing an online customer approach service, which adds meaning to our project. We hope to expand our services to making orders of products and shipments.

Any experience or case of applying DX?

•Kim Joong, Team Leader: Last year, we carried out a project to change the logistics process for LG Chem employees in Germany. For foreign sales branches, the Enterprise Resource Planning (ERP) system had been the only tool available for use. This is a system that automates and manages finance, manufacture, human resource, and operations. That means, the employees depended solely on phone calls and e-mails to manage incoming stock from the headquarters and shipments to customers. Our team analyzed the difficulty in their process and built a system that shows the real-time data of incoming and outgoing products and stock. The employees gave positive feedback on the new system, which improved their working conditions. We were glad to be able to support them.

•Shim Gyeong-min, Specialist: I’ve been in DX since the beginning of this field, which allowed me a wide range of experiences. On one side, I was responsible for DX in production such as quality prediction, facilities predictive maintenance, and process mining. On the other side, I gained experience in DX for foreign sales. I’ve had trials and errors, but also accumulated a lot of insights. One thing I value the most is communication. When people hear the words DX, A.I., and automation, they tend to think that our team will always realize something great to help with their tasks. But that’s not the truth. In reality, our work involves hard-thinking on analyzing the workers�?needs and applying DX to make the best out of it. It requires continuous monitoring throughout the project timeline on whether it is effective or not until we can actually apply it to the field. We understand that sometimes, field workers cannot reply to our inquiries right away due to multiple tasks. But only when DX can work closely with employees in the field and collect their requests can we obtain positive outputs. That’s when we feel that our work is worthwhile.

What are challenges of working in DX?

•Kim Joong, Team Leader: When we meet field employees, we see their high level of stress regarding different systems around them, and the difficulty of assigning extra labor forces into our projects. So we held team meetings with different departments to explain the vision and importance of digital CRM, emphasizing that only through their cooperation can we build a perfect system and process. It was a relief to have all the associates, managers, and team leaders�?support to kick off the LG Chem On project.

Is there a know-how to figure out customers�?needs?

•Do Hwe-gil, Specialist: It’s more important to hear the needs of the personnel who is in charge of the job than of the company itself. However, in most circumstances, our counterparts would not tell us directly what they need or want. In such cases, it is wiser to have one of LG Chem’s sales representatives who has grown with the customer and can get the gist of what our customer has to say to us. Also, I think it’s necessary to hear from the field employees on a regular basis.

Last question. What goals or directions does the DX team have? What last word do you want to leave?

•Bae Jong-hoon, Specialist: We’re living in the world where DX is not a choice, but a must. Not only in our everyday lives, but also in our workplaces, digital transformation is bringing tremendous changes and giving us an opportunity to take another leap. Please look forward to the changes digital CRM and DX will bring to the Petrochemicals company.

With digital CRM at LG Chem On, we hope that LG Chem customers could get easier and faster access to LG Chem’s products. Also, we look forward to improvement of digital transformation technologies. LG Chem will remain loyal to keeping the values of our customers and keep walking to establish a systemized platform.

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In October 2022, Germany successfully hosted K Show, the world’s largest plastic and rubber exhibition. It was the first exhibition in 3 years, held from 19^th to 26^th October in Dusseldorf, Germany. For visitors, this was a chance to see through the trend of the petrochemicals industry at one glance. Along with America’s NPE (National Plastics Exposition) and China’s Chinaplas, K Show is considered one of the Top 3 global plastic exhibitions, catching the public’s eye with its grand scale. Celebrating the 70^th anniversary, Germany’s 2022 K Show welcomed the participation of more than 3,000 global chemical companies from 60 nations. The main subjects addressed at 2022 K Show were Circular Economy · Digitisation · Climate Protection. Taking part in the event, LG Chem presented their next-generation eco-friendly products and technologies with the slogan ‘Sustainability with LG Chem.�?Check out LG Chem’s next-generation eco-friendly technologies brought to you directly from Germany’s 2022 K Show!

For sustainable lifeㆍsocietyㆍfuture!
LG Chem develops sustainable products and technologies

At the 2022 K Show, LG Chem arranged their exhibition booth with three core themes: Sustainable LifeㆍSocietyㆍFuture. Each theme depicted the proceeding of our daily life and society towards a sustainable future through LG Chem’s products applied with next-generation technologies. Sustainable Life Zone, for example, presented products based on LG Chem’s raw materials, such as PVC for windows and ABS for homes that could realize the humanity’s sustainable life. Moving onto the next theme, Sustainable Society Zone exhibited LG Chem products used in diverse industrial sectors. Visitors could meet LG Chem’s anchor products including the POE (Polyolefin Elastomer) for solar panels that is undergoing explosive growth and CNT (Carbon Nanotube) which boasts world-class quality based on the company’s proprietary technology. You could check out the final theme at the Sustainable Future Zone, where all the eye-catching, eco-friendly technologies were gathered. This included LG Chem’s next-generation materials whose developments are underway, such as PLA (Poly Lactic Acid), a plastic made of 100% bio raw material, PBAT (Poly Butylene Adipate-co-Terephthalate) which decomposes at landfill naturally within 6 months, and PCR (Post Consumer Recycle) products which recycle secondhand goods discarded by the end-consumers.

A unique chance offered to visitors who came to 2022 K Show was the <LG Chem ON Experience Zone>, which exhibited LG Chem’s digital comprehensive purchase platform. From product inquiries to orders and shipments, customers are given maximal convenience by checking the whole process of their purchase at LG Chem ON, just as in online shopping malls. LG Chem plans to keep up their efforts to strengthen the real-time communication with global customers.

LG Chem leads the global market with next-generation materials
and eco-friendly products!

In line with the global market trend, LG Chem intends to expand their eco-friendly portfolio and become the leader in the eco-friendly materials sector. So far, the company has secured more than 50 products certified by the ISCC (International Sustainability and Carbon Certification), proving their strength in developing eco-friendly materials. In August 2021, LG Chem celebrated their first mass-production and export of ‘Bio-Circular Balanced SAP (Super Absorbent Polymer),�?which was only a beginning. Since then, the company has continued sustainable collaborations with different companies. Furthermore, LG Chem is planning to operate their 4^th CNT plant from 2024, to mass-produce CNT known for its diverse applications, such as conductive materials in EV batteries, automotive electrostatic paintings, automotive exterior materials, etc. Through such efforts, LG Chem is targeting at the expanding global market of next-generation materials in earnest.

LG Chem’s sustainable materials and technology introduced at K Show, world’s largest plastic and rubber exhibition! You can now meet the same products worldwide. LG Chem is taking successive steps through eco-friendly materials and next-generation technologies in order to bring 2050 Net-zero mission to life! Support LG Chem’s advancement towards a sustainable future!

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In May 2023, LG Chem CEO Shin Hak-Cheol gave a keynote speech at the Bank of America (BofA) 2023 Korea & Global EV/EV battery conference, revealing the company’s aim to grow their battery materials sales sixfold by 2030 from that of 2022. LG Chem is targeting at the world’s top global comprehensive battery materials company through active R&D of essential battery materials such as cathode, separators, and additional materials, especially CNT. Check out the blueprint of LG Chem’s battery materials business and plans to accelerate their occupation of the CNT market.

Sales Target of  $23.1 billion by 2030 in Battery Materials Business Alone

LG Chem announced their ambition to step up as the top global comprehensive battery materials company with sales of $23.1 billion (KRW 30 trillion) by 2030. To this end, the company will not only focus on cathode materials that have already attracted the global market, but also explore additional material businesses such as separators and carbon nanotubes (CNT). In addition, LG Chem will push forward R&D of new materials such as pure silicon anode and electrolytes for solid-state batteries. Learn more about how LG Chem plans to promote their battery materials.

Secure global leadership in the market·technology·metal sourcing of cathode materials

LG Chem’s cathode materials are already recognized in the global market for their product quality. In particular, the high-nickel cathode material with a higher proportion of nickel aims to pioneer the global leadership in three areas: market, technology, and metal sourcing. What are the strategies for each sector?

To start with, LG Chem intends to strengthen their leadership in the global cathode material market by establishing a global quadrilateral production system for cathode materials that connects Korea-China-U.S.-Europe, and increase their high-nickel production capacity from 120,000 tons in 2023 to 470,000 tons in 2028.

LG Chem will also tighten the technology leadership by expanding their high-nickel cathode product lineup for pouch-type and cylindrical batteries, mass-producing ultra-high-nickel cathodes with nickel content of 95%, and extending the application of single crystal cathode materials technology in the sector. In order to target the needs of rapidly-growing global EV market and customers, LG Chem is also considering expanding their offerings with cost-efficient cathode materials including high-voltage mid-nickel (Mid-Ni), lithium iron phosphate (LFP) and manganese-rich (Mn-Rich) to meet customer needs and target the growing mass market for electric vehicles (EVs).

Furthermore, LG Chem is cementing the global partnerships to secure their metal supply chain. In China, U.S., Australia, and Korea, the company is carrying out various initiatives such as establishing joint ventures (JVs) for precursors, signing lithium contracts, and making equity investments with major players including Huayou Cobalt, Piedmont Lithium, and KEMCO.

Expand additional battery materials business for further growth

Producing a battery requires additional materials such as separators, anode binders, and conductive additives. Among them, LG Chem is paying attention to the separator, a key material to secure battery stability, and owns a SRS® (Safety Reinforced Separator) technology which improves safety through ceramic coating. The collaboration of LG Chem’s world-class coating technology and Toray’s differentiated fabric technology is expected to add momentum to expanding the company’s presence in the Korean, European, and American separator market.

In addition, LG Chem is actively exploring growth opportunities based on innovative materials technologies such as pure-silicone (Pure-Si) anode materials, electrolytes for solid-state batteries, and flame-resistant battery materials like aerogels.

Accelerate occupation of global CNT market through high-quality CNT

CNT is a next-generation material with electrical and thermal conductivity equivalent to those of copper and diamond, and is 100 times stronger than steel. It is applied to EV batteries, semiconductor process trays, automotive electrostatic coating materials, etc. Thanks to its excellent electrical conductivity, CNT-based semiconductor process trays can withstand high temperatures and effectively block dust, electromagnetic waves, and static electricity. Also receiving high expectations in the market is CNT for EV batteries. It is expected that CNT for EV batteries will grow into a market worth about $2.3 billion (KRW 3 trillion) by 2030.

As new areas to which CNT can be applied are excavated, prospects are that global CNT demand will grow sharply at an average annual rate of about 30%, from 14,000 tons in 2022 to 95,000 tons in 2030. LG Chem seeks to preoccupy a firm competitive edge in the growing global CNT market by setting up more plants in Korea and securing high production capacity.

Starting with the first CNT plant with a capacity of 500 tons in 2017 and into the 2020s, LG Chem is installing additional plants every year to keep pace with the market expansion. As of June 2023, the annual CNT production capacity from CNT plant 1·2·3 reached 2,900 tons, and with the completion of CNT plant 4 in Daesan, Korea, it is expected to increase twofold to a total of 6,100 tons.

LG Chem’s CNT supplied to the global EV battery market

LG Chem owns a proprietary technology of self-developed fluidized bed reactor, which dramatically increases CNT productivity by rotating CNT powder inside the reactor. LG Chem’s CNT plants can produce up to 600 tons on a yearly basis, demonstrating the highest single-line capacity in the world.

Meanwhile, so far CNT production mostly depended on iron (Fe) catalysts with a relatively high metal and magnetic impurity content compared to cobalt, which made separate post-processing inevitable before commercialization. LG Chem developed a proprietary cobalt (Co) based catalyst technology, lowering the content of magnetic impurities that can affect battery quality, and succeeded in achieving world-class battery quality.

CNT materials produced by LG Chem will be supplied as conductive additives to global battery makers, with plans for usage to be expanded to a broader range of industries. Conductive additives help the flow of electricity and electrons in a battery, raising the conductivity of lithium-ions and thereby increasing the charge/discharge efficiency. When used as conductive additives for cathodes, CNT can reduce the volume of conductive additives in batteries by nearly 30% while achieving 10% more conductivity than carbon black. CNT-based batteries can deliver higher capacity and longer lifespan as more power-generating cathode materials can be used in place of the conductive additives. Thus, besides conductive additives for cathodes, CNT is also an attractive conductive additive of next-generation anode, lithium-sulfur, and solid-state batteries.

CNT expected to have myriads of applications

What is LG Chem doing to excavate new applications of CNT? In January 2023, LG Chem launched a task force (TF) to develop new CNT applications in addition to EV batteries. Recently, the company started supplying CNT-added, metal-replacing electrostatic coating* plastics to Japanese automaker Mitsubishi Motors, which is now applying the material to the front fenders of their three vehicle models. Furthermore, this plastic can be varied and customized to make other types of automotive parts such as bumper panels, hoods, tailgates, fuel doors, and side mirrors.

* Electrostatic coating: A method of applying electricity to paint and parts to color them with the sticking property of static electricity. Thanks to the excellent conductivity of CNT, it is eco-friendly because the amount of paint used is small, and it can be colored with a uniform thickness without restrictions on size or shape.

In addition, CNT can also be used as an electromagnetic shielding material to protect automotive radar sensors and modules. CNT is a shielding supplement that can replace metal and is applied to side mirrors and bumpers of cars to absorb signals and electromagnetic waves that cause irregular interference in autonomous driving functions such as Lane Keeping Assist System (LKAS) and Blind Spot Detection (BSD), contributing to the safety of a vehicle. LG Chem is currently supplying CNT to domestic automakers, allowing them to apply the material to their radar-absorbing system for electro-magnetic interference (EMI) purposes. The market is expected to continue to grow even more as demand for self-driving cars and electric vehicles continues to increase worldwide.

LG Chem is leading the battery material market through various means, such as establishing market·technology·metal sourcing strategies to target the cathode material market, expanding the value-added battery material businesses, targeting the global CNT market through CNT plant expansion, and developing new CNT applications. To become the top global battery materials company, LG Chem will continue their R&D efforts of diverse battery materials, including major battery materials, additional materials, and CNT.

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Climate change is draining the Earth. According to the report ‘Drought in Europe August 2022�?published by the European Union’s Joint Research Center (JRC), the European region has been struck by the worst drought in 500 years. With 47% of European countries measuring less than average rainfall, the soil moisture content is in warning condition, damaging plant and crop yields. This issue, however, is not limited to Europe. Due to global droughts, soils in the western United States are the driest recorded in 1200 years, and prolonged droughts in Africa and elsewhere have increased global starvation. This is a time when the phrase ‘water scarcity�?feels more severe than ever.

Gaining attention amid the global water shortage is the ‘Water Industry�? and with water treatment technology receiving the spotlight, LG Chem is leading the industry with RO membranes applied with their proprietary Thin-Film Nanocomposite (TFN) technology. Take a closer look at LG Chem’s RO membrane!

The Blue Gold of the 21st Century, Water

Water is commonly referred to as the ‘Blue Gold�?of the 21^st Century, indicating how rare water is. Here comes a question; why is water so scarce, when approximately 70% of the Earth is covered with water? It’s a common sense that a great large amount of water exists on our planet. Yet, taking out the salty sea water, only 2.5% of the total amount of water can be consumed as drinking water. What’s worse, a huge proportion of this consists of permanent snow and glaciers, which leaves less than 0.3% of actual water that humans can utilize. This explains the saying, “water is as valuable as gold.�?/p>

Perhaps, water is a more valuable presence to humanity than assumed. Clearly, water is directly connected to humans�?survival. It might be hard to imagine, as water is so close to our lives, but if water disappeared overnight, the mankind’s daily life and basic right to live would be under threat.

Water Industry Grows to the Market Size of $1 Trillion

As such, the significance of water cannot be overemphasized. In recent years, water industry is gaining more public attention as the importance of water rises along with the water shortage problem. The term water industry refers to all businesses that produce and supply water necessary for daily life and industrial purposes. It includes purification, transportation and treatment of sewage and waste water, sewage management, and desalination business that turns seawater into fresh water. Recently, issues such as intensified water shortage, population growth, rapid urbanization, and increased water demand due to economic growth are accelerating the expansion of water industry. According to the UK’s 2022 Global Water Intelligence (GWI) Waterdata, the global water industry market size will expand from about $831.7 billion in 2021 to $998.9 billion in 2027.

Analyzing the size of the current global water industry market by country, the United States has the largest market at about $150 billion, followed by China and Japan with $105 billion and $86.7 billion respectively. In terms of market size alone, the water industry has already surpassed semiconductors and shipbuilding, and can be said to be a major global industry.

In the water industry, which is now considered a new growth engine for national economic development, LG Chem is standing out based on their excellent water treatment membrane technology. In April 2014, LG Chem acquired ‘NanoH2O’, a US-based water treatment membrane manufacturer, securing the core technology for reverse osmosis membranes. To this, the company added their proprietary polymer synthesis/processing technology and global marketing network, entering the RO membrane business in earnest. Since then, further research and development led to the introduction of various product groups, including not only RO membranes for seawater desalination but also for industrial and household uses. As a result, LG Chem has been successfully attracting large-scale products in the global market.

LG Chem’s RO Membrane Receives Global Attention

In 2016, LG Chem won a 250,000-ton RO membrane project based in Oman, the Middle East, only two years after their market entry. Again, in the following year of 2017, the company was selected as the sole supplier of RO membranes for a seawater desalination plant with a capacity of 300,000 tons to be built in El Galala and Port Said, the Red Sea region of Egypt. LG Chem’s success in winning large-scale orders in the early stage of market entry attributes entirely to their excellent RO membrane technology.

As the name suggests, LG Chem’s RO membrane applies the reverse osmosis technology. Let’s recall the principle of osmotic pressure from our high school science experiment. Say that you soaked cucumbers in salt water. You would remember seeing the water move from the cucumbers, with higher water concentration, towards the salt water. As a result, the water would have drained out of the cucumbers, turning them into pickles. This phenomenon is known as osmosis.

Reverse osmosis is the reverse application of the principle of osmosis. According to the principle of osmotic pressure, water moves through a semipermeable membrane from low concentration to high concentration. Yet, when high pressure is applied to the top of a concentrated solution, the water in the concentrated solution moves through the semipermeable membrane to the low concentration side. This is the principle of reverse osmosis. LG Chem’s RO membrane purifies water using this principle. When unpurified water reaches the RO membrane, the water pressure prevents all contaminants from passing through, and water passes through an extremely fine filter, leaving only the pure water.

Among numerous water treatment membranes based on reverse osmosis, LG Chem’s RO membrane is recognized for its excellent product quality in the global market. In particular, RO membranes for seawater desalination are leading the global seawater desalination market with an unrivaled salt removal rate of 99.89%. That means, if seawater passes through LG Chem’s RO membrane, only 11 out of 10,000 sodium chloride molecules remain. In addition, LG Chem’s seawater desalination and industrial RO membranes apply the company’s proprietary Thin-Film Nanocomposite (TFN) technology to coat nanoparticles on the surface of the membrane to maintain the salt removal rate while increasing the flux by 20% compared to other products. This gives LG Chem’s membranes an energy-saving advantage, as they do not require high pressure.

From Desalination to Salt Lake Lithium-Extraction Projects,
LG Chem’s RO Membrane is Your Companion!

Recently, LG Chem won a large-scale seawater desalination project in Israel based on their global competitiveness, and from 2024, more than one-third of Israel’s freshwater production (sum of purified water from Ashdod, Palmachim, Hadera, Ashkelon plants) will be supplied by LG Chem’s RO membranes. In addition to seawater desalination projects, LG Chem’s RO technology is leading the company to remarkable achievements in various industries.

For example, in March 2023, LG Chem supplied RO membranes to China’s largest salt lake lithium extraction project led by CITIC Group. Generally, in order to obtain lithium dissolved in salt lakes, water must be evaporated to increase its concentration of lithium. With the reverse osmosis process using LG Chem’s RO membranes, it allows to quickly filter out the water molecules without applying heat. CITIC Group evaluated that LG Chem’s RO membrane was able to drastically reduce the time and energy required for lithium production. Starting with this project, LG Chem plans to actively participate in other salt lake lithium projects in China and South America.

Furthermore, LG Chem is collaborating with Korea University of South Korea to develop next-generation RO membranes with Direct Lithium Extraction (DLE) process. It is a technology that directly extracts lithium from salt lakes, which shortens the lithium concentration process from months or more to a few hours. LG Chem is researching RO membrane materials that can increase the recovery rate and purity of lithium and improve durability within this process. When direct extraction of lithium is fully applied, it is expected that the process will be simplified and the extraction efficiency will be higher.

LG Chem’s RO membrane not only provides a solution to water shortage amid the climate crisis, but is also expanding its scope of use based on the company’s excellent technology. LG Chem will continue to lead the global water treatment membrane market by thinking of ways to establish sustainable life for humanity and keeping up investment on new technologies.

The post Everywhere and Anywhere for Clean Water! LG Chem’s RO Membrane Reaches out to the World appeared first on LG Chem Blog.

In 2022, LG Chem recorded sales of $40 billion (KRW 51.9 trillion) and business profit of $2.3 billion (KRW 3 trillion), according to their year-end report. Also, the company revealed their ambition for sustainable growth centered on eco-friendly materials, battery materials, and global new drugs. Their priority lies on carrying out ESG management, to achieve Net-Zero by 2050 by converting to eco-friendly raw materials and expanding the use of renewable energy. Acknowledging these efforts, LG Chem was named No.3 global chemical company of 2023 by their brand value. With the honor in hand, what plans and activities has LG Chem set up?

LG Chem, Named No.3 Global Chemical Company for Brand Value

Brand Finance, a Britain-based firm which offers evaluation and consulting of global brands, published <Chemicals 25, 2023> in which they estimated LG Chem’s brand value as $4.5 billion, 5% increase over the previous year. LG Chem’s brand value ranked 4th in 2019 ($3.3 billion), 4th in 2020 ($3.5 billion), 4th in 2021 ($3.6 billion), and 3rd in 2022 ($4.3 billion), showing consistent increase. Amid the unstable global economy, LG Chem has achieved steady growth and was selected as No.3 global chemical company by their brand value for two consecutive years in 2022 and 2023.

2030 Sales Target of $30.8 billion with Three New Growth Engines!

LG Chem has set a sales target of $30.8 billion (KRW 40 trillion) by 2030, with focus on their three new growth engines; Eco-friendly Materials, Battery Materials, and New Drugs. Through expansion of high-value-added new businesses based on ESG, the company is establishing a foothold to leap up as a global science company. Let’s take a look at LG Chem’s new growth engines!

As for Eco-friendly Materials, LG Chem plans to expand recycled materials that apply PCR plastics, compostable and bio-circular balanced materials extracted from plant-based bio raw materials, and new renewable energy materials. The company’s sales of eco-friendly sustainability business recorded $1.4 billion (KRW 1.9 trillion) in 2022, which they intend to raise up to $6.2 billion (KRW 8 trillion) by 2030. Adding to this, LG Chem holds world’s first and best technology for cathode materials based on NCM (NickelㆍCobaltㆍManganese) since beginning mass-production in 2006.  Now, the company seeks to take aggressive measures to foster their proprietary technology of additional battery materials, such as Separator (Safety Reinforced Separator, SRS), Carbon Nanotube (CNT), Thermal Adhesives, Battery Assembly Solution (BAS), etc. This is expected to improve the sales of their battery materials business to $23.1 billion (KRW 30 trillion / six times that of 2022), paving their way to be the world’s best comprehensive battery materials company. Finally, LG Chem is devoted to the development of global new drugs focused on anticancer, diabetes, and metabolism, and has secured 19 pipelines of global innovative new drugs that have entered phase one or higher clinical trials. The company is accelerating their leap as a global innovative pharmaceutical company which holds at least five FDA-approved new drugs, through research and development including the application of artificial intelligence.

LG Chem Makes a Sustainable Movement
as a Global Science Company Leading Sustainability

LG Chem’s dream reaches beyond sustainable development of the company, proven by their constant actions for the sustainability of the Earth and humanity. It has been declared that LG Chem will put the goal of 2050 carbon-neutral growth forward by 20 years, and achieve Net-Zero by 2050. Furthermore, the company will expand their use of eco-friendly raw materials and renewable energy, cutting down the carbon emissions. By 2023, all domestic and international LG Chem products are set to undergo LCA (Life Cycle Assessment), a strategy to evaluate the impact of each product on the environment across whole process, from raw material to manufacturing.

LG Chem will keep pushing their growth in Eco-friendly MaterialsㆍBattery MaterialsㆍGlobal New Drugs, and minimize the carbon emissions by expanding the use of renewable energy. Towards a global science company, LG Chem’s sustainable actions will continue on.

The post No.3 Brand Value Among Global Chemical Companies! LG Chem, a Science Company Leading Sustainability appeared first on LG Chem Blog.

Making a leap towards a global science company, LG Chem selected Battery Materials, Eco-friendly Materials, and Innovative New Drugs as their next-generation growth engines and announced detailed growth strategies.

LG Chem dreams of becoming a global innovative drugs company holding at least five FDA-approved new drugs and $1.5 billion (KRW 2 trillion) of sales.

See the below infographic to check out details of LG Chem’s next-generation growth engine, ‘innovative drugs!�?/p>

You can download the infographic by clicking on the link. [DOWNLOAD]

The post [Infographic] LG Chem’s Next-Generation New Growth Engines: Innovative New Drugs appeared first on LG Chem Blog.

Making a leap towards a global science company, LG Chem selected Battery Materials, Eco-friendly Materials, and Innovative New Drugs as their next-generation growth engines and announced detailed growth strategies.

LG Chem is committed to step up as a global top comprehensive battery materials company! To this end, the company intends to expand their sales of battery materials to $23.1 billion (KRW 30 trillion).

Take a look at LG Chem’s next-generation growth engine, ‘battery materials�?through the infographic!

You can download the infographic by clicking on the link. [DOWNLOAD]

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A chance to look into a corporate’s goals and visions, Investor Day! If you are an investor or have curiosity about the future of a company, you should pay close attention to this event. In February 8, 2022, LG Chem held Investor Day to announce their goals, vision, and detailed plans to the public. What was the blueprint presented by LG Chem?

Generate $46.2 billion in Sales, Centered on New Businesses

A gist of 2022 LG Chem Investor Day was the company’s sales goal. Back in 2021, LG Chem generated $20 billion (KRW 26 trillion) of sales, which, according to CEO Shin Hak-Cheol, will increase by over 130% to hit $46.2 billion (KRW 60 trillion) in 2030. How could such growth be possible? The basis of this is the expansion of LG Chem’s new businesses, and among them, LG Chem plans to focus on eco-friendly materials, battery materials, and global new drugs. Let’s take a look at the specific goals of each business sector.

Eco-friendly Material �?Recycled Material, Compostable/Bio-Circular Balanced Material, Energy Transition Material

LG Chem is well aware of the rapid changes going on in the world. In order to keep up the company’s growth at such a time, a new growth engine is required. For LG Chem, the engine refers to recycled materials, compostable/bio-circular balanced materials, and energy transition materials.

Until 2021, LG Chem made consistent contributions to the recycled materials market, in other words, PCR plastic market, by securing recycled raw materials and improving the physical properties of PCR plastics. Such commitment resulted in the company’s commercial production of world’s first PCR plastic material with a pure white color. And yet, LG Chem did not stop there, and is planning to expand their partnership with home appliances manufacturers along with developing PCR plastic materials with transparency. Furthermore, the company seeks to continue their R&D of PCR plastics with physical properties equivalent to the conventional plastics. In addition to PCR materials, LG Chem plans to promote commercialization of Circular-balanced materials in collaboration with UK-based Mura Technology and build a supercritical pyrolysis oil plant with an annual capacity of 20,000 tons by 2024.

In talk of new growth engines, you can’t take out compostable/bio-circular balanced materials. In August 2021, LG Chem already began exporting SAP (Super Absorbent Polymer) with waste cooking oil and plant-based bio raw material contents. Also under planning is the launch of commercial production plant of PBAT (Poly-Butylene Adipate Terephthalate), known for its fast decomposition, which is scheduled for 2024. Likewise, the company will expand the production scale of PLH (Poly Lactate Hydracrylate) to a commercial level, a material which offers extra transparency and 20 times the flexibility of existing compostable plastics.

The finale of LG Chem’s new growth engines is the energy transition materials, whose market is undergoing rapid expansion. Prompted by its growth, the market of PVEN POE (Photovoltaic Encapsulant Poly Olefin Elastomer) is also expected to rise. In 2021, LG Chem began installation to expand the production capacity of POE for solar panels by 100,000 tons, aiming to start mass-production in 2023. In addition, the company is developing a catalyst by which they will attain plastic using carbon dioxide as a raw material, hoping to reduce carbon footprints.

Battery Material �?Cathode/Separator, Excavate New Battery Materials

In 2006, LG Chem became world’s first producer of NCM (Nickel, Cobalt, Manganese). Stretching out this long-time-accumulated technology, the company now plans to accelerate the growth of their cathode business. Ongoing discussions include collaboration with numerous companies to expand the proportion of high-nickel products to 90% of LG Chem’s overall battery production and secure the supply of metal. Besides that, LG Chem has also acquired share of Li-Cycle, America’s largest battery recycling company. Based on these efforts, the company plans to set up a global quadrilateral production system in Korea/China/Europe/USA and raise their production capacity to 260,000 tons by 2026.

In addition, LG Chem seeks to expand the separator business based on their proprietary technology including the safety-reinforced separator (SRS). In 2021, the company established a joint corporation with Toray, which holds a differentiated separator fabric technology, and acquired the coating business of LG Electronics, known for their quality coating technology. LG Chem will keep expanding their global production base and keep focus on the separator business.

Outside of that, LG Chem also intends to nurture battery supplementary materials such as CNT (Carbon Nanotube), thermal adhesive, anode binder, BAS (Battery Assembly Solution), etc. Furthermore, the company will accelerate the development of battery material technology that enhances battery performance and safety, along with next-generation battery technology including the materials for all-solid batteries.

Global new drugs �?Anti-cancer, Diabetes/Metabolism Global Innovative New Drug Development

Global new drug is another proportion of LG Chem’s major businesses. As of February 2022, LG Chem secured 10 global innovative new drug pipelines that have entered phase 1 or higher clinical trials. By 2030, the company plans to secure 23 clinical stage pipelines and commercialize at least two of them in major markets such as the US and Europe.

Move Up Carbon Neutral Growth Goal by 20 Years! Achieve Net-Zero in 2050!

LG Chem’s future goal is not limited to sales. The company understands their role as a science company to contribute to the global market and lead human life in a better direction. And thus, LG Chem is pushing forward the 2050 carbon-neutral growth target by 20 years and has set a goal of achieving Net-Zero by 2050.

To this end, LG Chem has established detailed action plans in three fields; Reduce, Avoid, Compensate. To begin with, the company intends to ‘reduce�?carbon emissions through introduction of innovative processes and conversion to eco-friendly fuels. Next, they will expand the use of renewable energy to ‘avoid�?carbon emissions. Finally, the company will take measures to ‘compensate�?unavoidable carbon emissions. Taking this further, by 2030, LG Chem plans to complete LCA (Life Cycle Assessment) for all domestic and foreign products, which quantitatively evaluates environmental impacts of a product from raw materials to manufacturing.

Since foundation in 1947, LG Chem has been striving to present a vision to human lives and values ​​through repeated challenges and innovations. In 2022, which marks the 75th anniversary of their founding, LG Chem dreams of taking on new challenges and innovations to step up as a ‘Top Global Science Company.’ To achieve sustainable growth as a global science company and advance unwaveringly in any situations, LG Chem’s passion will continue on.

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What is Brand Identity (BI)? It refers to the image people associate with a particular brand, including its logo, visual elements, colors, and even abstract concepts such as its products, services, and philosophy. In other words, brand identity is a unique impression of a brand. People experience brand identity through various elements, including its philosophy, logo, colors, products, and services.

What is LG Chem’s brand identity? In 2020, LG Chem announced their vision: “We connect science to life for a better future.” This vision connects ‘science,’ a combination of accumulated knowledge, technology, and solutions, to the ‘life’ of humanity to move toward a ‘better future.’ LG Chem’s brand identity, established in March 2022, also embodies this vision.

Moving Towards a Science Company Leading Sustainability

LG Chem has established their brand identity from their vision. To achieve the vision, LG Chem pondered on their role and what kind of image and message to convey to their customers. After much consideration, LG Chem re-established their identity as science beyond the conventional image of chemistry. From there, LG Chem established their brand identity (BI) as a science company and a leader in sustainability.

Visual designs have been developed instead of linguistic expressions to communicate LG Chem’s brand identity (BI) to customers. The core values of Customer Focus, Agility, Collaboration, Passion, and Sustainability have been infused into the design motifs. Furthermore, a color scheme has been devised to align with LG Chem’s environmentally-friendly and science-focused image, establishing a unified brand identity.

The graphic motif image, which symbolizes sustainability and connectivity, is created by cutting out the wave pattern design into lines or planes. These elements are also arranged in various directions and layouts, allowing for flexible use.

LG Chem uses a consistent design of their graphic motif for product packaging, brochures, signboards, advertisements, web pages, and videos. LG Chem is enhancing their brand identity to communicate its meaning effectively and approach customers more warmly. LG Chem will continue to strive tirelessly to ensure that their vision and brand identity, which aim to connect science to life for a better future, are well communicated to customers.

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In February 2022, LG Chem announced their plans to become a global science company, and revealed their intention to increase revenue ten times by 2030, from the current $2.2 billion (KRW 3 trillion) to $22.6 billion (KRW 30 trillion), with three new growth engines; eco-friendly materials, battery materials, and globally-innovative new drugs.
In their bid to become a global pharmaceutical company, LG Chem has secured 19 pipelines for global drugs in clinical trial stages phase 1 or above, and has accelerated R&D efforts. Through the application of novel AI models and by endeavoring to develop at least four new FDA-approved drugs by 2030, LG Chem intends to secure a position within the top 30 global oncology-focused pharmaceutical companies. After unveiling their plans to develop new drugs for the global market, LG Chem is increasing their presence by obtaining the FDA’s approval for clinical test plans, and through the acquisition of a bio company. Learn more about LG Chem’s moves in the global bio market.

From new obesity drug that received additional ODD by the US FDA to new gout drug that obtained approval for global phase 3 clinical trials

In June 2022, LG Chem’s new drug for genetic obesity treatment received additional Orphan Drug Designation (ODD) from the US FDA. The new drug, LB54640, is orally administered once a day targeting the pathway of a gene, MC4R (Melanocortin 4 Receptor), which controls appetite. When a working pathway of MC4R malfunctions, a feeling of hunger continues and thus worsens obesity. LB54640 works directly on MC4R protein that sends a signal of satiety, and induces suppression of appetite. LG Chem recently completed clinical phase 1 study of LB54640 in the US for healthy overweight adults without genetic defects, and plans to conduct global phase 2 and 3 clinical trials for genetic obesity patients with LEPR or POMC deficiency starting this year.

LG Chem is also developing Tigulixostat, a new drug for gout treatment, and plans a global phase 3 clinical trial, hoping to bring the new drug to gout patients around the world as quickly as possible. In September 2022, LG Chem submitted a plan for the second round of phase 3 clinical trial of Tigulixostat to the US FDA, and obtained approval in November 2022. The new clinical trial is conducted with a control group of patients who take allopurinol, which is a primary selective ingredient for gout treatment. The clinical trial will be conducted for 2,600 adult gout patients with hyperuricemia for 12 months to observe long-term administration stability, the effect of lowering blood levels of uric acid, and reducing gout attacks and tophus. Based on distinguished outcomes of the clinical trials, LG Chem endeavors to sharpen their competitive edge in the global bio market.

Acquisition of an oncology-focused US biopharmaceutical company
that has FDA-approved new drugs

LG Chem successfully acquired AVEO Pharmaceuticals(“AVEO�?, an innovative US anti-cancer pharmaceutical company that has an FDA-approved new drug for renal cancer treatment. Established in 2002 in Boston, Massachusetts, the company focuses on oncology markets in terms of clinical development, drug approval, sales, and marketing. In 2021, AVEO obtained FDA approval for their renal cancer drug, Fotivda, and the company’s revenues are expected to grow. By acquiring AVEO in a $571 million deal, LG Chem took over 100% of AVEO shares.

In the US, systems regarding medical insurance, drug fees, and drug circulation are widely different from Korea, and localized commercialization capacity is required from the early stage of drug development. It is a difficult market to pioneer, but business for anti-cancer drugs can be managed with a sales unit focusing on a few oncology-dedicated medical institutions. In addition to Fotivda, AVEO has three more pipelines for cancer drugs in the stage of clinical development including Ficlatuzumab, a drug for head and neck cancer treatment for which a phase 3 clinical trial is underway. If all three drugs are successfully developed, they are expected to obtain FDA approvals in the next 30 years. With the successful acquisition deal, LG Chem instantly secured a presence in the US market for anti-cancer drug commercialization. The company also gained a foothold to develop and commercialize new drugs in the US, the world’s largest market for pharmaceutical products.

With continued R&D efforts, LG Chem stands at the center of the global bio industry

Until now, LG Chem Life Sciences division has focused on vaccines, diabetes treatment, cosmetic fillers, and growth hormones. In February 2022, the company announced a plan to foster three new growth engines, and shortly after that, their new drug for obesity treatment received an ODD from the US FDA. LG Chem’s plan to conduct a global phase 3 clinical trial for a new drug for gout treatment was approved, and the company also acquired an oncology-focused US biopharmaceutical company, making headways in increasing presence in the global bio market. LG Chem absorbed AVEO’s capacity for drug commercialization and clinical development, and expects to earn revenues worth $1.5 billion (appr. KRW 2 trillion) from the Life Sciences business.

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What do you think is the most important part of corporate activities? Is it operating income? Is it revenues? Some might say ESG is even more important. ESG indicates environmental, social, and governance, which are critical elements for the sustainable growth of a company and our society. Acknowledging its utmost importance, LG Chem plans to invest in areas for sustainable growth based on ESG considerations. LG Chem’s CEO, Shin Hak-Cheol, announced a plan to invest about $7.7 billion (KRW 10 trillion) in ESG-based areas for sustainable growth until 2025. Learn more about detailed investment plans of LG Chem.

Active investment in three new growth engines

In 2021, LG Chem introduced three new growth engines along with an investment plan for future growth and stability. They are eco-friendly sustainability initiatives, battery materials for electric vehicles (EVs), and global innovative pharmaceuticals. As companies around the world build ESG-based business models, LG Chem, a global science company, also adopts sustainability as a premise for revenues and operating income. To do so, it is important to consider sustainability throughout all business processes, strategies, investment plans, and systems.

Sustainable business based on eco-friendly materials!

LG Chem unveiled a plan to invest about $2.3 billion (KRW 3 trillion) in sustainable businesses including bio materials, recycled materials, and renewable energy, to foster their petrochemical unit as the center of future growth. As part of this effort, the company launched ‘LETZero�?in July 2021, a master brand for eco-friendly products, taking a step toward a sustainable environment and future. LETZero lineups include products made of recycled plastics, bio materials made of plant-based renewable materials, and compostable products made of glucose and waste glycerol extracted from corns.

Some of these eco-friendly products received ISCC Plus, a highly regarded international eco-friendly certification. LG Chem’s circular balanced SAP (Super Absorbent Polymer)─the world’s first to be used in diapers and sanitary products for water absorption─is now mass produced to be supplied to global clients in the US and Europe.
LG Chem’s compostable high-polymer PBAT (Polybutylene Adipate-co-Terephthalate) is used in agricultural film and disposable film as it quickly decomposes in a reaction to oxygen, heat, and enzyme. The company is actively adopting external technologies to make market forays and strengthen capacities, and planning to start construction of a production facility in 2023.

Anticipating a brisk growth of the market for bio plastics, LG Chem also works with domestic materials companies to procure eco-friendly materials such as bio naphtha and PLA (Poly Lactic Acid) made of plant-based materials such as corns. In 2021, LG Chem and Inner Bottle─a startup for eco-friendly packing solution─established an eco-platform for 100% recycling of plastic cosmetic packaging, and launched a joint project to apply recycled plastics such as PCR ABS (Post Consumer Recycled Acrylonitrile Butadiene Styrene) to cosmetic packaging. LG Chem endeavors to identify new business opportunities in the market for renewable industrial materials such as POE*/EVA* used in solar panels.

*POE (Polyolefin Elastomer): LG Chem’s POE is a copolymer of ethylene and octene or ethylene and butene produced with the company’s proprietary metallocene catalyst. LG Chem’s POE has superior impact resistance, high elasticity, and low thermal sealing temperature.
*EVA (Ethylene Vinyl Acetate): EVA is a copolymer of ethylene and vinyl acetate (VA) monomer. Its elasticity, heat sealing temperature, durability, and permeability vary depending on the content of vinyl acetate monomers. It is used in various areas ranging from photovoltaic sheets for solar energy to shoe soles.

e-Mobility with a focus on battery materials

To become the world’s top comprehensive battery materials company, LG Chem plans to invest approximately 4.6 billion (KRW 6 trillion) and broaden their product portfolio to include cathode materials, separators, anode binders, thermal adhesives, and CNTs.

LG Chem fosters their cathode materials business to become the global leader. In November 2022, the company signed an MOU to build a cathode materials facility in Tennessee, U.S., the largest in the country. Specifically, over $3 billion will be invested in the site (1.7 million m²) in Clarksville, Tennessee, to build a facility and secure the capacity to manufacture 120,000 tons of cathode materials per year. For a stable supply of metals needed for cathode materials, LG Chem will work with mining companies as well as companies that have smelting/refining technologies to strengthen competitiveness in metal procurement. The company intensively invests resources in R&D for cathode materials, separators, anode binders, and thermal adhesives to develop differentiated products.

LG Chem also plans to expand CNT* production as the market for battery materials grows briskly. To make forays into the market for cathode conductive additives*, LG Chem will build a fourth CNT plant in Daesan, Korea to produce 3,200 tons of CNTs each year. Once completed, LG Chem’s CNT output capacity will reach 6,100 tons annually, including 1,700 tons from the first and second plants and 1,200 tons from the third plant. After the first CNT plant started operation in 2017 (annual capacity of 500 tons), LG Chem has steadily expanded CNT manufacturing facilities.

*CNT (Carbon Nanotube): A new material that has the same electric and thermal conductivity as copper and diamond and is 100 times stronger than steel.
*Conductive additive: It facilitates flows of electricity and electrons, and is used as an additive in lithium-ion batteries; particularly, it enhances the conductivity of lithium ions in cathode materials made of active materials such as nickel and cobalt, to increase charging and discharging efficiency.

Bio and life science with a focus on innovative pharmaceuticals

LG Chem’s life sciences division aspires to become a global company that has at least two innovative new drugs by 2030 to expand business in the US and Europe. To this end, the number of pipelines for new drugs has increased from 34 in 2019 to 45 currently, and active R&D efforts and investments are underway.

LG Chem’s life sciences division focuses on developing drugs for four strategic disease groups─diabetes, metabolic diseases, cancer, and autoimmune diseases. The company also plans to increase pipelines for new drugs in a stage of clinical development. To do so, LG Chem established a research center in the US and make continued efforts to secure competent clinical and regulatory specialists.

Envisioning a sustainable future while fulfilling corporate responsibility

LG Chem makes continued R&D efforts to create a sustainable solution based on their business knowledge and know-how. Considering sustainability in business activities is not a choice but an obligation, and the company needs to step up related efforts.

LG Chem started out as a petrochemical company, and has evolved into a global science company that includes divisions on advanced materials and life sciences. To maximize growth potential, the company makes systematic investments and fosters strategic businesses to lead the future of LG Chem.

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LG Chem started research on batteries in 1992, and established a technology center in Troy, Michigan, U.S. in 2001 for more advanced research. For a long time, LG Chem has worked with automotive companies and made notable achievements including the development of Safety Reinforced Separator (SRS�? and the world’s first mass production of cylindrical lithium-ion batteries. Now LG Chem focuses on research and development of battery materials.

During US Secretary of the Treasury Janet Yellen’s visit to Korea in July 2022, she met with CEO Shin Hak-Cheol to discuss battery material technology and strengthening battery supply chains. LG Energy Solution, a battery manufacturing subsidiary of LG Chem, operates a plant in Ohio, U.S., and is constructing manufacturing plants in Tennessee and Michigan, as well as in Ontario, Canada. Local demand for battery materials is steadily rising, and LG Chem is looking forward to stronger partnerships with leading companies in the US.

Leading the field of battery recycling together
with the largest battery recycler in North America

In a bid to lead the field of battery recycling, LG Chem forged a partnership with LG Energy Solution and Li-Cycle, the largest battery recycler in North America. Established in 2016, Li-Cycle has excellent technology for recovering critical materials from recycled batteries. For ten years starting in 2023, Li-Cycle will be supplying 20,000 tons of recycled nickel for LG Chem and LG Energy Solution. The nickel will be extracted from scraps generated during manufacturing batteries as well as from discarded batteries. In recovering, Li-Cycle uses an eco-friendly wet method that prevents dust and minimizes discharge of toxic materials by fully reusing waste water. This environment-friendly approach strengthens their competitiveness in ESG management. With a supply of raw materials produced in an eco-friendly way, LG Chem and LG Energy Solution respond to increasingly more rigorous environmental regulations in the US and EU.

A stable supply of cathode materials
amid growing global market for EV batteries

In July 2022, LG Chem joined hands with GM(General Motors), the largest automaker in the US, to make forays into a fast-growing market for electric vehicle(EV) batteries. LG Chem plans to supply over 950,000 tons of cathode materials to GM until 2030. These cathode materials will be used by LG Energy Solution and their joint venture, Ultium Cells. The amount is equivalent to batteries needed in 5 million high-performance EVs. As the market for EV batteries grows, GM has a growing need for a stable supply of cathode materials, and GM chose LG Chem as a partner for their excellent technology for high-nickel cathode materials.

LG Chem will be supplying NCMA (nickel, cobalt, manganese, aluminum) cathode materials for next-generation EV batteries. The materials are made using LG Chem’s advanced technology, and ensure an excellent output. These contain more than 90% of nickel─which determines energy density─and use aluminum for greater stability. LG Chem implements a localization strategy in North America by 2025, and plans to maintain a partnership with GM by securing a stable production capacity.

LG Chem makes forays into global market for battery materials
by strengthening global value chain!

In discussions with Janet Yellen, LG Chem suggested cooperative supply chains for battery materials. LG Chem plans to actively develop battery materials as demand increases alongside the growing EV market, strengthening their business portfolio in order to become the world’s leading battery company by expanding to include cathode materials, battery separators, CNT, thermal adhesives, anode binders, and Battery Assembly Solutions (BAS). To this end, LG Chem plans to invest $45 billion (KRW 6 trillion) by 2025, of which  more than $11 billion will be invested between 2020 and 2025 including investments from subsidiary, LG Energy Solution, in order to localize a North American supply chain and capitalize on one of the world’s largest automotive markets. Additionally, LG Chem is building a cathode material plant in Tennessee, U.S., to strengthen a global value chain for batteries. Investments in the North American battery materials market are expected to accelerate as cooperation makes headway.

Among LG Chem’s state-of-the-art materials, revenue from sales of cathode materials exceeded $745 million (KRW 1 trillion) in the second quarter of 2022, indicating strong growth potential. To further grow their sustainable battery business, LG Chem will spur their efforts of creating a virtuous cycle of resources, including battery recycling and the production of precursors and cathode materials made of recycled materials. With the goal of achieving net zero in 2050, LG Chem is employing strategies that cut carbon emissions throughout the supply chain.

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How has your daily life changed after the COVID-19 pandemic? Wearing masks, online classes, remote work, and various other changes have become part of our new normal.

In this era of heightened personal hygiene and preventive measures, LG Chem is preparing for the post-COVID-19 era with “Sustainable Antibacterial ABS,” a plastic that maintains a 99.99% antibacterial property. The following story highlights LG Chem’s dedication to enhancing antibacterial durability as part of their readiness for the post-COVID-19 era.

In the era of hygiene and sanitation, what is the ‘real’ plastic that consumers want?

Throughout the pandemic, we have seen a surge in purchases of items labeled as ‘antibacterial�?such as masks and hand sanitizers, as personal hygiene and sanitation became paramount.

The reason behind most people’s preference for antimicrobial products is simple: the power conveyed by the word �?strong>antibacterial�? It carries a strong belief in preventing the growth of bacteria. We trust that ‘antibacterial products will be cleaner’ or ‘we can use them with peace of mind.’ However, unfortunately, conventional antibacterial products fall short of our expectations.

Typically, antibacterial products are made by mixing antibacterial agents into pelletized plastic raw materials. In this case, the antibacterial agents are not evenly distributed on the surface of the plastic, resulting in uneven antibacterial properties. Moreover, the long-lasting antibacterial effect is significantly compromised. Due to the high concentration of antibacterial agents, the surface of these products often becomes rough and uneven. As a result, they are primarily used for internal components rather than visible external parts.

LG Chem has recognized the limitations of conventional antibacterial ABS and has been dedicated to researching and developing an antibacterial ABS that can be widely used for external components while earning customer trust.

Overcoming the Limitations of Antibacterial Products
with Global Market Leadership in Technology

Even for LG Chem, the global leader in ABS market share, overcoming the limitations of antibacterial ABS was no easy task. The key characteristics of antibacterial materials are intertwined in a trade-off relationship, making it challenging. Typically, when developing antibacterial materials, LG Chem considers antibacterial efficacy, durability, chemical resistance, and color (preventing discoloration/staining) as important factors. However, when one characteristic is enhanced, other characteristics tend to weaken easily.

For instance, let’s consider the scenario where we increase the number of antibacterial agents to strengthen the long-lasting antibacterial effect. Antibacterial agents, such as silver (Ag), zinc (Zn), and copper (Cu), are released from the ABS surface to the external environment. By increasing the number of antibacterial agents, more metals are released, resulting in improved long-lasting antibacterial properties. However, proportional to this increase, the quality of appearance and resistance to discoloration deteriorates.

To overcome these limitations, LG Chem applied special polymers that enhance the affinity between antibacterial metals and ABS, effectively controlling the release rate of antibacterial metals. As a result, LG Chem has successfully developed long-lasting antibacterial ABS that maintains high antibacterial efficacy without discoloration and with excellent chemical resistance. Additionally, LG Chem minimized the number of antibacterial agents, reducing potential harm to human health.

The achievement of enhancing long-lasting antibacterial properties while minimizing the number of antibacterial agents was made possible by LG Chem’s accumulated technical expertise. Starting from the production stage, LG Chem identified the optimal number of antibacterial agents, ensuring even distribution through compounding technology, and utilized special recipes and technical capabilities to create long-lasting antibacterial ABS. As a result, LG Chem has successfully developed long-lasting antibacterial ABS that consistently maintains 99.99% antibacterial efficacy, with excellent surface quality and no concerns about discoloration.

The developed antibacterial ABS by LG Chem possesses a 99.99% long-lasting antibacterial property and exhibits over twice the improved chemical resistance compared to conventional antibacterial ABS. Moreover, it has undergone global standard tests for mold resistance (ASTM D 21, ISO 856 B), resulting in the conclusion that mold cannot survive on the surface of the long-lasting antibacterial ABS. It has also received certification for being safe for human contact according to global standards for non-toxicity.

Furthermore, LG Chem’s long-lasting antibacterial ABS remains free from discoloration even under high temperature and humidity conditions, and it exhibits minimal color change caused by light exposure. Additionally, it enables the realization of various colors, making it widely applicable in household appliances such as refrigerators and air purifiers.

The New Everyday with Antibacterial ABS

LG Chem’s developed long-lasting antibacterial ABS is already being used in various products in our daily lives. Unlike the conventional antibacterial ABS that was primarily used for internal components, LG Chem’s antibacterial ABS is now applied to kitchen appliances such as refrigerator handles and dishwasher exteriors, as well as medical devices that require reduced bacterial contamination.

The vague belief associated with the term “antibacterial” is gradually becoming a reality with LG Chem’s antibacterial ABS. Experts predict that the global antibacterial ABS market will continue to grow as consumer hygiene awareness increases following the COVID-19 pandemic. In line with this trend, LG Chem plans to apply antibacterial ABS to a wide range of home appliances in the future.

Beyond kitchen appliance handles and exteriors, the long-lasting antibacterial ABS can be used in various other areas such as garment care devices, automotive interiors, and vacuum cleaners. Let’s imagine a cleaner and safer daily life together with the benefits that long-lasting antibacterial ABS brings.

LG Chem has once again demonstrated their leadership in the global ABS market by developing long-lasting antibacterial ABS that can be used for both internal and external components. LG Chem identifies the needs of people and solves them with the power of science and accumulated technological expertise. Just as they have developed long-lasting antibacterial ABS through technological innovation, LG Chem will continue to listen attentively to consumers’ stories and strive for a sustainable future.

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Cathode materials are a critical part of electric vehicle (EV) batteries, representing nearly 40% of battery production costs, and determining car performance in terms of travel distance, charge capacity, and discharge capacity. Last year, LG Chem built a facility to mass produce cathode materials, able to manufacture 120,000 tons per year. Learn more about LG Chem’s cathode materials.

Cathode materials, a critical element that decides a battery capacity and life

A lithium-ion battery consists of cathode material, anode material, a separator, and electrolytes. Among these, cathode materials are a source of lithium-ions, with the type of active cathode material* determining the battery’s capacity and average voltage. To increase energy density, it is important to maximize the energy density of active cathode materials such as nickel, manganese, cobalt, and aluminum. Nickel has high capacity, manganese and cobalt improve stability, and aluminum enhances output. These materials are mixed at various ratios, and the two most widely used mixtures are NCM (Li, O, Ni, Co, Mn) and NCA (Li, Ni, Co, Al, O).

* Active cathode materials: Materials that involve in a battery’s electrode reaction at a cathode (e.g. lithium oxides)

Structures and characteristics of cathode materials

The type of cathode materials affects a battery’s voltage, which is decided by a potential difference between a positive and a negative electrode. Cathode materials include LCO, NCM, NCA, LMO, and LFP depending on the composition of metal salt; by structure, they have three types: layered, spinel, and olivine.

A *layered structure enables to store a large number of lithium-ions between flat and wide layers. Ternary alloy including LCO, NCM, and NCA has a layered structure. LCO (Li, Co, O) is a basic form of cathode materials, and is widely used in small IT products including smartphones and laptops. LCO gives a long battery life, but is hardly used in car batteries because it has a lower energy density compared to NCM and NCA

NCM is a cathode material that added nickel and manganese to LCO. Cobalt in LCO is broken down and reconstructed with nickel, cobalt, and manganese. Recently, growing attention is given to NCM811(80% Ni, 10% Co, 10% Mn), which shows good energy efficiency due to the high content of Ni. NCA is a cathode material consisting of lithium, cobalt, aluminum, and oxygen. It has a high energy density, but due to its low level of safety, it is mostly used in small batteries.

LMO has a *spinel structure─a common structure for oxides─and less expensive by using manganese in place of cobalt. Its three-dimensional grid structure gives excellent stability. However, it has a small energy capacity and a short life. LFP has an *olivine structure whose hexahedral shape enhances stability. Performance deterioration due to charging/discharging is limited, and LFP resists heat very well. It is also economical as it uses iron instead of costly cobalt. However, compared to other cathode materials, LFP has a lower energy density, lower electric conductivity, and lower diffusion of lithium ions.

*Layered structure: The most straightforward structure of LiMO2 (M: Ni, Co, Mn)
*Spinel structure: Named after the stone spinel (MgAl2O4) also known as gahnite
*Olivine structure: A grid structure consisting of organically linked crystal hexahedrons

Manufacturing process of cathode materials

Manufacturing cathode materials goes through the stages of pre-treatment, first-round firing, post-treatment, and second-round firing. First, raw materials of *precursor and lithium are mixed with additives that are used to enhance safety. This mixture goes through a first round of firing in a kiln─temperature of 700~900℃─to synthesize with lithium oxide through oxidization.

This mixture goes through two rounds of crushing to produce powders of an optimal size called “crack,�?and then goes through sifting and removal of iron to increase the purity of nickel. This is called a post-treatment. Then the semi-finished product is blended with a coating material for surface safety, and goes through a second round of firing at a temperature of 300~400�? After another round of sifting, the final product is completed.

*Precursor: A material in the stage right before the final material A that is produced in a given chemical reaction. In a battery, a precursor indicates materials that make up cathode materials.

Cathode material plant with annual capacity of 120,000 tons

LG Chem’s fourth plant in Cheongju, Korea, is the world’s first facility with an annual production capacity of 10,000 tons of cathode materials per line. They started operation in the second half of 2022. The new production line is the same size as their competitors, but the hourly output volume is more than twice. The company will add two more lines to increase the annual output from the current 120,000 tons to 280,000 tons by 2026. Efforts are underway to develop cobalt free technology to reduce the use of cobalt which has high price volatility, and single crystal cathode materials for next-generation all-solid-state batteries.

LG Chem invested about $400 million (KRW 500 billion) in a cathode materials plant on a 60,000m² site within the fifth national industrial complex in Gumi, Korea. The company plans to complete the construction within 2023 and start operation. The Gumi plant will have exclusive production lines for NCMA (Ni, Co, Mn, Al) used in next-generation EV batteries.

LG Chem signed an MOU to build a cathode materials plant in Tennessee, U.S., with 120,000 tons of annual output capacity. The construction will begin in 2023, and the plant will start operation in late 2025 to produce 120,000 tons of cathode materials annually by 2027.

The company’s target is to achieve a quadruple growth of the battery materials business by increasing revenues from about $3.8 billion (KRW 5 trillion) in 2022 to roughly $15.4 billion (KRW 20 trillion) by 2027. LG Chem is keep making bold investments in technology and facility to become a leading global company for EV battery materials.

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In early 2022, LG Chem unveiled a plan to expand their battery materials business more than 12 times between 2021 and 2030 by increasing revenues from $1.3 billion (KRW 1.7 trillion) to $16.2 billion (KRW 21 trillion). Aspiring to become the world’s leading battery materials company, LG Chem decided to build the fourth CNT (Carbon Nanotube) plant. The purpose is to gain a competitive edge in the rapidly growing global CNT market driven by cathode materials and electric vehicle (EV) batteries. LG Chem’s CNT will be used as a cathode conductive additive by LG Energy Solution and other battery companies. LG Chem also has a plan to increase the supply of CNTs in various industries. Find out more about LG Chem’s plan to build the fourth CNT plant in terms of changes in output and future business plans.

CNT, a next-generation material and a core component of EV batteries!

CNT is a next-generation material that has the same electric and thermal conductivity as copper and diamond, and is 100 times stronger than steel. CNTs have broad applications including EV batteries, conductive paint, anti-corrosive, antistatic exterior auto parts, and a planar heating element that prevents black ice on the road. When used in cathode conductive additive for a battery, CNT boasts over 10% higher conductivity than existing carbon black material, and thus, reduces the use of conductive additive by nearly 30%. In its place, more cathode materials can be filled to increase battery capacity and life. CNTs are also deemed as a main conductive additive for next-generation batteries sector including anode and all-solid-state lithium-sulfur batteries. LG Chem supplies CNTs to battery firms, which in turn, process them into cathode conductive additives to manufacture batteries.

LG Chem’s unique CNT dispersion solution

CNTs have excellent conductivity, and it is important to disperse CNTs evenly to improve battery performance. With a cylindrical shape, CNTs are harder to distribute evenly than carbon black, and thus they perform better in a liquid form of dispersion. LG Chem’s CNT dispersion can evenly disperse CNTs in a solvent. LG Chem’s excellent quality of dispersion and processing technologies make it possible to prevent gelation of CNTs and enhance storage stability. Using CNT dispersion as a conductive additive improves battery performance.

LG Chem manufactures 6,100 tons of top-quality CNTs each year!

The newly built fourth CNT plant will produce 3,200 tons of CNT annually. Once completed, LG Chem’s gross production capacity for CNT will be 6,100 tons each year, including 1,700 tons from the first and second plants and 1,200 tons from the third plant. Improvement in reactor stability and automation of manufacturing process have improved the production efficiency, and the productivity per worker has increased by 20%. Construction of the fourth CNT plant will begin in the first half of 2023, and the new plant will begin operation in the second half of 2024.

At LG Chem’s CNT plant, thanks to the independently developed fluidized bed reactor (FBR), CNTs up to 600 tons per production line can be produced annually, the largest capacity in the world. At CNT plants, Fe is broadly used as a catalyst, but it requires a separate post-treatment process as it contains a relatively higher amount of metal and magnetic sludge compared to cobalt (Co). To address this problem, LG Chem developed a Co-based catalyst to reduce the content of magnetic sludge that affects battery quality, and could manufacture top-quality CNTs.

Rapidly growing LG Chem’s CNT business moves forward!

The CNT market for conductive additive of batteries is expected to grow to $2.3 billion (KRW 3 trillion) by 2030. Between 2021 and 2030, the global CNT demand is expected to increase by over 30% each year from 5,000 tons to 70,000 tons. Currently, LG Chem is increasing CNT revenues from new clients other than LG Energy Solution. Based on top-quality CNT, LG Chem endeavors to earn the trust of carmakers. The company also has a vision to increase CNT sales in new areas including antistatic paint, planar thermal element that prevents black ice on the road, and trays used in semiconductor manufacturing. Applying CNTs to trays used in semiconductor manufacturing increases the heat resistance property of semiconductors and helps to block dust, electromagnetic waves, and static. CNT is a versatile material and has a strong growth potential.

Based on manufacturing competitiveness and excellent quality, LG Chem strives to be the leading manufacturer of conductive additives for batteries, and make forays into the global market. LG Chem will also increase the supply of CNTs in more diverse industrial areas.

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