LG Chem reshuffles R&D unit to turn into EV materials maker

LG Chem Ltd., South Korea’s largest petrochemical company, is strengthening its research & development capabilities as it aims to transform a chemicals firm into a materials maker with its focus on raw materials for EV components as well as battery materials.

LG Chem, which owns the country’s No. 1 battery maker LG Energy Solution Ltd, recently expanded its advanced materials division increasing its related teams from five to eight.

While abolishing the IT material development department, the chemicals maker newly established four teams – materials development team, semiconductor materials development team, e-mobility development team and adhesives development team.

The move follows its decision late last year to spin off its biomaterial technology task force from its Future Technology Research Institute under its chief technology officer.

Most of the newly established R&D teams are responsible for developing EV materials-related technologies.

The materials development team handles next-generation materials for displays used in EVs and autonomous driving vehicles.

The e-mobility development team will be in charge of developing high-value-added film for augmented reality and virtual reality products.

“Large displays will be crucial for self-driving cars. Our R&D efforts will focus on the materials for those large screens,” said an LG Chem official.

The adhesives development team will focus on optical, insulating and heat dissipating materials for electric cars.

Using adhesives instead of nuts and bolts to assemble auto parts will make EVs much lighter, thus enabling longer driving ranges, according to LG Chem.

“The R&D reorganization is aimed at facilitating our transition from a chemicals maker into a company that focuses on materials for battery, bio and other eco-friendly materials,” said a company official.

COMPETITION WITH CHINESE CHEMICALS MAKERS

LG Chem has been shutting its base chemical production facilities to withdraw from the general-purpose chemicals market flooded with low-priced Chinese products.

Last week, it said it is closing a styrene monomer (SM) production line by the end of this month and is considering shutting another base chemicals production facility soon.

The decision comes less than a year after it shut another SM plant with a capacity of 500,000 tons in Daesan, South Chungcheong Province, pulling out of the market where Chinese peers’ aggressive inroads are driving prices sharply lower.

Last year, LG Chem also sold its factories in Ochang and Cheongju, North Chungcheong Province, which produced liquid crystal display (LCD) polarizers, as it was withdrawing from general-purpose products to focus instead on value-added materials.

Write to Hyung-Kyu Kim at khk@hankyung.com

In-Soo Nam edited this article.