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LG Chem signs first adhesives supply deal with U.S. EV battery firm

Published: 30 Oct. 2024, 18:34

LG's Seoul headquarters in Yeouido, western Seoul [YONHAP]

LG Chem, Korea's leading chemical firm, said Wednesday it will strengthen its presence in the global automotive adhesives market under its business diversification strategy.

LG Chem plans to supply thermally conductive adhesives to an unidentified U.S. EV battery maker within the year, the company said in a statement.

It is the first time for LG Chem to have an adhesives supply deal with a North American EV battery firm.

Thermally conductive adhesives, used to bond battery cells to modules or packs, are essential for thermal management and performance maintenance due to their high thermal conductivity and electrical insulation, according to the company.

"Based on our expertise in the fields of electronics materials for the display and semiconductor industry, we will actively foster the mobility materials business as a future growth driver," LG Chem Chief Executive Shin Hak-cheol said in the statement.

In 2018, LG Chem acquired leading U.S.-based automotive adhesive firm Uniseal to enter the new business.

The automotive adhesives market is expected to grow from 9 trillion won ($6.7 billion) this year to 16 trillion won in 2030 on rising demand for electronic components due to electrification and autonomous driving, as well as demand for lighter and more eco-friendly materials, it said.

Yonhap