LG Chem has joined hands with Archer Daniels Midland (ADM) of the United States to set up an eco-friendly bio plastic plant in the U.S. The company announced on Aug. 16 that it signed an agreement with ADM to launch two joint ventures, one for lactic acid (LA) and the other for poly lactic acid (PLA). 

ADM is a global leader in nutrition and sustainable products and solutions. It has a global agricultural supply chain and processing technology, and LG Chem has cooperated with it in developing plant-based bio materials. In September last year, the two companies concluded a heads of agreement (HOA) signed by the two companies in September of last year. The two joint ventures are intended to respond to the growing demand for plant-based products and bioplastics. GreenWise Lactic is a corporation that will produce 150,000 tons of high-purity corn-based lactic acid annually, while LG Chem Illinois Biochem will use GreenWise Lactic’s lactic acid to produce 75,000 tons of bioplastics annually, an amount enough to produce 2.5 billion 500ml eco-friendly water bottles. The production facility will be built in Decatur, Illinois, U.S. Construction is scheduled to begin in 2023 for completion by 2025. LG Chem is the first Korean company to build an integrated PLA plant that can handle the whole production process, ranging from raw materials to the final product.  PLA is a representative biodegradable plastic made with lactic acid produced by fermenting corn, and is mainly used to produce food containers, straws, water bottles, tableware, and tea bags that are harmless to the human body. PLA is naturally decomposed within a few months by microorganisms when certain conditions are met. It also emits only a quarter of greenhouse gases during the production process compared to general plastics. Global demand for bioplastics is projected to grow from US$10.7 billion in 2021 to US$29.7 billion in 2026, which translates into an annual growth rate of 22.7%. ADM CEO Juan R. Luciano said, “We’re pleased to expand our collaboration with LG Chem, and we’re planning to take the next growth step, greatly expanding our ability to meet growing demand for plant-based solutions.”