ADM and LG Chem plan to produce lactic acid and PLA in USA

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Type of post: NEWS IN BRIEF.

ADM and LG Chem have signed a memorandum of understanding to explore US-based production of lactic acid to meet growing demand for a wide variety of plant-based products, including bioplastics.

Figure 1. The MoU was signed by ADM Chairman and CEO Juan Luciano and LG Chem Vice Chairman and CEO Hak Cheol Shin at ADM’s global headquarters in Chicago

Under the terms of the agreement, the two companies plan to take steps toward launching a joint venture in early 2022 that would build, own and operate a US-based facility to produce high-purity corn-based lactic acid on a commercial scale. Moreover, the companies will collaborate on a second joint venture that would use lactic acid produced by the first joint venture to produce and commercialize polylactic acid.

The two companies also agreed to actively cooperate in the joint development of technology for other biomaterials that can be applied in the biochemical and sustainability sector in the future. In addition to its use in the production of PLA, the lactic acid produced by the proposed joint venture would be sold for use in a wide variety of food and pharmaceutical applications.

This is not the first time LG Chem and ADM have worked together to meet growing demand for bio-based products. In 2019, the companies signed a joint development agreement to secure mass production technology to create biobased acrylic acid, which can be used for the manufacture of superabsorbent polymers used in diapers and other hygiene products.

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