LG Chem, South Korea’s leading chemicals company, is ramping up its automotive adhesives business as the rising market for electronic components in vehicles is expected to fuel demand.

On Wednesday, LG Chem announced it had secured a deal to supply its heat-dissipating adhesives to a US-based electric vehicle company. The client’s name was not immediately disclosed due to confidentiality reasons.

The heat-dissipating adhesive is used to bond battery cells within modules and packs. With high thermal conductivity and electrical insulation, this adhesive is essential for thermal management and performance stability, LG Chem explained.

LG Chem expanded into the automotive adhesives business in 2018 by acquiring Uniseal, a US company specializing in automotive adhesives. Uniseal, the leading provider of automotive body adhesives in North America, has recently launched new adhesive products free of hazardous chemicals and capable of reducing carbon emissions.

LG Chem said it plans to further strengthen its automotive adhesives business, with the market expected to grow due to increasing demand for EV components, lightweight materials, and environmentally friendly solutions driven by electrification and autonomous driving trends. The automotive adhesives market is projected to expand from 9 trillion won in 2024 to 16 trillion won by 2030 ($6.5 billion to $11.6 billion), it added.

“We aim to leverage our accumulated expertise in material synthesis, property design, and manufacturing processes from fields like display and semiconductor materials to foster our mobility materials business actively, enhancing our market position,” said Shin Hak-Cheol, vice president of LG Chem.

Currently, LG Chem holds over 180 patents for its heat-dissipating adhesives and is developing products that improve thermal performance while helping clients cut costs and reduce weight.

In addition to heat-dissipating adhesives, LG Chem is also working on other adhesive materials, including polyimide varnish and silver nanopaste for motors, inverters and converters. The company is also expanding into other automotive electronic components, including camera sensors, headlights and vehicle displays.