ADM and LG Chem Partner to Build U.S. Lactic Acid Plant, Boosting Bioplastics and Sustainable Products

Archer Daniels Midland (ADM), a global leader in nutrition and biosolutions, and South Korea’s LG Chem, a top petrochemical and advanced materials company, have signed a memorandum of understanding (MoU) to explore U.S. production of high‑purity, corn‑based lactic acid. This collaboration targets the rising demand for plant‑based ingredients across food, feed, cosmetics, and especially bioplastics.

The MoU, signed by ADM’s Chairman and CEO Juan Luciano and LG Chem’s Vice Chairman and CEO Hak Cheol Shin, outlines plans to launch a joint venture in early 2022. The venture will build, own, and operate a commercial‑scale facility in the United States to produce lactic acid at scale and quality that meets the stringent needs of downstream applications.

According to Grand View Research, the global lactic acid market was valued at roughly $2.7 billion in 2020 and is projected to grow at an annual rate of 8% as the ingredient’s versatility expands into new sectors.

In a second, complementary venture, the partners will use the lactic acid to manufacture and commercialize polylactic acid (PLA), a biodegradable polymer used in everything from food packaging to apparel and upholstery. MarketsandMarkets estimates that the global bioplastics and biopolymers market will rise from $10.7 billion in 2021 to $29.7 billion by 2026, an impressive CAGR of 22.7%.

Beyond these two projects, ADM and LG Chem will jointly develop additional biomaterials, positioning themselves at the forefront of biochemical and sustainability innovation.

“Consumers today prioritize environmentally friendly, responsibly produced products. ADM is responding by expanding our BioSolutions platform across high‑margin, sustainable sectors such as pharmaceuticals, personal care, textiles, paper products, and even aerospace adhesives,” said Luciano. “Partnering with LG Chem allows us to scale U.S. lactic acid production and meet the growing demand for plant‑based solutions.”

Shin added, “This joint venture marks the start of a new journey toward a sustainable business model that benefits the environment and society. With a stable supply of raw materials, LG Chem will accelerate the commercialization of biodegradable resins that tackle climate change and plastic waste. We are committed to carbon‑neutral growth as a leading sustainability champion.”

In addition to its role in PLA production, the lactic acid produced by the joint venture will be sold for a wide range of food and pharmaceutical applications.