Origin Materials Inc. has struck a deal with Japan-based global chemical giant Mitsubishi Chemical Holdings Group to develop advanced chemicals using Origin’s process that uses wood extracts rather than petroleum-based sources.
Specifically, the partnership will develop and test wood-sourced replacements for carbon black, a chemical widely used worldwide.
“Mitsubishi Chemical Holdings Group’s deep manufacturing capabilities, technical expertise and global customer network can enable broad adoption of Origin’s technology and help drive the ‘once in a planet’ shift to sustainable materials taking place in the automotive industry,” said Origin Materials co-CEO Rich Riley, in a news release.
Carbon black is used as a filler and reinforcing component in tires, hoses and belts. It helps keep other chemical components from degrading.
Origin cites research that the global market for carbon black is projected to reach $26 billion by 2025, with about 70% of it used for tires.
West Sacramento-based Origin (Nasdaq: ORGN) uses patented techniques to make wood extracts that replace petroleum to make plastic. The company's product is a drop-in replacement for petroleum in the manufacture of PET plastic, which is the most recycled plastic on the planet. Origin’s products are also being sought by manufacturers of everything from carpet and textiles to packaging and toys.
Origin went public in June in a merger with a special purpose acquisition company. Origin is bringing to market zero-carbon alternatives to petroleum.
Origin’s first large-scale manufacturing plant has been under construction since last fall in Sarnia, Ontario, just over the Canadian border from Michigan. It's expected to open this year. In February, the company announced its second location, a 150-acre facility in Geismar, Louisiana.
The deal with Mitsubishi is the latest partnership Origin has signed with global manufacturers, including Ford Motor Co. (NYSE: F), chemical company Solvay S.A., luxury products brand LVMH Moët Hennessy Louis Vuitton and Drive+, a partnership of 11 global automotive manufacturers to bring sustainability to the automotive industry.
Origin has had previous backing from Mitsubishi Gas Chemical Co. Inc., another subsidiary of Mitsubishi Group.
Some of Origin’s early partners and investors include international food companies Nestle SA, Danone SA and PepsiCo Inc. (Nasdaq: PEP).
Those companies are also potential customers of Origin’s products, which could help the companies reduce their dependence on petroleum-based plastic.
