Origin Materials Inc. has a partnership with South Korean industrial conglomerate Hyosung Advanced Materials Corp. to use Origin's zero-carbon plastic to make sustainable and high-value specialty materials.
West Sacramento-based Origin (Nasdaq: ORGN) has developed technology and processes to turn wood waste materials into zero-carbon plastic that doesn’t use petroleum products.
"Partnering with Hyosung Advanced Materials is a significant milestone in our mission to transition the world to sustainable materials," said Origin Materials co-CEO Rich Riley, in a news release. "The opportunity for working together is remarkably broad, and we are excited to develop high-value products for use in a wide range of end markets and applications including batteries, automotive and apparel."
Hyosung Advanced Materials is part of Hyosung Corp., a conglomerate that works in textiles, chemicals, information technology, industrial materials, electronics and automotive industries. It's the largest global provider of polyester tire reinforcements.
Origin's product is a drop-in replacement for petroleum in the manufacture of PET plastic, which is the most recycled plastic on the planet. The company’s products are being sought by manufacturers of everything from carpet and textiles to packaging and toys.
As part of its partnership with Origin, Hyosung signed a capacity reservation agreement to purchase sustainable carbon-negative materials from Origin Materials, including PET and a hybrid polymer PET/F for use in tire cord applications, and hydrothermal carbon for use in battery materials, as well as other derivatives for use in spandex applications in the apparel industry, Origin said.
"We are excited to be a partner with Origin Materials to take this pathway together to net zero through this innovative technology development and commercialization effort," said Young Joon Lee, vice president at Hyosung, in a news release. "Sustainability is at the heart of Hyosung’s growth strategy."
Origin completed its first manufacturing plant over the winter, and it is expected to begin operations in the second quarter.
Origin had signed agreements for capacity reservations to sell $9.3 billion worth of its materials, as of the end of 2022.
The first Origin manufacturing plant in Sarnia, Ontario, is about a $130 million investment. Origin is also in the process of developing a second plant, to be completed mid-2025 in Louisiana, and a third to begin operating in 2027. The plant in Louisiana will be a $1 billion investment.
The company went public in June 2021.
