• Unveils a closed-loop automotive recycling solution turning end-of-life parts into new products
• Drives innovation in recyclable automotive materials

SK Chemicals showcased its latest sustainable recycling innovations for the automotive sector at the 2025 Auto Parts Industry ESG∙Net-Zero Expo.

On March 28, SK Chemicals (CEO: Ahn Jae-hyun) announced its participation in the event, held from March 23 to 25 at the aT Center in Yangjae-dong, Seoul.

The expo, jointly organized by Hyundai Motor Company, Kia Corporation, and various government agencies, aimed to support environmental, social, and governance (ESG) management practices and promote carbon neutrality initiatives across the automotive parts and materials industries.

At the exhibition, SK Chemicals introduced its "Car-to-Car Closed-Loop Solution," a comprehensive system spanning the entire lifecycle—from collecting end-of-life vehicle parts and converting them back into raw materials, to using circular recycling technologies to create new materials and commercial products.

A major highlight was the company's demonstration of how used airbags can be collected, chemically recycled, and re-manufactured into new airbags, effectively closing the recycling loop within the automotive industry.

A closed-loop recycling system refers to a new ecosystem where discarded plastics are chemically deconstructed—such as through depolymerization—and reverted back to their original raw material form. This process enables the production of new plastics that retain the same quality and performance as virgin materials, even after repeated recycling—unlike conventional mechanical recycling methods.

Because of these advantages, chemical recycling technologies are particularly suited to industries such as automotive and electronics, which demand high mechanical strength and precision quality—well beyond the requirements for standard consumer products such as plastic water bottles. SK Chemicals emphasized that its solution is ideally positioned to meet the rising demands of regulations such as the EU’s End-of-Life Vehicles (ELV) Directive.

At its booth, SK Chemicals also showcased a wide range of recyclable materials and their applications within the automotive sector. Among the key highlights was SKYPET CR, a polyethylene terephthalate (PET) material developed using circular recycling technology. SKYPET CR offers durability and hydrolysis resistance on par with petroleum-based plastics, making it ideal for use in automotive interior fibers and safety equipment. Demonstrated applications included headliners, seats, crash pads, floor mats, door panels, door armrests, seatbelts, and airbags.

SK Chemicals also presented CR PBT (Circular Recycled Polybutylene Terephthalate), a recycled material applied to headlamp bezels, as well as FLEXIA, a soft polyester material designed for use in floor mats as sound insulation. Another material on display was PO3G, a 100% bio-based polyol derived from plants, which is used in the production of synthetic leather products.

Among these, FLEXIA attracted particular attention. FLEXIA enables single-material construction using only polyester, significantly enhancing recyclability compared to traditional mats composed of mixed materials such as nylon, polyester, and PVC. By allowing manufacturers to transition from multi-material to single-material floor mats, FLEXIA makes it easier to disassemble, sort, and recycle components after a vehicle’s end of life. Achieving higher recycling rates requires either easily separable materials or the use of single-material designs to streamline the recycling process.

Kim Hyun Suk, Head of the Recycling Business Division at SK Chemicals, stated, "As carbon neutrality and vehicle recyclability regulations—such as the EU’s ELV directives—become increasingly stringent, SK Chemicals will continue to collaborate with leading industry players to enhance recyclability through depolymerization technology while delivering the high-performance materials the automotive industry demands."

Reinforcing its leadership in circular recycling, SK Chemicals became the first in the world in 2023 to successfully commercialize depolymerization-based chemical recycling technology. This groundbreaking achievement allows for the recycling of not only clear plastic bottles but also colored containers, films, and fibers, expanding its potential applications across industries such as automotive, home appliance, and fashion.

# Photo Caption: An SK Chemicals employee explains the company's closed-loop recycling process by showcasing raw materials made from the depolymerization of ELV airbag parts at their exhibition booth.