LG Chem Ltd., South Korea's leading chemical firm, said Thursday it will collaborate with Finland-based bio diesel producer Neste to develop renewable materials for its chemical products.

LG Chem and Neste signed a strategic long-term partnership to develop biopolymers and biochemicals to reduce use of fossil feedstock in the Korean company's manufacturing process.

LG Chem has a diversified chemical portfolio ranging from petrochemical products to lithium-ion batteries for electric vehicles.

The partnership is part of the leading battery maker's long-term plan to reduce carbon emissions in 2050 to 10 million tons, which is equivalent to the amount in 2019.

Neste, the world's No. 1 bio diesel company, produces renewable hydrocarbon from traceable, bio-based raw materials, such as waste and residue oils and fats, to provide a more sustainable alternative to fossil feedstock. (Yonhap)