Woven Capital leads Series C round to
advance the circular economy by diverting used tires from landfills
and supporting development of high-performance recycled car
parts
SEOUL,
South Korea, June 18,
2024 /PRNewswire/ -- LD Carbon, a leading producer of
recovered carbon black, closed a $28M
Series C funding round led by Toyota's growth fund, Woven
Capital, with participation by Meritz Securities, Investwith,
Industrial Bank of Korea, Hyundai Motor Group ZER01NE, Elohim
Partners and New Main Capital. LD Carbon will use the investment to
scale operations to recycle end-of-life tires and material from
end-of-life vehicles into recovered carbon black and pyrolysis oil
through pyrolysis and material recovery technology, which in turn
can be used to create new automotive parts and tires. The
investment will advance LD Carbon's mission of accelerating the
circular economy while delivering material cost and carbon savings
to global customers.
Manufacturing carbon black is a highly polluting process,
generating 25 million metric tons of CO2 annually, while another
1.6 million metric tons come from the 28% of all waste tires that
are burned — the combined CO2 equivalent of more than 9M passenger vehicles. LD Carbon's pyrolysis and
material recovery process uses patented recovered carbon black
manufacturing technology to provide nearly 100% recovery of waste
tires, providing an environmentally safe option for recovered
carbon black ("rCB") and developing pyrolysis oil.
"LD Carbon is solving a tough chemistry problem that continues
to challenge manufacturers across the automotive supply chain as
they face increasing pressure to embrace sustainability goals,"
said Prashant Bothra, Woven Capital
principal who is joining the LD Carbon board. "With a major plant
under construction, the company is scaling their proven technology
to maximize productivity and reduce the cost of creating
high-performance recovered carbon black, offering substantial value
compared to virgin materials. With regulatory and corporate
tailwinds, a strong sales pipeline, and a first-mover advantage in
Asia, we believe LD Carbon is
well-positioned to play an important role in the sustainable
future."
Automakers are increasingly adopting increased recycled content
for cars. This demand is driven by new corporate net-zero targets,
emissions requirements, and European Commission proposals calling
for car manufacturers to use 25% recycled plastic content, of which
at least 5% must come from end-of-life vehicles.
"Our mission is to dramatically improve the sustainability
profile of the automotive industry, while lowering costs," said
Seong Mun Baek, CEO and co-founder
of LD Carbon. "Partnering with Woven Capital and other strategic
investors will give us invaluable insights into scaling operations
to support global OEMs as they seek to offer more sustainable
vehicles to discerning consumers and business customers. Together,
we can ensure automotive and its related industries are more
environmentally friendly than ever while meeting high standards for
cost and performance."
LD Carbon is a leading producer of recovered carbon black (rCB)
and tire pyrolysis oil (TPO) derived from waste tires. The
company's existing plant in Gimcheon, South Korea, has an annual capacity of over
7,000 tons of rCB, which is supplied to major tire and rubber
product manufacturers. Additionally, LD Carbon has secured a
10-year supply agreement with SK Incheon Petrochemicals for its
tire pyrolysis oil. The company is investing in the construction of
Asia's largest tire pyrolysis
plant in Dangjin City, Chungcheongnam-do, with completion targeted
in 2024. Its annual capacity will be 50,000 tons of end-of-life
tires turned into 23,000 tons of TPO,20,000 tons of rCB, and 7,000
tons of other valuable gas and materials. LD Carbon is also
co-developing key product specifications alongside industry leaders
like several major global tire makers.
About LDC
LD Carbon Co., Ltd is an eco-friendly material industry company,
which has developed leading technologies to produce green carbon
black and pyrolysis oil from end-of-life tires. LD Carbon's tire
pyrolysis oil and recovered Carbon Black have passed quality
assurance test programs from some of the leading global
petrochemical and tire companies. LDC is building its first,
mass-production pyrolysis factory, with 50ktpa end-of-life tire
pyrolysis capacity in South Korea
with deployment plan for the following plants in the other APAC
region with prominent industrial groups. Learn more at
https://en.ldcarbon.co.kr/.
About Woven Capital
Woven Capital is Toyota's growth fund dedicated to realizing the
promise of mobility — how people, goods, information and energy can
move. Our global team of investors connects the world's most
promising innovators with the world's most trusted automotive
brand. Founded in 2021, we are investing nearly $800 million in startups that create new ways to
connect cities, advance automation, harness and store energy,
further electrification, and make our vehicles smarter. Learn more
at woven.vc.
View original content to download
multimedia:https://www.prnewswire.com/news-releases/ld-carbon-closes-28m-investment-to-scale-production-of-sustainable-carbon-black-and-pyrolysis-oil-302175584.html
SOURCE LD Carbon