Hyundai Motor Group, parent company of the carmakers Hyundai, Kia and Genesis, recently announced an eye-catching $26 billion plan to expand its U.S. operations over the next three years. Much of the focus is on manufacturing more cars, more quickly, along with new supplier ventures including an alternative leather partnership with the New York materials science firm Uncaged Innovations.
Leather and the global auto industry
Petrochemical-based materials like “vegan” leathers for seats, steering wheel covers, and other interior trimmings are the overwhelming choice for durability and affordability in the global auto industry. Over-reliance on these materials poses a particular challenge for electric vehicle makers seeking an edge over the competition by reducing their dependence on petrochemicals.
Natural leather is one bio-based option with a long history in the global auto industry. While leather plays a relatively small part in the vehicle supply chain, auto companies are a key buyer for hides recovered from beef and dairy operations. In the U.S. in particular, the auto industry uses about 18 percent of the hides from cattle raised for beef and dairy products, according to the Leather and Hide Council of America. The trade group expects demand from the auto industry to increase significantly, from around $36.5 billion worth of leather products globally this year to almost $57.9 billion by 2032.
In a recent article posted to its “Choose Real Leather” website, the trade group positioned leather as a natural product that replaces synthetic materials made from petrochemicals. But domesticated livestock are not free of climate impacts either. In addition to direct emissions from burping and flatulence, livestock farming is associated with forest clearing and other unsustainable land use practices that contribute to climate change. Ethical concerns over the treatment of both animals and farm workers also continue to undermine the industry’s sustainability profile.
The United Nations raised the alarm over the climate impacts of livestock farming in a widely circulated report published nearly 20 years ago, indicating that livestock account for 18 percent of greenhouse gas emissions related to human activity. More recently, in 2023 the U.N. Food and Agricultural Organization revised the figure down to a lower, but still concerning, estimate of 12 percent.
Beyond leather and petrochemicals with materials science
Hyundai is among the automakers exploring the potential for next-generation plant-based materials. The company announced last week that it’s working with the biomaterials startup Uncaged Innovations to co-develop materials that can replace leather and synthetic fabrics in vehicle interiors.
“This collaboration reinforces the Group’s leadership in material innovation and environmental responsibility, showcasing its commitment to pioneering scalable, next-generation materials to shape the future of sustainable mobility,” Hyundai emphasized.
Uncaged’s solution works at a molecular level to transform grain products into a foundational material that replicates the durability and flexibility of the protein collagen. The company says its grain-based alternatives mimic the skin-like feel of animal leather with a 95 percent cut in greenhouse gas emissions. The production process also yields significant water savings of 89 percent while requiring 71 percent less energy, according to a third-party lifecycle analysis.
Deploying plants to replicate the durability and aesthetic appeal of leather is a next-level challenge for the materials industry, but the prospect of replacing both animals and petrochemicals has attracted investor interest. After earning early-stage funding through the U.S. Small Business Innovation Research program, in 2023 UNCAGED raised $2 million in pre-seed investment from the InMotion Ventures branch of Jaguar Land Rover, along with VegInvest, Stray Dog Capital, Alwyn Capital, Hack Capital and GlassWalls Syndicate. The startup added another $5.6 million in seed funding last year.
The Hyundai-Uncaged partnership is the latest example of the growing connection between automakers and the advanced materials industry to rethink vehicle interiors. In June, for example, the New Jersey startup Modern Meadow partnered with Mercedes-Benz to design a new leather alternative that combines plant-based proteins and polymers with chemically recycled racing tires. Other major automakers like Volkswagen and General Motors have also made investments in startups developing plant-based leather alternatives. Outside the auto industry, independent fashion brands including Kaila Katherine and Melina Butcher will feature Uncaged’s Elevate line of leather replacements in upcoming products under the umbrella of The Uncaged Collective.
