LG Chem may add the Middle East to its list of global regions served as talks continue with an Iranian automaker.
Iran Khodro Co., an automaker based in Tehran, is reportedly in discussions with LG Chem to provide battery cells for its upcoming plug-in electrified vehicles (PEVs). Iran Khodro’s CEO Hashem Yekke-Zare, says that “negotiations are underway” and that a deal may be struck as soon as this fall.
Iran Khodro plans to produce 60,000 PEVs by 2023, and LG Chem would be a key supplier. LG Chem is being asked to supply the battery cells and also other vital components to the Iranian automaker.
“We are currently carrying out the plans to develop electric vehicles and to set up charging infrastructure in Iran,” an LG Chem spokesperson said.
“Iran would certainly benefit from electrification of its transport sector as it would lower demand for gasoline and help with air pollution and greenhouse gas emissions, Despite ample oil reserves, Iran does not have sufficient domestic refining capacity to meet its gasoline demand, so it has had to rely on imports,” said Ali Izadi-Najafabadi, an analyst at Bloomberg New Energy Finance.
In April, LG Chem took steps forward in opening a lithium-ion battery plant in Poland to meet rising demand from European automakers. That would add Europe to its list of regions served along with battery factories in China, South Korea, and the U.S.