LG International Corp., the trading arm of South Korea’s LG Group, has signed a tentative deal with the Iranian government to cooperate in developing electric vehicles and the requisite infrastructure, according to media reports.
LG International will oversee the project jointly with the Iranian government. Other LG entities—including LG Electronics, LG Chem and LG Innotek—will lead efforts to develop electric motors, batteries and key auto parts, the company said, according to a report from Iran’s Mehr News Agency.
According to the deal, as reported in The Chosun Ilbo, LG will develop 20 EVs for automaker Iran Khodro by 2018 and set up charging stations in Tehran. They also agreed to produce about 60,000 EVs by 2023.
Other details on the terms of the agreement were not known. Both sides are seeking to finalize the deal within this year.