LG Chem to Add Iran to Growing Global Footprint

LG Chem has revealed that it is holding talks with Iranian automaker, Iran Khodro Co. as it seeks to expand its global footprint. Iran Khodro Co, which is based in Tehran is one of the largest automotive manufacturers in Iran and is interested in sourcing battery cells for its new plug-in electrified vehicles (PEVs). According to the company’s CEO, “negotiations are underway” and they are inching closer to a deal.

Iran Khodro is planning to produce 60,000 PEVs by 2023 and is hoping to have LG Chem as one of its key suppliers for the batteries and other vital components. According to an LG Chem spokesperson, the company is also working on plans to establish charging stations and produce electric vehicles in Iran.

Ali Izadi-Najafabadi, an analyst at Bloomberg New Energy Finance said that electrification of the transport sector in Iran could reduce the demand for petrol in addition to reducing the level of greenhouse emissions and air pollution in Iran. The country does have abundant oil reserves, but lacks the refining capacity needed to meet its domestic needs. Hence, it has to rely on imports and the introduction of electric cars would be of great benefit to the country.

LG Chem is on an expansion drive. The opened a lithium-ion battery plant in Poland in April to cater to the growing demand from European auto manufacturers. It also has factories in the United States, South Korea and in China.