Iran Khodro Co., an automaker in Tehran, is in talks with LG International Corp. to develop electric vehicles for the Iranian market.

“Negotiations are under way,” said Hashem Yeke Zare, managing director of Khodro. The companies may clinch the deal in autumn, he said in an interview in Tehran.

LG International, which is based in Seoul, would supply batteries and other components to the automaker and install charging stations. Khodro would make the cars. The partners aim to manufacture 60,000 vehicles by 2023.

“We are currently carrying out the plans to developing electric vehicles and to setting up charging infrastructure in Iran,” said an LG spokesman. The company declined to give further details before the deal closes.

“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,” said Ali Izadi-Najafabadi, an analyst at Bloomberg New Energy Finance. “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.”

The country also has high levels of pollution, especially in the capital city. Particular matter that is 2.5 micrometers in diameter, known as PM2.5, is generally above World Health Organization standards, according to the website of Tehran Air Quality Control Co.

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