Anil Ambani-led Reliance Group is likely to tie up with South Korean diversified business LG to launch electric vehicles (EV) and charging infrastructure in India, two sources familiar told Infralogic.

They did not provide details beyond saying that land for the first manufacturing facility has been identified. An announcement is likely in the first half of this year, they said.

Reliance hired Sanjay Gopalakrishnan, a former India executive at China’s BYD Co to advise on its EV venture, a newswire reported last September. It also hired consultants to study the feasibility of building a plant to manufacture 250,000 electric vehicles annually, to be increased later, the report said without naming the consulting firm.

Annual sales of EVs in India increased 26.5% in 2024 to 1.94 million units, according to a 30 December local media report citing government data. EV penetration rose to 7.46% from 6.4% in 2023, the report stated.

The government announced its PM E-DRIVE scheme with a financial outlay of INR 109bn (USD 1.3bn) last year, with effect from 1 October till 31 March 2026. The primary goal is to accelerate the adoption of EVs and develop essential charging infrastructure.

In November last year, Reliance announced its Vision 2030 strategy, targeting businesses and projects in new growth areas.

The previous month, it entered the renewables sector, announcing plans to establish 1.2 GW of solar and hydroelectric projects in neighbouring Bhutan and signing an agreement with its sovereign fund Druk Holding and Investments.

Reliance also announced a project in India to establish a manufacturing facility for explosives, ammunition and small arms.

The group, which is present in sectors including energy distribution and metro, said last October that Reliance Power and Reliance Infrastructure have repaid and settled dues, and are free of debt. Reliance Power has an installed capacity of 5.3 GW.

Seoul-based LG Corp. officially launched its vehicles solutions business division in 2013, according to its website. It expanded reach into major car markets in 2016 and 2017, including in Asia, where it set up a production subsidiary in China and an office in Japan.

In 2021, it established LG Magna e-Powertrain, a joint venture with Canada-based global auto parts maker Magna International, to produce electric vehicle powertrains.

Reliance Group and LG did not respond to requests for comment.