Hyundai and Kia Exide Energy collaborate on EV battery localisation in India

April 8, 2024 3:47 pm

Hyundai Motor and Kia have partnered with Exide Energy to localise EV battery manufacturing in India, with an emphasis on lithium-iron-phosphate (LFP) cells. This is a strategic step to grow their exclusive battery development, manufacture, supply, and alliances in the Indian market.

Hyundai Motor and Kia Corporation (Kia) executed a Memorandum of Understanding (MOU) for strategic collaboration with Exide Energy Solutions Ltd. (Exide Energy), a major Indian battery manufacturer, as part of their electric vehicle (EV) expansion plans.

Hyundai Motor and Kia intend to localise EV battery manufacture, with a focus on lithium-iron-phosphate (LFP) cells, as their electric vehicle plans for India expand. This strategic decision will position them as pioneers in using domestically produced batteries in upcoming EV models in India.

“India is a key market for vehicle electrification due in part to the government’s carbon neutrality goals, which makes securing cost competitiveness through localised battery production crucial,” said Heui Won Yang, President and Head of Hyundai Motor and Kia’s R&D Division. “Through this global partnership with Exide Energy Solutions Ltd., we will gain a competitive advantage by equipping Hyundai Motor and Kia’s future EV models in the Indian market with locally produced batteries.”

Kolkata-based Exide Industries Ltd., India’s premier lead-acid battery provider, has over 75 years of experience and leads the industry in lead-acid batteries. Exide Energy Solutions Ltd. is a wholly owned subsidiary of Exide Industries Ltd., founded in 2022 to manufacture Lithium-Ion cells, modules, and packs in a variety of chemistries and form factors.

This strategic collaboration with Exide Energy represents the start of Hyundai Motor and Kia’s attempts to grow their exclusive battery development, manufacture, supply, and alliances in the Indian marketplace.

India is widely regarded as a highly promising automotive market, and the country is quickly developing as a key participant in the manufacturing and marketing of EVs. Recognizing the strategic importance of the Indian market, Hyundai Motor and Kia are taking the lead by releasing EV cars to establish themselves as the industry leaders.

The signing ceremony took held at Hyundai Motor Group’s Namyang Research and Development Center in South Korea, and was attended by Heui Won Yang, Chang Hwan Kim, Duk Gyo Jeong, and Mandar V Deo, Exide Energy’s Managing Director and CEO.