In a significant collaboration, South Korean automotive giants Hyundai Motor Company and Kia Corporation have joined forces with Indian battery manufacturer Exide Energy Solutions Ltd to localize electric vehicle (EV) battery production in India.
Under a Memorandum of Understanding (MOU) signed between Hyundai Motor Group and Exide Energy Solutions Ltd, the partnership aims to bolster EV battery localization efforts, particularly focusing on lithium-iron-phosphate (LFP) cells, aligning with the expansion plans for the Indian EV market.
This strategic initiative positions Hyundai and Kia as pioneers in integrating domestically manufactured batteries into their forthcoming EV models for the Indian market, stated a Hyundai Motor Group spokesperson.
India’s commitment to vehicle electrification, driven by government carbon neutrality targets, underscores the significance of cost competitiveness through localized battery production, emphasized Heui Won Yang, President and Head of Hyundai Motor and Kia’s R&D Division.
By leveraging the global partnership with Exide Energy Solutions Ltd, Hyundai and Kia intend to gain a competitive edge by outfitting their future EV models in the Indian market with locally sourced batteries, Yang added.
The collaboration with Exide Energy signifies the commencement of Hyundai and Kia’s endeavors to expand their proprietary battery development, production, supply, and partnerships within the Indian market.
Hyundai Motor India has already disclosed plans to introduce a high-volume EV model by 2025, complementing its current offerings of the IONIQ5 and Kona in the EV segment. Meanwhile, Kia India markets the EV6 model.
Exide Energy Solutions (EES), a subsidiary of Kolkata-based Exide Industries Ltd, brings over 75 years of expertise and market leadership in lead-acid batteries to the table. Established in 2022, EES ventured into manufacturing Lithium-ion cells, modules, and packs, offering a diversified portfolio of chemistries and form factors, as per the statement.
