Collaboration between Hyundai Motor, Kia, and Exide Energy will allow the introduction of locally manufactured LFP batteries in future electric vehicles (EVs) for the Indian market.
Hyundai Motor Company and Kia Corporation have forged a strategic alliance with Exide Energy Solutions (Exide Energy), an Indian battery manufacturer, by signing a Memorandum of Understanding (MoU). This collaboration is a significant step in their plans to expand their electric vehicle (EV) presence. The formalization of this partnership took place at the Hyundai Motor Group’s Namyang Research and Development Center in South Korea. The ceremony was attended by notable figures, including Heui Won Yang, President and Head of Hyundai Motor and Kia’s R&D Division, Chang Hwan Kim, Head of Electrification Energy Solutions Tech Unit, Duk Gyo Jeong, Head of Electric Vehicle Parts Purchasing Sub-Division, and Dr. Mandar V Deo, Managing Director and CEO of Exide Energy.
Hyundai Motor and Kia are focusing on localizing their EV battery production for the Indian market, with a particular emphasis on lithium-iron-phosphate (LFP) cells. This strategy aims to make them the first in the Indian market to utilize domestically produced batteries in their forthcoming EV models.
Heui Won Yang, President and Head of Hyundai Motor and Kia’s R&D Division, highlighted the importance of India as a crucial market for vehicle electrification, partly due to the government’s carbon neutrality objectives. He emphasized that localized battery production is essential for achieving cost competitiveness. He stated that the partnership with Exide Energy Solutions Ltd. would provide a competitive edge by ensuring that future EV models from Hyundai Motor and Kia in the Indian market are equipped with locally produced batteries.
Exide Industries, based in Kolkata, is a dominant player in India’s lead-acid battery market with over 75 years of experience. Exide Energy Solutions, a wholly-owned subsidiary of Exide Industries, was established in 2022 to venture into the lithium-ion cell, module, and pack manufacturing business, covering a range of chemistries and form factors.
This strategic cooperation with Exide Energy signifies the commencement of Hyundai Motor and Kia’s endeavours to broaden their exclusive battery development, production, supply, and partnerships in the Indian market.
India is increasingly recognized as a highly promising automotive market on a global scale, rapidly becoming a key player in the production and sales of electric vehicles. In the fiscal year 2024, retail sales of EVs in India saw a 42% year-on-year increase, reaching 1.67 million units, with electric two- and three-wheelers, cars, and SUVs reaching new heights.
