Hyundai Motor Company (Hyundai Motor) and Kia Corporation (Kia) on Monday announced signing a Memorandum of Understanding (MOU) for strategic cooperation with India’s Exide Energy Solutions Ltd. (Exide Energy) as part of their electric vehicle (EV) expansion plans.
With the expansion of their EV plans for the Indian market, Hyundai Motor and Kia aim to localize their EV battery production, specifically focusing on lithium-iron-phosphate (LFP) cells. This strategic move will position them as the pioneers in applying domestically produced batteries in their upcoming EV models in the Indian market, said Hyundai in a statement.
“India is a key market for vehicle electrification due in part to the government’s carbon neutrality goals, which makes securing cost competitiveness through localized 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 is India’s top player in lead-acid batteries. Exide Energy Solutions Ltd. is a wholly owned subsidiary company of Exide Industries Ltd., which was established in 2022 to foray into the business of manufacturing Lithium-Ion cells, modules and packs incorporating a portfolio of multiple chemistries and form factors.
This strategic cooperation with Exide Energy marks the beginning of Hyundai Motor and Kia’s efforts to expand its exclusive battery development, production, supply and partnerships in the Indian market, Hyundai said in a statement. Kia and Hyundai Motor Group, two of Korea’s biggest auto brands, operate independently, but Hyundai is the parent company of Kia Motors.
“India is recognized as a highly promising automotive market worldwide and the country is rapidly emerging as a critical player in the production and sales of EVs. Realizing the strategic importance of the Indian market, Hyundai Motor and Kia are taking the lead in the Indian market by introducing its EV models to establish itself as the frontrunner in the Indian automotive industry,” said Hyundai in a statement.
Following this announcement, shares of Exide Industries gained 10% (upper circuit) on the National Stock Exchange.
Hyundai is gearing up to launch high-volume electric vehicles (EVs) starting from early 2025. The company has already announced massive investments in Tamil Nadu to set an EV manufacturing ecosystem.