South Korean automotive giants Hyundai Motor Company and Kia Corporation have forged a significant partnership with India’s own battery manufacturer, Exide Energy Solutions Ltd, aimed at localizing electric vehicle (EV) battery production in the country. The collaboration, announced on Monday, underscores Hyundai and Kia’s commitment to expanding their EV presence in the Indian market.
According to a statement from Hyundai Motor Group, the memorandum of understanding (MOU) signed between Hyundai, Kia, and Exide Energy Solutions Ltd signifies a strategic move towards localizing EV battery production, particularly focusing on lithium-iron-phosphate (LFP) cells. This initiative aligns with the companies’ plans to enhance their EV offerings tailored for Indian consumers.
The statement highlighted the significance of leveraging domestically produced batteries in Hyundai and Kia’s future EV models in India, positioning them as pioneers in the adoption of locally sourced components. This strategic decision is driven by India’s pivotal role in vehicle electrification, spurred by the government’s ambitious carbon neutrality targets.
Heui Won Yang, President and Head of Hyundai Motor and Kia’s R&D Division, emphasized the importance of securing cost competitiveness through localized battery production to effectively penetrate the Indian EV market. Yang expressed confidence that the collaboration with Exide Energy Solutions Ltd will provide Hyundai and Kia with a competitive advantage in offering locally manufactured batteries in their upcoming EV models.
The partnership with Exide Energy Solutions Ltd marks the beginning of Hyundai and Kia’s efforts to expand their battery development, production, and supply capabilities in India. Hyundai Motor India has already announced plans to introduce a high-volume EV model by 2025, complementing its existing offerings like the IONIQ5 and Kona. Similarly, Kia India has entered the EV segment with its EV6 model.
Exide Energy Solutions Ltd, a subsidiary of Exide Industries Ltd based in Kolkata, boasts over 75 years of experience and market leadership in lead-acid batteries. Established in 2022, EES ventured into manufacturing lithium-ion cells, modules, and packs, offering a diverse portfolio of chemistries and form factors.
With this collaboration, Hyundai, Kia, and Exide Energy Solutions Ltd are poised to contribute significantly to India’s transition towards sustainable mobility and reinforce the country’s position as a key player in the global EV market.
