 "Hyundai, Kia partner with Exide Energy for EV battery localisation in India")
South Korean auto majors Hyundai Motor Company and Kia Corporation on Monday announced a partnership with homegrown battery maker Exide Energy Solutions Ltd for electric vehicle battery localisation in India.
Hyundai Motor Company and group firm Kia Corporation have signed a Memorandum of Understanding (MOU) with Exide Energy Solutions Ltd, a leading Indian battery company, as part of their electric vehicle (EV) expansion plans, Hyundai Motor Group said in a statement.
Hyundai Motor and Kia aim to localise their EV battery production, specifically focusing on lithium-iron-phosphate (LFP) cells in line with the expansion of their EV plans for the Indian market, it added.
"This strategic move will position them as the pioneers in applying domestically produced batteries in their upcoming EV models in the Indian market," the statement said.
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," Yang added.
Hyundai Motor Group said the 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.
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Hyundai Motor India has already announced that it plans to launch its high-volume EV model in 2025. The company currently sells IONIQ5 and Kona in the EV segment. On the other hand Kia India sells the EV6 model.
Exide Energy Solutions (EES) is a wholly-owned subsidiary of Kolkata-based Exide Industries Ltd, a leading lead-acid battery supplier in India with over 75 years of experience and market leadership in lead-acid batteries.
EES 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, the statement said.