Hyundai, Kia join hands with this Indian company for EV battery localisation

Korean carmakers Hyundai Motor Company and Kia Corporation have signed a pact with Indian battery company Exide Energy Solutions for strategic cooperation as part of their electric vehicle (EV) expansion plans.

A Memorandum of Understanding (MoU) was signed between the three companies at Hyundai Motor Group's Namyang Research and Development Center in South Korea.

With the expansion of their EV plans for the Indian market, Hyundai and Kia aim to localise their EV battery production, specifically focusing on lithium-iron-phosphate (LFP) cells.

«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 R&D Division, Hyundai and Kia. «Through this global partnership with Exide Energy Solutions, we will gain a competitive advantage by equipping Hyundai and Kia's future EV models in the Indian market with locally produced batteries,» he added.

Kolkata-based Exide Industries has over 75 years of experience in lead-acid batteries. Exide Energy Solutions is a wholly owned subsidiary of Exide Industries, 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 and Kia's efforts to expand its exclusive battery development, production, supply and partnerships in the Indian market.

Hyundai currently offers two EVs, the Kona Electric and the Ioniq 5, in India, while Kia sells the EV6.