In a significant move towards bolstering their presence in India’s burgeoning electric vehicle (EV) market, Hyundai Motor Company and Kia Corporation have inked a Memorandum of Understanding (MOU) with Exide Energy Solutions Ltd., a prominent Indian battery company. This collaboration aims to localize the production of EV batteries, particularly focusing on lithium-iron-phosphate (LFP) cells, for future Hyundai and Kia electric models in the Indian market.
The MOU signing ceremony, held at Hyundai Motor Group’s Namyang Research and Development Center in South Korea, was attended by key executives from both Hyundai Motor and Kia, along with Dr. Mandar V Deo, Managing Director, and CEO of Exide Energy.
India’s ambitious carbon neutrality goals and the increasing demand for electric mobility make localized battery production a strategic imperative. By partnering with Exide Energy, Hyundai and Kia are poised to gain a competitive edge by integrating locally manufactured batteries into their forthcoming EV lineup in India.
Heui Won Yang, President and Head of Hyundai Motor and Kia’s R&D Division, emphasized the significance of this collaboration, stating, “India is a key market for vehicle electrification, and securing cost competitiveness through localized battery production is crucial. Through this partnership with Exide Energy Solutions Ltd., we aim to equip our future EV models in the Indian market with locally produced batteries, enhancing our competitive position.”
Exide Energy Solutions Ltd., a subsidiary of Exide Industries Ltd., brings over 75 years of expertise in battery manufacturing to the table. With its foray into lithium-ion cell production, Exide Energy is well-positioned to support Hyundai and Kia’s battery localization efforts in India.
This strategic cooperation marks the initiation of Hyundai and Kia’s broader strategy to expand their presence in India’s EV ecosystem, reflecting the country’s rising prominence as a global automotive hub. By introducing locally produced EV models, Hyundai and Kia are poised to set new benchmarks in India’s electric mobility landscape.