Korean automakers Hyundai, Kia to localize production of LFP batteries for India EVs

Korean automakers Hyundai Motor and Kia Corporation have signed a Memorandum of Understanding with Exide Energy Solutions to localize EV battery production in India.

The move, focusing on domestic manufacturing of lithium-iron-phosphate (LFP) cells, will help support the expansion of both carmakers' EV plans for the Indian market by enabling them to source locally-manufactured batteries.

Heui Won Yang, President and Head of Hyundai Motor and Kia's R&D Division, said after the signing: "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."

"Through this global partnership, we will gain a competitive advantage by equipping Hyundai Motor and Kia's future EV models in the Indian market with locally produced batteries," he added.

In a release, Hyundai said the strategic cooperation agreement marked the beginning of Hyundai and Kia's efforts to expand battery development, production, supply and partnerships in the Indian market.

"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," the release said.