Hyundai Motor, Kia strike strategic partnership with Indian battery major, Exide Energy

Making inroads into India's battery development and production ecosystem, Hyundai Motor Company and Kia Corporation announced earlier today (April 8) that they have entered a strategic partnership with Exide Energy Solutions Ltd (Exide Energy) for electric vehicle battery localization.

As per the Memorandum of Understanding signed between the partners, all future Hyundai and Kia EV models in the Indian market will be equipped with locally produced LFP (lithium-iron-phosphate) batteries.

"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," 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."

The MoU signing ceremony took place at Hyundai Motor Group's Namyang Research and Development Center in South Korea, and was attended by Heui Won Yang, President and Head of Hyundai Motor and Kia's R&D Division; Chang Hwan Kim, Head of Electrification Energy Solutions Tech Unit; Duk Gyo Jeong, Head of Electric Vehicle Parts Purchasing Sub-Division and Dr. Mandar V Deo, Managing Director, and CEO of Exide Energy.

Exide Energy, a wholly owned subsidiary of Exide Industries was incorporated in March 2022 to manufacture lithium-ion battery cells, modules, and packs for electric vehicle and stationary storage applications. Last month, Exide Energy invested an additional INR 40 crore in its advanced battery manufacturing arm, Exide Energy through a rights issue to fund its greenfield projects and meet various funding requirements.

"This 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," Hyundai Motor stated in an official release.

The latest agreement is set to position Hyundai Motor and Kia as pioneers in equipping domestically produced batteries in their EV models for the Indian market.