Posted on 10 Apr 2024
Hyundai Motor Company and Kia Corporation have partnered with Indian battery firm Exide Energy Solutions to localise their EV battery production in India.
The three companies signed an MOU at Hyundai Motor Group’s Namyang Research and Development Center in South Korea. Coming as part of the South Korean companies’ EV expansion plans in the Indian market, the deal will see Exide supply Hyundai and Kia with EV batteries, with a focus on lithium-iron-phosphate (LFP) cells.
“This strategic move will position them as the pioneers in applying domestically produced batteries in their upcoming EV models in the Indian market,” Hyundai Motor Group sas in a statement seen by Kallanish.
The companies did not reveal further details of the partnership such as volume and when first deliveries are expected. Last year, the Hyundai Motor Group announced it would invest to expand its local car production in India to include EV and hybrid models. It also said it would build a battery assembly plant, which may now have LFP cells supplied by Exide.
Exide Energy is a subsidiary of Kolkata-based Exide Industries, a key lead-acid battery supplier in the South Asian country. The subsidiary was established in 2022 to market lithium-ion cells, modules and packs incorporating a range of battery chemistries and form factors.
“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,” explains Heui Won Yang, president and head of Hyundai Motor and Kia’s R&D division. “Through this global partnership with Exide Energy Solutions, we will gain a competitive advantage by equipping Hyundai Motor and Kia’s future EV models in the Indian market with locally produced batteries.”
India is the world’s third-largest auto market, only behind the US and China. Hyundai Motor India currently sells its IONIQ 5 and Kona battery electric vehicles in the country but has plans to introduce five new models by 2032. Kia, meanwhile, said last year it plans to introduce three new models in the country by 2025.
The companies are yet to reply to Kallanish’s request for comment.
Source:Kallanish
