Hyundai Motor Company (HMC) and Kia Corporation have announced a partnership with Exide Energy Solutions Ltd, a leading Indian battery manufacturer, for the localization of electric vehicle (EV) batteries in India. Following this announcement, shares of Exide Industries surged by over 5 percent.
Under this Memorandum of Understanding (MOU), Hyundai Motor and Kia aim to localize their EV battery production, with a specific focus on lithium-iron-phosphate (LFP) cells, aligning with their expansion plans for the Indian EV market. Exide Energy Solutions (EES), a subsidiary of Exide Industries Ltd, brings over 75 years of experience and market leadership in lead-acid batteries to this collaboration.
According to Heui Won Yang, President and Head of Hyundai Motor and Kia’s R&D Division, this strategic move positions them as pioneers in incorporating domestically produced batteries into their upcoming EV models in the Indian market. He emphasized the importance of India’s EV market, driven by the government’s carbon neutrality goals, and highlighted the significance of localized battery production for cost competitiveness.
The partnership signifies the beginning of Hyundai Motor and Kia’s efforts to expand their battery development, production, supply, and partnerships exclusively in the Indian market. Hyundai Motor India has already announced plans to launch a high-volume EV model by 2025, while Kia India offers the EV6 model.
As of April 8, Exide Industries saw a positive trading session, with its stock trading over 5 percent higher at Rs 338.90 apiece.
