Hyundai Motor Company and Kia Corporation have signed a Memorandum of Understanding (MoU) for strategic cooperation with Exide Energy Solutions (Exide Energy), a leading Indian battery company, as part of their electric vehicle (EV) expansion plans.
The signing ceremony took place at Hyundai Motor Group’s Namyang Research and Development Center in South Korea, 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.
With the expansion of their EV plans for the Indian market, Hyundai Motor and Kia aim to localize their EV battery production, specifically focusing 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.
“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.”
Kolkata-based Exide Industries, a leading lead-acid battery supplier in India has over 75 years of experience and market leadership in lead-acid batteries. Exide Energy Solutions is a wholly owned subsidiary company of Exide Industries, which was established in 2022 to foray into the business of manufacturing of lithium-Ion cells, modules and packs incorporating a portfolio of multiple chemistries and form factors.
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.
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 electric vehicles. In FY2024, retail sales of EVs in India jump 42% year on year to 1.67 million units, with electric two- and thre-wheelers, cars and SUVs scaling new highs.
ALSO READ:
EV sales in India jump 42% to 1.67 million in FY2024, 2- and 3Ws, cars and SUVs scale new highs
Electric car and SUV sales jump 90% to 90,000 units in FY2024
Electric two-wheeler sales hit highest level in FY2024: 944,000 units
Electric 3-wheeler sales surge 57% in FY2024, hit record levels of 632,500 units