Hyundai Motor firm and Kia Corporation have signed a Memorandum of Understanding (MoU) for strategic cooperation with Exide Energy Solutions (Exide Energy), a prominent Indian battery firm.
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, attended the signing ceremony at Hyundai Motor Group’s Namyang Research and Development Centre in South Korea.
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.
Heui Won Yang, President and Head of Hyundai Motor and Kia’s R&D Division, said, “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 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 three-wheelers, cars and SUVs scaling new highs.