Through the signing of a Memorandum of Understanding (MoU), Hyundai Motor Company and Kia Corporation have formed a strategic relationship with Exide Energy Solutions (Exide Energy), an Indian battery manufacturer. An important step toward their goal of increasing the number of electric vehicles (EVs) they sell is this collaboration. This collaboration was formally established at the Namyang Research and Development Center of the Hyundai Motor Group in South Korea. Notable people attended the ceremony, including Dr. Mandar V. Deo, Managing Director and CEO of Exide Energy, Chang Hwan Kim, Head of Electrification Energy Solutions Tech Unit, Duk Gyo Jeong, Head of Electric Vehicle Parts Purchasing Sub-Division, and Heui Won Yang, President and Head of Hyundai Motor and Kia’s R&D Division.
With a focus on lithium-iron-phosphate (LFP) cells specifically, Hyundai Motor and Kia are localizing their EV battery manufacture for the Indian market. With this approach, they hope to be the first in the Indian market to use locally made batteries in their next electric vehicle models.
India is a vital market for automotive electrification, according to Heui Won Yang, President and Head of Hyundai Motor and Kia’s R&D Division. This is partially because of the government’s carbon neutrality goals. He underlined that attaining cost competitiveness requires localized battery production. According to him, the collaboration with Exide Energy Solutions Ltd. will give Hyundai Motor and Kia a competitive advantage by guaranteeing that their next electric vehicle models in the Indian market will be fitted with locally made batteries.
Exide Industries, a leading force in India’s lead-acid battery sector with more than 75 years of expertise, is headquartered in Kolkata. In 2022, Exide Industries founded Exide Energy Solutions, a wholly-owned subsidiary, to enter the lithium-ion cell, module, and pack manufacturing market. The company will produce a variety of chemistries and form factors.
This strategic alliance between Hyundai Motor and Kia and Exide Energy marks the beginning of the companies’ efforts to expand their exclusive battery development, production, supply, and partnerships in the Indian market.
India is quickly emerging as a major participant in the manufacturing and distribution of electric vehicles, and the country is widely acknowledged on a global basis as a highly promising automotive market. Retail sales of electric vehicles (EVs) in India increased by 42% year over year to 1.67 million units in the fiscal year 2024. Electric cars, SUVs, and two- and three-wheelers all saw record highs in this regard.
