SEOUL, April 8, 2024 – Hyundai Motor Company (Hyundai Motor) and Kia Corporation (Kia) signed a Memorandum of Understanding (MOU) for strategic cooperation with Exide Energy Solutions Ltd. (Exide Energy), a subsidiary of Exide Industries. Exide Energy is an Indian battery company that manufactures Lithium-iron-phosphate (LFP) batteries for electric vehicles and other applications. Exide will collaborate in the development, production, and supply of Lithium Iron Phosphate (LFP) cells, crucial for Hyundai and Kia’s EVs manufactured in India. As part of the partnership, Exide is establishing a multi-giga lithium-ion battery manufacturing facility in India to meet the burgeoning demand. This strategic alliance aims to localize EV battery production, enhancing efficiency and cost-effectiveness for Hyundai and Kia’s electric vehicles in India. Other Lithium Ion battery manufacturers in India Tata Power, Amara Raja Batteries, Servotech Power Systems, Waaree ESS, and Luminous Power Technologies.
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. “We will gain a competitive advantage by equipping Hyundai Motor and Kia’s future EV models in the Indian market with locally produced batteries. This will be achieved through a global partnership with Exide Energy Solutions Ltd.”
Kolkata-based Exide Industries Ltd., a lead-acid battery supplier in India has over 75 years of experience and market leadership in lead-acid batteries. Moreover, Exide Industries Ltd. wholly owns Exide Energy Solutions Ltd., its subsidiary company. In 2022, the company established its presence in the business of manufacturing 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.
The world recognizes India as a highly promising automotive market. The country is rapidly emerging as a critical player in the production and sales of EVs. Hyundai Motor and Kia are taking the lead in the Indian market, realizing the strategic importance of the Indian market. They are introducing their EV models to establish themselves as the frontrunner in the Indian automotive industry.
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