Hyundai Motor Company and Kia Corporation have announced a strategic partnership with Exide Energy Solutions Ltd (Exide Energy) to localize electric vehicle battery development and production in India, marking a significant step into the country's burgeoning battery ecosystem. Under the Memorandum of Understanding inked between the collaborators, forthcoming Hyundai and Kia electric vehicle models destined for the Indian market will feature domestically manufactured LFP (lithium-iron-phosphate) batteries.
"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".
The signing ceremony of the MoU occurred at Hyundai Motor Group's Namyang Research and Development Center in South Korea, graced by the presence of 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, along with Dr. Mandar V Deo, Managing Director, and CEO of Exide Energy.
Incorporated in March 2022 as a wholly owned subsidiary of Exide Industries, Exide Energy focuses on manufacturing lithium-ion battery cells, modules, and packs for electric vehicle and stationary storage purposes. Recently, the company bolstered its advanced battery manufacturing arm by investing an additional INR 40 crore through a rights issue aimed at funding greenfield projects and fulfilling diverse financial needs.
"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", Hyundai Motor stated in an official release. The latest agreement is set to position Hyundai Motor and Kia as pioneers in equipping domestically produced batteries in their EV models for the Indian market.