Exide Energy Solutions Ltd. has been partnered with Hyundai Motor Company (HMC) and Kia Corporation to localize electric vehicle batteries in India.
In reaction to the news, Exide Industries’ shares increased by more than 12 percent, reaching a 52-week high of Rs 363.
Hyundai, Kia, and Exide Energy Sign MoU
Hyundai Motor Group and Exide Energy Solutions Ltd., a well-known battery manufacturer in India, inked a Memorandum of Understanding (MOU), where it stated, “HMC and group firm Kia Corporation have signed a Memorandum of Understanding (MOU) with Exide Energy Solutions Ltd, a leading Indian battery company, as part of their electric vehicle (EV) expansion plans.”
With over 75 years of lead-acid battery experience, Exide Energy Solutions (EES) is a fully-owned subsidiary of Kolkata-based Exide Industries Ltd. Kia and Hyundai Motor want to bring their EV battery manufacturing in-house, with an emphasis on lithium-iron-phosphate (LFP) cells for the Indian market.
Through their collaboration, Hyundai Motor and Kia will be able to lead the way in utilizing locally made batteries in their next generation of electric vehicles in India, leading to potential discount in the overall price.
Indian Government’s Carbon Neutrality Objectives Align With Kia’s Long Term Goals
Because of India’s government’s carbon neutrality objectives, achieving cost competitiveness through locally produced batteries is essential. India is an essential market for car electrification, according to Heui Won Yang, President and Head of Hyundai Motor and Kia’s R&D Division.
As per Yang, “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 localised battery production crucial.”
Hyundai Motor and Kia will have a competitive edge thanks to their relationship with Exide Energy Solutions Ltd. when it comes to the local production of batteries for their upcoming electric vehicle models in India.
Hyundai Motor India, which presently sells the IONIQ5 and Kona in the EV market, intends to introduce its high-volume EV model in 2025.
In addition to selling the EV6 model, Kia India is a partner in the localization of electric vehicle batteries in India.
