Hyundai, Kia Partner with Exide for EV Battery Localization in India

8 Apr 2024 , 01:18 PM

Hyundai Motor Company (HMC) and Kia Corporation announced a partnership with Exide Energy Solutions Ltd for EV battery localization in India on April 8.

Exide Industries’ shares surged over 12%, hitting a 52-week high of ₹363 in response to the news. Trading volume soared with one crore shares exchanged, significantly surpassing the one-month daily average of 22 lakh shares.

As part of their EV expansion plans, HMC and Kia signed a Memorandum of Understanding (MOU) with Exide Energy Solutions Ltd, a leading Indian battery company, according to Hyundai Motor Group.

Exide Energy Solutions (EES), a wholly-owned subsidiary of Exide Industries Ltd, possesses over 75 years of experience and market leadership in lead-acid batteries in India.

Hyundai Motor and Kia aim to localize EV battery production, focusing on lithium-iron-phosphate (LFP) cells to align with their EV plans for the Indian market.

This strategic move positions them as pioneers in applying domestically produced batteries in their upcoming EV models in India, according to the statement.

Heui Won Yang, President and Head of Hyundai Motor and Kia’s R&D Division, emphasized the significance of India’s EV market and the government’s carbon neutrality goals in driving the need for cost-competitive localized battery production.

Hyundai Motor Group views the partnership with Exide Energy as the initial step in expanding exclusive battery development, production, supply, and partnerships in the Indian market.

Hyundai Motor India plans to launch its high-volume EV model in 2025, having already introduced IONIQ5 and Kona in the EV segment, while Kia India sells the EV6 model. At the time of writing on April 8, Exide Industries’ stock was trading at ₹370.10 apiece on the NSE.

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