Hyundai, Kia tie up with Exide for made-in-India EV batteries

South Korean auto makers Hyundai Motor Co. and Kia Corp. have tied up with Exide Energy Solutions Ltd to manufacture batteries for their range of electric vehicles (EVs) in the country.

The deal, which seeks to “expand exclusive battery development, production, supply and partnerships in the Indian market”, was signed at Hyundai Motor Group’s Namyang research and development (R&D) center in South Korea.

Hyundai and Kia aim to localize their EV battery production, specifically focusing on lithium-iron-phosphate (LFP) cells, the companies said in a statement, adding that the deal will position them “as the pioneers in applying domestically produced batteries in their upcoming EV models in the Indian market.”

Exide Energy Solutions, a wholly owned subsidiary of Kolkata-based leading lead-acid battery supplier Exide Industries Ltd, was set up in 2022 to manufacture lithium-ion cells, modules and packs incorporating a portfolio of multiple chemistries and form factors.

Shares of Exide Industries surged close to 12% on Monday from the previous session’s close on BSE against a 0.7% rise in the benchmark Sensex index.

“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 Hyundai Motor and Kia R&D unit head and president Heui Won Yang.

“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,” he added.

India is rapidly emerging as a critical player in the production and sales of EVs, and realizing potential growth, Hyundai and Kia are taking the lead to roll out EV models, the companies said.

Exide Energy chief executive officer and managing director Mandar V. Deo; electrification energy solutions tech unit head Chang Hwan Kim; and EV parts purchasing sub-division head Duk Gyo Jeong were present at the signing ceremony.

During its investor day meeting in Seoul last week, Kia unveiled plans to become a leading EV brand by selling a higher percentage of electrified models among its total sales, including hybrid electric vehicles, plug-in hybrid, and battery EVs, projecting electrified model sales of 2.48 million units annually, or 58% of total sales, by 2030.

Kia plans to launch six EV models by 2026, beginning with EV3 this year, followed by EV2, EV4, and EV5 in the US, Europe, and South Korea.

In India, where it plans to roll out the flagship EV9 later this year, Kia said it is also looking at launching its Clavis EV and Carens EV (KY-EV) next year.