Hyundai Motor Company and Kia Corporation have signed a Memorandum of Understanding (MoU) for strategic cooperation with Exide Energy Solutions (Exide Energy), a leading Indian battery company, as part of their electric vehicle (EV) expansion plans.

1. Hyundai, Kia aim to localise EV battery production
2. Specifically focus on lithium-iron-phosphate (LFP) cells

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 and Kia aim to localise their EV battery production, specifically focusing on lithium-iron-phosphate (LFP) cells. This strategic move is said to position them as 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 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.”

This strategic cooperation with Exide Energy marks the beginning of Hyundai and Kia’s efforts to expand its exclusive battery development, production, supply and partnerships in the Indian market.

India is recognized as a highly promising automotive market worldwide and the country is rapidly emerging as a critical player in the production and sales of electric vehicles. In FY2024, retail sales of EVs in India jumped 42 percent year-on-year to 1.67 million units, with electric two- and thre-wheelers, cars and SUVs scaling new highs.