Hyundai Motor and Kia have officially partnered with India’s Exide Energy Solutions Ltd, signing a memorandum of understanding to secure batteries for their electric vehicles (EVs).
The collaboration aims to enhance their competitive edge in India, the world’s third-largest auto market. The alliance with Exide Energy, a subsidiary of Exide Industries, is focused on localizing EV battery production within India, particularly emphasising lithium-iron-phosphate (LFP) cells.
Hyundai and Kia consider India among their top four revenue sources, alongside the United States, South Korea, and Western Europe. Hyundai’s commitment to the Indian market is evidenced by its investment plan of approximately 3.25 trillion won ($2.40 billion) over the next decade.
The strategy includes introducing six EV models by 2028 and establishing a charging infrastructure. Kia’s approach involves launching small-sized EVs tailored for the Indian market starting in 2025.
Exide Energy has set a goal to commence the production of EV battery cells by the end of the current year, aligning with the increasing interest from global automakers, like Tesla and VinFast, in establishing EV production capabilities in India.
The country’s low manufacturing labour costs, roughly a quarter of those in China, coupled with its significant lithium reserves, present an attractive proposition for companies looking to enhance their EV sourcing strategies, as analyst Shin Yoon-Chul from Kiwoom Securities noted.
The announcement led to a surge in the stock prices of Hyundai Motor and Kia, closing 3.1% and 3.3% higher, respectively, outperforming the KOSPI’s modest 0.1% increase. Meanwhile, Exide Industries’ shares soared to 15%, reaching a new all-time high.
 battery production with a focus on lithium-iron-phosphate (LFP) cells, marking a strategic move in the world's third-largest auto market.){kind=link}