Hyundai Motor Company and Kia Corporation have announced a strategic collaboration with Exide Energy Solutions, aiming to boost their electric vehicle (EV) initiatives in India through local battery production. This move is marked by the signing of a Memorandum of Understanding (MoU) at Hyundai Motor Group’s Namyang Research and Development Center in South Korea.
Strategic Collaboration for Localized Production
As the demand for electric vehicles continues to rise, driven by global carbon neutrality goals, Hyundai and Kia are intensifying their efforts to localize production of lithium-iron-phosphate (LFP) battery cells in India. Heui Won Yang, President and Head of R&D Division at Hyundai and Kia, emphasized the significance of this partnership. “India is a key market for vehicle electrification due to the government’s carbon neutrality goals, which makes securing cost competitiveness through localized battery production crucial,” Yang stated.
Exide Energy Solutions’ Role
Kolkata-based Exide Industries, with over 75 years of experience in lead-acid batteries, has established Exide Energy Solutions as a wholly owned subsidiary in 2022 to delve into the lithium-ion cell, module, and pack manufacturing business. This new venture encompasses a diverse portfolio of chemistries and form factors, positioning it as a pivotal player in India’s burgeoning EV market.
Benefits of the Partnership
This collaboration is set to provide Hyundai and Kia with a competitive edge in the Indian market, enabling both carmakers to equip their future EV models with locally produced batteries. This aligns with the broader strategy of reducing import dependency and enhancing the affordability of EVs in the region.
Current and Future Offerings
Hyundai and Kia are not newcomers to the Indian EV market. Hyundai currently offers the Kona Electric and the Ioniq 5, whereas Kia has introduced the EV6. This partnership promises to expand their offerings and possibly introduce more cost-effective models, thanks to the localized production capabilities.
This strategic alliance marks a significant step for Hyundai and Kia in their commitment to expanding their EV footprint in India, promising a future where more consumers can access sustainable and innovative transportation solutions.
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