Hyundai & Kia to locally produce batteries in India

Credit: Hyundai

Hyundai Motor Company and the Kia Corporation plan to produce electric vehicle (EV) batteries in India. The South Korean automakers recently signed a Memorandum of Understanding (MOU) with Exide Energy Solutions Ltd. to collaborate strategically in India’s EV market. 

Hyundai Motor is Kia’s parent company. The company has EV expansion plans for India, starting with the leading Indian battery company, Exide Energy. Through their partnership, Hyundai and Kia plan to localize LFP (lithium-iron-phosphate) cell production for electric vehicles. The companies will use the LFP batteries in their upcoming EV models launching in the Indian car market. 

Exide Industries has 75 years of experience as a market leader in lead-acid batteries. In 2022, the company established its wholly-owned subsidiary, Exide Energy Solutions Ltd. The subsidiary focuses on lithium-ion cells, modules, and pack production. Exide Energy has a portfolio offering multiple battery chemistries and form factors. 

“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. 

“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,” said Heui Won Yan, the President and Head of the R&D Division at Hyundai Motor and Kia. 

Elon Musk also thinks India is a key market for electric vehicles. In a recent X Spaces session with Nicolai Tangen, the Tesla CEO noted that the company’s presence in India was a “natural progression” given its population. 

Earlier this month, Tesla Giga Berlin reportedly started producing right-hand-drive (RHD) cars for India. Giga Berlin produces the Model Y, hinting that the all-electric crossover will be the first Tesla vehicle to hit India. Following the rumors of Tesla’s impending foray into India, Panasonic Energy shared that it discussed EV battery production in the country with Indian Oil

Last month, the Indian government updated its policy on electric vehicles. The new EV import policy encourages companies to make a minimum investment of at least $500 million in India. It also motivates foreign EV makers to locally produce electric vehicles within the next three years.

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Maria Merano: Veteran writer and editor, who believes harmony between tech and nature is achievable. We just need to learn to compromise.
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