Hyundai and Kia have signed a memorandum of understanding with India’s Exide Energy Solutions Ltd to secure battery supply for their electric vehicles and enhance their competitiveness in the Indian market.
The South Korean automotive duo emphasized that the partnership with Exide Energy aims to localize EV battery production in India, focusing specifically on lithium iron phosphate (LFP) cells.
Expansion into India is strategically important for Hyundai and Kia. Besides the USA, South Korea, and Western Europe, India is one of the company’s most revenue-generating markets. Lower labor costs in India compared to China and the availability of lithium mines in the country make it an attractive destination for manufacturing EV battery materials, emphasized Shin Yoon-chul, analyst at Kiwoom Securities.
Hyundai plans to invest around $2.40 billion in the Indian market by 2023. This includes introducing six electric car models by 2028 and expanding charging stations. Meanwhile, Kia plans to introduce locally optimized small electric cars to the market starting in 2025.
Exide Energy has already announced that production of EV battery cells will commence by the end of this year, marking a significant step forward for electromobility in India.
Source: https://www.reuters.com/business/autos-transportation/hyundai-motor-kia-partner-with-indias-exide-energy-ev-batteries-2024-04-08/
