Hyundai Motor Company and Kia Corporation have signed an agreement with Exide Energy Solutions Ltd, an Indian battery company, to localise electric vehicle batteries in India.

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

The agreement was signed at Hyundai Motor Group’s Namyang Research and Development Center in South Korea.

With the expansion of their EV plans for the Indian market, Hyundai Motor and Kia aim to localise their EV battery production, specifically focusing on lithium-iron-phosphate (LFP) cells.

“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 Yang, President and Head of Hyundai Motor and Kia’s R&D Division.

Kolkata-based Exide Industries Ltd., a leading lead-acid battery supplier in India has over 75 years of experience and market leadership in lead-acid batteries. Established in 2022, Exide Energy Solutions Ltd, a wholly-owned subsidiary of Exide Industries, focuses on the manufacture of Lithium-Ion cells, modules, and packs incorporating a portfolio of multiple chemistries and form factors.

India is recognized as a highly promising automotive market worldwide and is rapidly emerging as a critical player in the production and sales of EVs, it said.

Hyundai Motor and Kia plan to introduce more EV models to the Indian market. Hyundai presently sells two electric vehicles – the Kona Electric and the Ioniq 5, and it sold close to 2,000 units in 2023, while Kia sold about 500 electric cars.

Hyundai indicated that it would introduce five EV models in India by 2032 and expand the number of EV charging stations to more than 430 by 2027 by leveraging the strength of the company’s sales network.

Hyundai has committed to investing more than ₹26,000 crore in India to augment its electric vehicle manufacturing, charging infrastructure, R&D, and skill development, among other things.