Hyundai and Kia Partner with Exide for EV Battery Supply

Hyundai Motor and Kia have inked a deal with India's Exide Energy Solutions Ltd to supply batteries for their electric vehicles, aiming to enhance their competitiveness in India's thriving auto market. The partnership with Exide Energy, a unit of Exide Industries, is geared towards localizing EV battery production in India, with a specific focus on lithium-iron-phosphate (LFP) cells. This move comes as Hyundai and Kia plan to expand their presence in India, which is among their top revenue-generating markets alongside the US, South Korea, and Western Europe.

Hyundai has announced a substantial investment of about 3.25 trillion won ($2.40 billion) over the next decade, starting from 2023, to bolster its position in the Indian market. This investment will include the launch of six EV models by 2028, along with the development of charging stations. On the other hand, Kia is gearing up to introduce locally optimized small-sized EVs starting in 2025, as per the latest statement.

Exide Energy is on track to commence the production of EV battery cells by the end of this year, aligning with the growing trend of automakers eyeing India as a strategic hub for EV production. With India offering lower manufacturing labor costs compared to China and abundant lithium resources, analysts believe it presents a lucrative opportunity for automakers venturing into the EV segment.

Notably, shares of Hyundai Motor and Kia surged by 3.1% and 3.3%, respectively, following the announcement, outperforming the benchmark KOSPI index. Meanwhile, Exide Industries witnessed a remarkable uptick of up to 15%, reaching a record high in response to the news.