South Korean automakers Hyundai Motor Company (Hyundai Motor) and Kia Corporation (Kia) have inked deal with Indian battery manufacturer Exide Energy Solutions Ltd. (Exide Energy) to produce electric vehicle (EV) battery in India.

The South Korean auto duo said in a statement on Monday that they have signed a memorandum of understanding (MOU) for strategic cooperation as part of their EV expansion plans.

The signing ceremony took place 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 localize their EV battery production, specifically focusing on lithium-iron-phosphate (LFP) cells.

This strategic move will position them as the pioneers in applying domestically produced batteries in their upcoming EV models in the Indian market.

“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,” said Heui Won Yang, President and Head of Hyundai Motor and Kia’s Research and Development Division.

“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,” he added.

It is noted that 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.

Exide Energy Solutions Ltd. is a wholly owned subsidiary company of Exide Industries Ltd., which was established in 2022 to foray into the business of manufacturing of lithium-ion cells, modules and packs incorporating a portfolio of multiple chemistries and form factors.

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

Realizing the strategic importance of the Indian market, Hyundai Motor and Kia said they are taking the lead in the Indian market by introducing its EV models to establish itself as the frontrunner in the Indian automotive industry.

Hyundai Motor Group is a global enterprise that has created a value chain based on mobility, steel and construction, as well as logistics, finance, information technology (IT) and service.

With about 250,000 employees worldwide, the group’s mobility brands include Hyundai, Kia and Genesis.

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