Hyundai Motor Company and the Kia Corporation have announced their plans to produce electric vehicle (EV) batteries in India, in a strategic collaboration aimed at the country’s growing EV market. Hyundai Motor is the parent company of Kia, and together they aim to localize the production of LFP (lithium-iron-phosphate) cells for use in their upcoming EV models for the Indian market.
In a notable development, Exide Industries, a leader in lead-acid batteries with 75 years of experience, established a wholly-owned subsidiary, Exide Energy Solutions Ltd, in 2022. This subsidiary focuses on the production of lithium-ion cells, modules, and packs, offering a portfolio encompassing multiple battery chemistries and form factors.
Recognizing the significance of India’s market in the context of global carbon neutrality goals, Hyundai and Kia have emphasized the importance of securing cost competitiveness through localized battery production. Heui Won Yan, President and Head of the R&D Division at Hyundai Motor and Kia, reaffirmed the value of their global partnership with Exide Energy Solutions Ltd in this endeavor, expressing their intention to equip their future EV models in India with locally produced batteries.
Elon Musk, the CEO of Tesla, also views India as a pivotal market for electric vehicles. The production of the Model Y at Giga Berlin suggests that this all-electric crossover could be the first Tesla vehicle to enter the Indian market.
Notably, India’s new EV import policy encourages companies to make a minimum investment of at least $500 million in the country, reflecting the government’s commitment to fostering a conducive environment for electric vehicle adoption.