Hyundai Motor Company and Kia Corporation have found a partner to help them in their electric car transition: Exide Energy Solutions (Exide Energy). The two companies entered into a Memorandum of Understanding (MoU) with that battery manufacturing mammoth in India as part of their strategic collaboration to expand electric vehicle (EV) production.
What is it about?
The MoU signing event was held at Hyundai Motor Group's Namyan/g Research and Development Center in South Korea. Critical personnel from Hyundai, Kia, and Exide Energy were in attendance, and this included Heui Won Yang, president and head of Hyundai Motor and Kia's R&D Division; Chang Hwan Kim, head of Electrification Energy Solutions Tech Unit; Duk Gyo Jeong, head of Electric Vehicle Parts Purchasing Sub-Division and Dr Mandar V Deo, managing director, and CEO of Exide Energy. This collaboration focuses on localizing the production of EV batteries, particularly lithium-iron-phosphate (LFP) cells. This move aims to establish Hyundai and Kia as leaders in utilizing domestically manufactured batteries for their upcoming EV models in the Indian market.
Why this move?
Heui Won Yang, the president and head of Hyundai and Kia's R&D Division, mentioned India's importance in vehicle electrification with respect to the government's carbon neutrality goals. He said making the batteries cost-effective through localized production was crucial. He believes that Hyundai and Kia will gain a competitive advantage by using locally produced batteries.
What Lies Ahead?
This collaboration with Exide Energy represents the first step in Hyundai and Kia's plans to enhance their battery development, production, and supply chain in the Indian market. India is increasingly recognized as a promising automotive market globally, particularly in the realm of electric vehicles. EV retail sales in India have been on the rise, with a significant increase of 42 per cent year-on-year, with electric two-wheelers, three-wheelers, cars, and SUVs witnessing the fastest growth.
