Hyundai Motor Co, and Kia Corp, on Monday signed an agreement of collaboration with India’s Exide Energy Solutions Ltd to provide batteries for their electric vehicles in a bid to boost rivalry in the world’s No.3 auto market. In a statement, the South Korean automaker stated that its goal is to localize the production of electric vehicle batteries in India, with a particular emphasis on lithium-iron-phosphate (LFP) cells, through its relationship with Exide Energy, a division of Exide Industries Ltd.
Hyundai Motor Co, and Kia Corp Partnership
One of their four largest revenue-generating markets, after the US, South Korea, and Western Europe, is India, where Hyundai and Kia plan to grow. For the Indian market, Hyundai has stated that it intends to invest over 3.25 trillion won ($2.40 billion) over ten years starting in 2023. This includes the introduction of six electric vehicles by 2028 as well as charging stations. According to a statement released on Wednesday, Kia intends to start selling locally optimized small-sized EVs in 2025.
By the year’s end, Exide Energy hopes to produce EV battery cells. India is being targeted by automakers like VinFast and Tesla to establish EV manufacturing plants. “India’s average manufacturing labour cost is estimated to be about one-fourth of labour cost in China, and the country’s massive lithium mines would help automakers that plan to make EVs in the country to better source necessary battery materials,” said Shin Yoon-Chul, a Kiwoom Securities analyst
In contrast to the benchmark KOSPI’s 0.1% increase, shares of Hyundai Motor and Kia Corp closed 3.1% and 3.3% higher, respectively. Exide Industries’ stock increased by up to 15% to reach a record high.
