Hyundai and Kia strengthening their ties in India by signing a memorandum of understanding with Exide Energy Solutions to supply batteries for their electric vehicles. This move aims to localize EV battery production, focusing on lithium-iron-phosphate cells (LFP) due to their cost-effectiveness, longer lifespan, and lower risk of bursting into flames compared to lithium-ion batteries.
Despite LFP batteries having about 30% less energy than lithium-nickel-cobalt-aluminum-oxide batteries, the partnership with Exide Energy Solutions will position Hyundai and Kia as pioneers in using domestically produced batteries in India.
This strategic decision aligns with India’s goals for vehicle electrification and carbon neutrality, making localized battery production crucial for cost competitiveness.
Additionally, Hyundai Motor Group plans significant investments in South Korea and India to boost EV production and expand its mobility business, with Kia set to launch three EVs in the Indian market, including the Carens compact EV and the EV9 SUV. Hyundai aims to introduce five EV models in India by 2032.
