Hyundai, Kia signed MOU with Exide Energy for EV Battery

Hyundai and Kia partnered with Exide Energy Solutions for EV battery localisation in India. This move will reduce the battery pack cost and help Hyundai and Kia to launch new EV cars in India at a lower cost.

The signing ceremony took place at Hyundai Motor Group’s Namyang Research and Development Center in South Korea, attended by 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.

As the news of the Hyundai and Kia partnership with Exide Energy circulated in the market, the stock of Exide Industries Ltd jumped by 16%. Earlier, the stock price was hovering around Rs. 322-323, but with this news, the price jumped to Rs. 375-382.

This is pretty good news, not only for the investors, but also for the customers who have been waiting for affordable electric car options in the market. With this partnership, Hyundai and Kia aim to localize their EV battery production and will now focus on launching upcoming EV cars at low cost, and this will also lower the battery import ratio.

In addition to that both companies aim localize the expansion of their EV plans for the Indian market. Since currently EV car manufacturers import batteries from other countries like China, South Korea and Japan, the current partnership of Kia and Hyundai motors with Exide will help reduce the dependency and thereby reduce the price of battery packs to a great extent. Once production of lithium-iron-phosphate cells starts within India, the overall cost of the electric cars will also reduce due to lower battery costs.

Last, this collaboration marks a significant development in the electric vehicle sector in the country. As the Indian government works to improve EV infrastructure,  this partnership not only enhances Exide Industries’ market presence but also underlines its important role in meeting the growing demand for electric vehicle components in India.

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