Hyundai-Kia Set To Localise EV Battery Production, Partner With Exide Energy

The production of EV batteries at home can bring down their input costs, making electric vehicles more affordable

• Local production of EV batteries will focus on lithium-iron-phosphate (LFP) batteries.

• This partnership will help both Hyundai and Kia to make their upcoming EVs more affordable.

• Both carmakers are planning to bring more EVs like the Hyundai Creta EV and Kia EV9.

Hyundai and Kia are preparing to enter the affordable mass-market EV space in the country, with models priced below Rs 20 lakh (ex-showroom). For the same purpose, the Korean carmakers have signed a memorandum of understanding (MoU) with Exide Energy Solutions, a battery manufacturer in India, to localise the production of EV battery packs.

While India-centric, this is a global partnership. The MoU was signed in South Korea where Heui Won Yang, president and head, Hyundai Motor and Kia’s RD Division, Chang Hwan Kim, head, electrification energy solutions, Duk Gyo Jeong, head, electric vehicle parts purchasing sub-division, and Mandar V Deo, managing director and CEO, Exide Energy, were present.

Also Read: Watch: 5 Reasons Why The Kia EV9 Electric SUV Will Cost Nearly Rs 1 Crore

With this partnership, Hyundai and Kia will be able to locally produce electric vehicle batteries with a focus on lithium-iron-phosphate (LFP) batteries for their future electric vehicles. As of now, these two brands have a total of 3 EVs in India namely Hyundai Kona, Hyundai IONIQ 5, and Kia EV6. For now, both are planning to bring more international EVs to the country, like the Kia EV9 full-size electric SUV.

With the localisation of EV batteries, both Hyundai and Kia will be able to make battery packs for their upcoming products at a much more affordable price, which will in turn reduce the price of its future products. We’re expecting localised electric cars like a Hyundai Creta EV, and maybe an all-electric Kia Carens MPV as well, by 2026. Which upcoming Hyundai-Kia EV are you excited about? Let us know in the comments.