May 02, 2024

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(Getty Images)

Hyundai Motor Group said Monday it formed a strategic partnership with Exide Energy Solutions Ltd. of India to cooperate in battery cell production for the auto group's electric vehicle (EV) models for the Indian market.

Under the memorandum of understanding for the partnership, the two sides will cooperate in the development and production of dedicated battery cells for Hyundai Motor and Kia EV models for the Indian market and expand their ties in areas of general electrification.

Established in 2022, Exide Energy is a dedicated EV battery subsidiary of Exide Industries Ltd., India's leading battery company. It is expected to start mass production of Hyundai and Kia EV battery cells as early as the end of 2024.

India has recently been actively pursuing EV-related policies, including providing incentives to companies starting EV production in the country. It has also announced a plan to expand the share of EV sales to 30 percent of total automobile sales by 2030.

Through the partnership, Hyundai Motor Group seeks to secure price competitiveness in the cost-sensitive Indian market by localizing the production of batteries, which constitute a significant portion of EV costs.

"Through this global partnership with Exide Energy Solutions Ltd., we will gain a competitive advantage by equipping Hyundai Motor and Kia's future EV models in the Indian market with locally produced batteries," Yang Heui-won, president and head of Hyundai Motor and Kia's research division, said. (Yonhap)