Hyundai and Kia partner with Exide Energy

To increase competition in one of the largest car markets in the world, Hyundai and Kia are entering into a joint venture with the Indian company Exide Energy, which is part of the Exide Industries Ltd group and focuses on the production of electric batteries. cars in India. According to a Reuters news service report, the target is lithium iron phosphate (LFP) cells.

In the next ten years from 2023, Hyundai wants to invest the same amount of 2.24 billion euros in the Indian market, according to Reuters. Six electric models will be introduced by 2028 and charging stations should be installed. Kia, for its part, plans to launch small, improved electric vehicles for domestic sales from 2025, while Exide Energy plans to release battery cells for electric vehicles later this year.

The partnership between the companies led to an increase in the stock market value of all three. Shares of Hyundai Motor and Kia Corp closed 3.1 percent and 3.3 percent higher, respectively, while shares of Exide Industries hit a record high of 15 percent.

Electric vehicle market in India

For South Korean car brands, expansion into India means further development in one of the four most important sales markets worldwide, along with the US, South Korea and Western Europe. Some manufacturers have already set their sights on the Indian market and building electric vehicle production facilities there, for example the American car manufacturer Tesla and the Vietnamese company VinFast.

This is due to the low cost of production:

“Average labor costs in India are estimated to be a quarter of those in China and the country’s large lithium mines would help automakers planning to manufacture EVs in the country get the quality battery materials they need.” – Shin Yoon-chul, analyst at Kiwoom Securities

What: Reuters – Hyundai Motor, Kia to partner with India’s Exide Energy on EV batteries