Exide shares zoom 12% after Hyundai, Kia join hands with arm for EV battery localisation

Exide shares zoom 12% after Hyundai, Kia join hands with arm for EV battery localisation

South Korean auto majors Hyundai Motor Company (HMC) and Kia Corporation on April 8 announced a partnership with homegrown battery maker Exide Energy Solutions Ltd for electric vehicle battery localisation in India.

Shares of Exide Industries reacted positively to the development and surged more than 12 percent to hit a 52-week high of Rs 363.  Volumes in the counter also surged as one crore shares changed hands on the exchanges so far, significantly higher than the one-month daily traded average of 22 lakh shares.

"HMC and group firm Kia Corporation have signed a Memorandum of Understanding (MOU) with Exide Energy Solutions Ltd, a leading Indian battery company, as part of their electric vehicle (EV) expansion plans," Hyundai Motor Group said in a statement.

Exide Energy Solutions (EES) is a wholly-owned subsidiary of Kolkata-based Exide Industries Ltd, a leading lead-acid battery supplier in India with over 75 years of experience and market leadership in lead-acid batteries.

Hyundai Motor and Kia aim to localise their EV battery production, specifically focusing on lithium-iron-phosphate (LFP) cells in line with the expansion of their EV plans for the Indian market, the statement added.

"This strategic move will position them as the pioneers in applying domestically produced batteries in their upcoming EV models in the Indian market," the statement said.

Also Read | Exide Industries invests Rs 100 crore in subsidiary

"India is a key market for vehicle electrification due in part to the government's carbon neutrality goals, which makes securing cost competitiveness through localised battery production crucial," said Heui Won Yang, President and Head of Hyundai Motor and Kia's R&D Division.

"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 added.

Hyundai Motor Group said this strategic cooperation with Exide Energy is the beginning of HMC and Kia's efforts to expand their exclusive battery development, production, supply and partnerships in the Indian market.

Hyundai Motor India has already announced that it plans to launch its high-volume EV model in 2025. The company currently sells IONIQ5 and Kona in the EV segment. On the other hand Kia India sells the EV6 model.

On April 8 at 12.09 pm, Exide Industries was trading at Rs 360.95 apiece on the NSE.

With PTI inputs