Hyundai and Kia join forces with Exide Energy

In the latest in a series of big moves by global motoring giants moving further toward carbon neutrality, Hyundai Motor Company and Kia Corporation have recently announced the signing of an MoU (Memorandum of Understanding) with Exide Energy. 

Exide, an Indian battery company, is helping both firms focus on localizing their EV battery production, particularly with lithium-iron-phosphate (LFP) cells in mind. But why Exide Energy? 

The answer lies somewhat in global positioning. India has made its impressive carbon neutrality goals very clear, meaning it's set to become a major market presence regarding EV sales. By focusing on creating the batteries within India, Hyundai and Kia appear to be getting something of a jump on that upcoming market increase.

Exide Energy is also a well-trusted lead-acid battery manufacturer and supplier in the country, boasting more than 75 years of experience in the industry. That kind of experience certainly leads to big partnerships, as this latest news proves!

Lithium-iron-phosphate cells, or LFP batteries, are becoming increasingly popular with motoring firms operating in the EV industry. That's largely thanks to the cells' relative safety and value for money from manufacture to shipping.

An official signing ceremony took place recently at Hyundai’s Namyang Research and Development Center, based over in South Korea. Some of the biggest names and leading directors in Hyundai and Exide were on hand to cement the deal, making it official.

Although this will be a cross-continent partnership, Kia and Hyundai both expect to fully market their upcoming vehicles’ batteries with the words “Made in India,” thereby supporting the nation and its government’s goal for complete carbon neutrality. A bold step in the right direction – and these are certainly two big-name partners they’ll want to keep on side.

Of course, this latest partnership certainly bears serious benefits for Kia and Hyundai, aside from their new role in the Indian car market. Both companies will also fully benefit from reduced costs and serious supply chain advantages. So, not only will they lead the market, but they expect to do so at a lower cost and a potentially higher rate of return. That, of course, will remain to be seen!

Experts already believe this partnership will also have worldwide effects. By helping to reduce India’s carbon footprint, the knock-on effect for our global environment will be colossal. What’s more, the likes of Kia and Hyundai are well-positioned to help make EV an even bigger presence in the public sphere.

That being said, only time will tell if this was a smart move from Kia and Hyundai or whether the attempt to make headway in an established market was too bold a move. It’s too early to say – but both companies and Exide have the quality assurance and clout to help India reach its carbon neutrality goals.

Will you be investing in an EV produced by Kia or Hyundai? Keep your eye out for the latest news, and we'll share developments with you as soon as they arise.