In Short : Hyundai and Kia have partnered with Exide Energy to source India’s first locally made lithium-iron-phosphate (LFP) battery cells for their upcoming EVs. Exide’s Bengaluru plant will supply the cells starting late 2024. This move supports India’s EV localization push and marks a major step for Exide in shifting from lead-acid to advanced lithium battery manufacturing.
In Detail : Hyundai Motor and Kia have signed a strategic agreement with Exide Energy Solutions to procure India’s first locally manufactured lithium-iron-phosphate (LFP) battery cells. These cells will be used in their upcoming electric vehicle models tailored for the Indian market.
The partnership represents a major step toward localizing EV component manufacturing, aligning with India’s ambitions to reduce import dependence and promote clean mobility. Production of the battery cells will begin at Exide’s new facility in Bengaluru by late 2024.
The Bengaluru plant, developed in phases, is expected to eventually reach an annual capacity of up to 12 GWh. The locally made LFP cells will offer high durability, safety, and long life, making them suitable for Indian road and climate conditions.
This collaboration is part of Hyundai Motor Group’s larger investment plan of over $2.4 billion in India over the next decade. The plan includes EV development, battery production, and advanced R&D capabilities to strengthen their market presence.
For Exide, this deal signals a major transition from its legacy lead-acid battery business toward cutting-edge lithium-ion cell production. The partnership positions Exide as a key domestic supplier in India’s growing EV ecosystem.
The announcement boosted investor confidence, with Exide Industries’ stock surging over 12% following the news. The collaboration is expected to drive growth for all parties involved while contributing significantly to India’s electric mobility and carbon reduction goals.A
