Korean carmakers Hyundai and Kia have partnered with India-based Exide Energy Solutions to localise electric vehicle battery production, with a focus on lithium-iron-phosphate (LFP) cells. The three parties have inked a Memorandum of Understanding (MoU) at Hyundai Motor Group's Namyang Research and Development Center in South Korea to foster EV growth. Hyundai currently offers the Kona Electric and Ioniq 5, while Kia sells the EV6 in India. All of these vehicles feature nickel-manganese-cobalt (NMC) batteries. The new partnership will allow the South Korean twins to employ lithium-ferrophosphate (LFP) batteries manufactured in India in their future electric cars.
Heui Won Yang, President and Head of Hyundai Motor and Kia’s R&D Division, shared his thoughts on the partnership and said, 'India is a key market for vehicle electrification due in part to the government’s carbon neutrality goals, which makes securing cost competitiveness through localized battery production crucial.'
He further added, '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.'
Demand for LFP batteries has increased significantly over the years in terms of backup power, vehicles, and utility-scale stationary applications. These batteries have several advantages over their counterparts, including low cost, high safety, minimal toxicity, and longer cycle life. As of September 2022, the market share of LFP-type batteries for EVs stood at 31%, with Chinese EV manufacturers BYD and Tesla making up 68% of the total. Since there is an increasing need for more affordable EV batteries, LFP batteries are expected to overtake lithium nickel manganese cobalt oxides (NMC) batteries in the upcoming years.
New Kia Carens EV To Enter India Next Year
The Korean manufacturer Kia unveiled its strategy plan for India at Investor Day 2024, stressing the necessity of catering to the unique demands of Indian customers. Kia President and CEO Ho-Sung Song stated that the company will introduce two new mass-market electric cars in the next 18 months. One of these new vehicles will likely be the electrified Carens MPV. Additionally, Kia plans to introduce the EV9 in India this year to increase the variety of EVs in its line-up.
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