South Korean automotive majors Hyundai Motor Company and Kia Corporation announced a partnership with Exide Energy Solutions (EESL) to localise electric vehicle (EV) battery production in India.

As part of their EV initiatives for the Indian market, Hyundai and Kia plan to focus on the production of lithium iron phosphate cells. This strategic alliance will position them as the frontrunners in integrating domestically produced batteries into their future EV models for the Indian market, Hyundai said in a statement from Seoul.

“India is a key market for vehicle electrification, particularly due 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 research and development division.

“Through this global partnership, 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 said.