Hyundai Motor, Kia to partner with India's Exide Energy on EV batteries (updated)

Exide Industries

08/04/2024 06:25

(Adds details)
       SEOUL, April 8 (Reuters) - Hyundai Motor Co  005380.KS 
and Kia Corp  000270.KS  on Monday signed a memorandum of
understanding with India's Exide Energy Solutions Ltd on battery
production for their electric vehicles (EVs) in India. 
    The South Korean auto duo said in a statement that their
partnership with Exide Energy, a subsidiary of Exide Industries
Ltd  EXID.NS , aims to localise their EV battery production in
India, specifically focusing on lithium-iron-phosphate (LFP)
cells.
        Hyundai Motor said it plans to invest about 3.25
trillion won ($2.40 billion) for 10 years starting 2023,
including for the launch of six EV models by 2028 and charging
stations, betting big on the world's third-largest auto market. 
  
        Kia plans to introduce locally optimised small-sized EVs
for the Indian market starting 2025, the statement said. 
  
        Analysts noted that India's rich natural resources
needed for EV supply chains, including lithium, as well as
affordable labour costs are attracting automakers to consider
producing EVs in the country. 
  
        "India's average manufacturing labour cost is estimated
to be about one-fourth of labour cost in China, and the
country's massive lithium mines would help automakers that plan
to make EVs in the country to better source necessary battery
materials," said Shin Yoon-chul, an analyst at Kiwoom
Securities.
  
         Shares of Hyundai Motor and Kia Corp were trading up
4.0% and 4.2%, respectively, as of 0519 GMT, versus the
benchmark KOSPI's  KS.11  0.4% rise. 
  
    ($1 = 1,352.9100 won)
  

 (Reporting by Heekyong Yang and Joyce Lee
Editing by Ed Davies)
 ((Heekyong.Yang@thomsonreuters.com;))