WionDrive News Desk 
The South Korean auto duo Hyundai Motor Co and Kia Corp signed a memorandum of understanding with India’s Exide Energy Solutions Ltd on Monday for the production of batteries for their electric vehicles in India.
Hyundai Motor Co and Kia Corp issued a statement concerning their partnership with Exide Energy saying that this collaborative effort aims to localise their EV battery production in India with a special focus on lithium-iron-phosphate (LFP) cells.
Hyundai Motor said that it plans to make an investment of about 3.25 trillion won (USD 2.40 billion) for the next 10 years starting 2023 which includes the launch of six EV models by 2028 along with charging stations. The company is keen to bet big time on the world’s third-largest auto market – India.
According to the statement, Kia plans to introduce locally optimised small-sized electronic vehicles (EVs) catering to the Indian market beginning as early as 2025.
Analysts have noted that India with its rich natural resources necessary for EV supply chains, including lithium and reasonable labour costs is proving to be an attractive deal for automakers to push toward localised production of EVs.
Shin Yoon-chul, an analyst at Kiwoom Securities, said, “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.”
Exide Energy is aiming to produce EV battery cells in India by the end of this year. Meanwhile, automakers such as Tesla and VinFast are also actively seeking to tap India to build facilities for EV production.
