Exide Industries shares were up by more than 13% on Monday mid-day after the company announced that Hyundai and Kia were partnering with a subsidiary to localize electric vehicle (EV) battery production in India.

What Happened: As part of their EV expansion strategy, Hyundai and Kia signed a Memorandum of Understanding (MOU) with Exide Energy Solutions, aiming to produce lithium-iron-phosphate (LFP) cells locally for the Indian market.

This collaboration marks Hyundai and Kia’s first step in utilizing domestically produced batteries in their forthcoming EV models in India, positioning them as pioneers in the field.

Heui Won Yang, President and Head of Hyundai Motor and Kia’s R&D Division, highlighted the importance of the partnership for achieving cost competitiveness through local battery production, in line with India’s carbon neutrality goals.

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Hyundai Motor Group views this cooperation as the start of its initiative to enhance its battery development, production, and supply chain within the Indian market.

Hyundai also plans to introduce a high-volume EV model in 2025, currently offering the IONIQ5 and Kona, while Kia sells the EV6 model in India.

Exide Energy Solutions, a subsidiary of Exide Industries Ltd with over 75 years of experience in lead-acid batteries, was established in 2022 to venture into lithium-ion cell, module, and pack manufacturing.

Price Action: Exide Industries Ltd. shares were up 12.35% at ₹361.60 on Monday mid-day. Battery sector peer Amara Raja Energy & Mobility Ltd. was also up 6.93% at ₹866.80 amid the news.

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