Exide Flags Delay in Hyundai-Kia Battery Cell Localisation Project

Exide Industries has said its battery cell localisation project with Hyundai Motor and Kia is facing delays, although work on the project continues alongside the company's broader lithium-ion cell manufacturing plans.

Exide Industries MD Avik Roy said the project remains under discussion and is progressing as a separate initiative from the company's first 6 GWh lithium-ion cell manufacturing facility in Bengaluru.

"That discussion, that activity [plans with Hyundai and Kia] is going on parallelly. As I said, this is a concurrent project we are running. And this will not come this year, this calendar year, or this fiscal year rather," Roy said while speaking to investors.

Hyundai and Kia announced a partnership with Exide in 2024 to localise battery production for their EVs in India. The collaboration focuses on LFP cells and is intended to support the South Korean automakers' EV plans in the country. 

Roy said the project is structured as a co-investment and would involve a dedicated customised production line for Hyundai rather than the initial production lines being commissioned at Exide's gigafactory.

"It is a co-investment and it is not going to be a complete line. It could be half a line, for customisation for Hyundai. So far it is going on. Of course there are delays, but we will let you know when it progresses," Roy said.

Roy, however, did not explain the reasons for the delay, and it remains unclear whether it is related to the co-investment structure, project execution or any other factor.

Hyundai India did not immediately respond to Autocar Professional’s request for comment.

The comments come as Exide prepares for the commercial rollout at its gigafactory. The company started customer sample deliveries from its first NMC cylindrical cell production line, marking the first locally manufactured battery cells to come out of the facility. 

The gigafactor is being set up under its subsidiary Exide Energy Solutions in Bengaluru. The facility will have a capacity of 6 GWh in its first phase, which will eventually be ramped up to 12 GWh. 

Sample supplies from the LFP prismatic line for three-wheeler and telecom applications have also begun, while revenue contribution from the first 6 GWh plant is expected to commence during the current financial year.

For Hyundai Motor India, the localisation of cells assume significance as it looks to expand its electric vehicle portfolio. The automaker's first mass-market electric vehicle, the Creta Electric, has struggled to gain traction in the market, with sales remaining below expectations. 

Hyundai is expected to unveil another electric vehicle during the current financial year as it seeks to strengthen its presence in India's fast-growing EV segment.