More Stories

Informist, Monday, May 19, 2025

 

--Sources: Exide in advanced talks with 2-3 OEMs to develop EV batteries

--Sources: Exide arm to start lithium-ion battery production by FY26

 

By Avishek Rakshit

 

KOLKATA – After striking deals with South Korean Hyundai Motor Co. and Kia Corp. to jointly develop electric vehicle batteries for their cars in India, Exide Industries Ltd. is in advanced stages of talks with two to three more electric vehicle makers in the country to build such car batteries jointly, officials aware of the development told Informist.

 

Such deals are crucial for Exide's lithium-ion battery business, as all lithium-ion batteries are sold directly to the original equipment makers and not in the aftermarket. Lithium-ion battery packs are integrated into the electric car and replacements of such batteries are offered only by the car manufacturers.

 

Currently, Exide's portfolio in car and 2-wheeler batteries comprises lead-acid batteries, which are sold directly to the original equipment makers and individual vehicle owners in the replacement market.

 

"Exide is in talks with all major automotive makers in the country to design and develop lithium-ion batteries, but the advanced stage of discussions is with 2-3 OEMs (original equipment makers)," one of the officials said.

 

Exide had in April 2024 signed agreements with Hyundai and Kia to develop lithium-ion batteries for their electric vehicles in India. Hyundai and Kia are focusing on expanding their electric vehicle portfolio in India and thus aim to localise their battery production, specifically focusing on lithium-ion-phosphate cells. According to Hyundai, the agreement with Exide will position it as a pioneer in using batteries produced in the country.

 

The officials did not disclose the names of the original equipment makers with whom Exide is in talks, citing non-disclosure agreements that the company have signed. The company is setting up the first phase of its 12 gigawatt hour factory near Bengaluru in Karnataka at an investment of around INR 50 billion and production is expected to commence this financial year, a company official said. This plant is being set up by Exide's wholly owned subsidiary, Exide Energy Solutions Ltd., which is into the business of manufacturing lithium-ion cells, modules, and packs incorporating a portfolio of multiple chemistries and form factors.

 

Initially, one production line each of lithium-ion-phosphate and lithium nickel manganese cobalt oxide batteries will commence production, and will be expanded later.

 

Exide will plan the expansion of the battery plant based on the demand for lithium-ion batteries and the agreements it signs with the original equipment makers, the official said. The first phase has a production capacity of 6 gigawatt hour, and the second phase will have a similar manufacturing capacity. Besides manufacturing lithium-ion batteries for electric vehicles, including 2-wheelers, the company will also make similar batteries for the telecom sector and data centres.

 

Exide officials said that the company's agreement with its partner for lithium-ion battery manufacturing, SVOLT Energy Technology Co. Ltd. of China, assures Exide access to raw materials and supply channels of SVOLT at competitive rates needed for lithium-ion battery manufacturing.

 

Monday, shares of Exide Industries ended at INR 392.80 on the National Stock Exchange, down 0.1% from the previous close.  End

 

IST, or Indian Standard Time, is five-and-a-half hours ahead of GMT

 

Edited by Saji George Titus

 

 

For users of real-time market data terminals, Informist news is available exclusively on the NSE Cogencis WorkStation.

 

Cogencis news is now Informist news. This follows the acquisition of Cogencis Information Services Ltd by NSE Data & Analytics Ltd, a 100% subsidiary of the National Stock Exchange of India Ltd. As a part of the transaction, the news department of Cogencis has been sold to Informist Media Pvt Ltd.

 

Informist Media Tel +91 (22) 6985-4000 /+91 (11) 4220-1000

Send comments to feedback@informistmedia.com

 

© Informist Media Pvt. Ltd. 2025. All rights reserved.