- Exide Industries Hyundai Kia Battery Localisation Project faces delays.
- Gigafactory production advances despite localisation timeline slipping.
Exide Industries has confirmed that its battery cell localisation initiative with Hyundai Motor India and Kia is experiencing delays, although development work continues alongside the company's broader lithium-ion battery manufacturing programme in India. The company clarified that the localisation effort remains active as a separate project while preparations continue for commercial production at its first lithium-ion cell manufacturing facility in Bengaluru.
Managing Director Avik Roy said discussions and development activities with Hyundai and Kia are progressing independently from Exide's first-phase 6 GWh manufacturing plant. According to Roy, the localisation programme is being executed as a concurrent initiative and is not expected to be completed during the current fiscal year. While acknowledging the delay, he reiterated that the project continues to move forward and that additional updates will be shared once significant progress is achieved.
In 2024, Hyundai and Kia entered into a partnership with Exide Industries to localise battery cell production for electric vehicles in India. The collaboration is centred on lithium iron phosphate (LFP) battery technology, supporting the South Korean automakers' long-term electric mobility strategy in the country. The localisation programme is intended to strengthen domestic battery manufacturing capabilities while reducing dependence on imported cells for future EV production.
Roy explained that the collaboration has been structured as a co-investment arrangement rather than a standard production contract. Instead of utilising the initial production lines at Exide's gigafactory, the project is expected to involve a dedicated customised production line for Hyundai. He added that the customised line may represent only part of a full manufacturing line, reflecting the specialised nature of the partnership. However, he did not specify the reasons behind the delayed implementation.
Although the company acknowledged the revised timeline, no clarification was provided on whether the delay is linked to the co-investment structure, execution challenges or other operational considerations. Hyundai Motor India also did not immediately comment on the development following requests for a response.
While the localisation project progresses separately, Exide Industries continues to advance its lithium-ion manufacturing operations. The company has started customer sample deliveries from its first NMC cylindrical battery cell production line, representing the first locally manufactured battery cells produced at the Bengaluru facility. This milestone marks an important step toward commercial-scale domestic battery manufacturing.
Exide's Bengaluru Gigafactory Production Roadmap
The battery manufacturing facility is being established through Exide Energy Solutions in Bengaluru and is designed to expand in phases as production demand increases.
| Project Component | Current Status |
|---|---|
| First Phase Capacity | 6 GWh |
| Planned Expansion | 12 GWh |
| NMC Cylindrical Cells | Customer sample deliveries started |
| LFP Prismatic Cells | Sample supplies for three-wheelers and telecom applications commenced |
| Commercial Revenue | Expected during current financial year |
Alongside cylindrical battery production, sample supplies from the LFP prismatic battery line have also commenced for three-wheeler and telecom applications. Exide Industries expects revenue generation from the initial 6 GWh manufacturing plant to begin during the current financial year, supporting the company's entry into India's expanding advanced battery manufacturing ecosystem.
Impact on Hyundai's Electric Vehicle Strategy
Battery localisation remains strategically important for Hyundai Motor India as the company works to expand its electric vehicle portfolio. The automaker's first mass-market electric vehicle, the Creta Electric, has recorded lower-than-expected market traction. Hyundai is also expected to introduce another electric vehicle during the current financial year as it aims to strengthen its position in India's rapidly growing EV market. Progress on domestic battery manufacturing could play a significant role in supporting future product competitiveness and localisation objectives.
Frequently Asked Questions
Why has the Exide Industries battery localisation project with Hyundai and Kia been delayed?
Exide Industries has confirmed that the battery localisation project with Hyundai and Kia is progressing but will not be completed during the current fiscal year. The company has not disclosed the specific reasons behind the delay, stating only that the initiative continues as a concurrent project separate from its primary gigafactory operations. The localisation programme remains under active discussion, and Exide has indicated that further updates will be shared as the project reaches important development milestones.
What is the status of Exide Industries' lithium-ion gigafactory in Bengaluru?
Exide Industries has started customer sample deliveries from its first NMC cylindrical battery cell production line at its Bengaluru gigafactory. Sample supplies of LFP prismatic cells for three-wheeler and telecom applications have also begun. The first phase of the facility will have a manufacturing capacity of 6 GWh, with future expansion planned to 12 GWh. Commercial revenue from the initial production phase is expected to begin during the current financial year.
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