Exide shares rally 15% on Kia, Hyundai EV partnership

Exide Industries Ltd (NSE: EXIDEIND) rallied about 15% on Monday after Kia Corp (KRX: 000270) and Hyundai Motor Co (KRX: 005380) teamed up with the multinational based out of Kolkata, India on electric vehicles batteries.

Here's what it means for Exide shares

The memorandum of understanding signed this morning aims to accelerate competition in the world’s third largest auto market.

Kia and Hyundai said the partnership will localize production of their EV batteries especially the LFP (lithium-iron-phosphate) cells in India. According to Shin Yoon-Chul – a Kiwoom Securities analyst:

Exide shares have now more than doubled over the past twelve months.

Hyundai and Kia want to expand in India

Note that India is one of the largest revenue generating for Kia and Hyundai Motor – the other three being Western Europe, the United States, and their home town South Korea.

Hyundai is committed to investing $2.40 billion to launch new EVs and set up charging stations in India through 2028 while Kia wants to roll out small-sized locally optimised electric vehicles in the second-largest economy within Asia-Pacific.

On Monday, Exide Energy – a subsidiary of Exide Industries Ltd said it is aiming to produce electric vehicle batteries by the end of 2024.

Exide stock currently pays a dividend yield of 0.54% that makes it more attractive for investment.