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

Exide Industries Managing Director 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 electric vehicles 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.

However, Roy 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 Motor India did not immediately respond to requests for comment from the press.

The comments come as Exide prepares for the commercial rollout of its gigafactory. The company has started customer sample deliveries from its first NMC cylindrical cell production line, marking the first locally manufactured battery cells produced at the facility. The gigafactory is being established by its subsidiary, Exide Energy Solutions, in Bengaluru. The facility will have a capacity of 6 GWh in its first phase, which is planned to be expanded to 12 GWh.

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

For Hyundai Motor India, the localisation of battery cells is part of its plans to expand its electric vehicle portfolio. The automaker's first mass-market electric vehicle, the Creta Electric, has recorded sales below expectations. Hyundai is expected to unveil another electric vehicle during the current financial year as it seeks to expand its presence in India's EV segment.