BYD to start EV and battery manufacturing in Brazil

BYD has signed a letter of intent with the local government of Camacari, in the state of Bahia, Brazil, to set up a manufacturing facility for electric vehicles and for processing of raw battery materials.

The company plans to begin the construction of the facility in June next year. The manufacturing plant will have two production lines - one dedicated to raw battery materials preparation and the other will focus on manufacturing of electric buses and trucks. These two lines are going to be operational no later than October 2024.

The third production line will follow later and will be dedicated to manufacturing of electric cars and plug-in hybrid vehicles. The company plans for this line to go live in January 2025.

The reason why BYD chose Camacari is the former Ford industrial site, which closed down in 2021. BYD is committing €600 million to convert the existing facilities to EV and battery production and will create 1,200 jobs directly within the new factory.

It’s not a done deal yet, the company has to address some issues raised by the government and once both sides are happy with the final points, the official announcement will be made.

The battery production site will produce lithium and iron phosphate sourced from Brazilian suppliers. Interestingly enough, the resulting raw materials themselves will be exported to China and the Brazilian government already agreed to that. BYD does not wish to manufacture the battery cells in Brazil, which is consistent with its global strategy - all its new battery factories are being built in China with a one exception for its new European factory.

BYD has been promised various tax intensives by the local government and those will stay in place until 2032. In return the company offers the investment, new jobs and it will conduct a feasibility study for importing of its vehicles made in China through the port of Salvador.

€600 million is a rather large investment into the local economy and 1,200 jobs will make a huge difference to the local population, especially after Ford closed down its facility. Electric buses made locally will advance the transition of public transport to electricity and having locally manufactured electric cars should make them more affordable.

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