Chinese electric vehicle and battery manufacturer BYD has announced plans to expand its battery assembly operations in Brazil as part of a broader strategy to increase local production and strengthen its position in one of its most important overseas markets.
The company also plans to establish local production of stationary battery energy storage systems (BESS), further expanding its presence beyond the automotive sector.
Local Production Strategy Accelerates
BYD began production at its new manufacturing facility in Camaçari, Bahia, in 2025, initially assembling the Dolphin Mini electric vehicle using a Semi Knocked-Down (SKD) production process.
The model, known as the Dolphin Surf in Europe and the Seagull in China, is currently assembled from imported vehicle kits.
However, with Brazil’s preferential import tariffs for SKD kits having expired at the end of January 2026, BYD is accelerating efforts to localize production.
The company has already announced plans to introduce additional manufacturing processes, including welding, painting and stamping operations, beginning in the second half of 2026.
Battery Pack Assembly Planned
The latest expansion focuses on battery pack assembly rather than battery cell manufacturing.
Battery cells will continue to be produced in China before being shipped to Brazil, where they will be assembled into modules and battery packs for locally produced vehicles.
According to Alexandre Baldy, Senior Vice President of BYD Brazil, the company aims to increase the local content of vehicles manufactured in Brazil to 50% by early 2027.
“We are localising, so that we can truly become a Brazilian manufacturer. The battery is one more item, an important component,” Baldy said.
Ambition to Become Brazil’s Top Automaker
Localizing production forms a key part of BYD’s long-term strategy in Brazil.
The company has publicly stated its ambition to become the country’s best-selling automotive brand by 2030.
Increasing domestic manufacturing not only helps reduce exposure to import tariffs on vehicles and components but also strengthens BYD’s position as a local employer and industrial investor.
Major Investments in Manufacturing
The battery assembly expansion is included within BYD’s broader investment plan for its Camaçari automotive complex.
The company has committed approximately 5.5 billion Brazilian reais (around €930 million) to develop the facility and expand local production capabilities.
In addition, BYD plans to invest between 50 million and 60 million reais in expanding battery production for electric buses at its manufacturing facility in Manaus.
Energy Storage Business Expansion
Beyond vehicle batteries, BYD is also preparing to enter Brazil’s growing stationary energy storage market.
The company intends to establish a local production line for battery energy storage systems used in grid applications, renewable energy integration and commercial energy management projects.
A final decision regarding the location has not yet been made.
BYD is evaluating whether the BESS production line will be integrated with its existing battery operations in Manaus or developed at a separate site.
The company estimates the project will require an investment of approximately 500 million reais, equivalent to around €84.7 million.
Strengthening Latin American Presence
Brazil has become one of BYD’s most important international markets as the company expands aggressively outside China.
The combination of vehicle production, battery assembly and energy storage manufacturing reflects BYD’s broader strategy of building integrated local supply chains in key growth markets.
As demand for electric vehicles and energy storage solutions continues to increase across Latin America, the company is positioning itself to play a major role in both sectors while reducing dependence on imported components and improving local manufacturing capabilities.
Source: Reuters