BYD has long entered the electric vehicle market in Brazil, both through commercial vehicles and passenger vehicles. This time, the Chinese manufacturer plans to produce electric vehicles and process battery raw materials in Brazil.
BYD has signed a letter of intent with the Bahia state government to establish three production lines in the city of Camaçari.
According to the Automotive Business report, the final details of the agreement between BYD and with the Bahia state government still need to be clarified. According to information so far, construction of the BYD electric vehicle factory in Camaçari will begin in June 2023.
The plan is that the assembly line for the preparation of raw materials and for electric commercial vehicles (buses and trucks) will start operating in October 2024. Meanwhile, the third line for electric cars and plug-in hybrids will start operating in January 2025.
BYD plans to use Ford’s former industrial site in the city, which will close in 2021. BYD will invest three billion rials (about 600 million euros) in the facility and create 1,200 direct jobs. However, the deal is not final yet. BYD still has to adjust some points in the letter of intent. Only then will the Chinese new energy vehicle giant make an official statement.
According to an Automotive Business report, the raw materials processing plant will produce lithium and iron phosphate from the Brazilian mine site to be used for BYD’s batteries. However, the plan will be exported to China. BYD apparently wants to maintain cell and battery production in China. Only an official statement from BYD will confirm this strategy.
So far BYD has placed all of its battery factories in China, the only exception being the planned battery plant in Europe.
The Bahia government itself is ready to provide BYD with tax incentives until 2032. In return, BYD promises to create job opportunities in the region.
