Chinese automaker BYD is set to establish three production facilities on a former Ford industrial site located in Brazil’s Camaçari industrial park. The ambitious project will involve the construction of a plant for electric and hybrid cars, another for electric bus and truck chassis, and a third facility dedicated to processing lithium and iron phosphate for global distribution.
To transform the site into a state-of-the-art manufacturing hub, BYD is prepared to allocate up to three billion Brazilian reals, equivalent to around 570 million euros. This announcement follows signals from the Brazilian government indicating its intention to provide subsidies to BYD for the establishment of a new electric vehicle center. Notably, Ford shut down the site in 2021, making it an attractive opportunity for BYD’s expansion plans.
BYD’s move into Brazil has been on the horizon for some time. As early as November 2022, the company expressed its intentions to commence electric vehicle production and raw battery material processing in the South American country. Back then, BYD also signed a memorandum of understanding with the government of Bahia state, where the industrial park is situated.
The projected timeline for the new plants’ operations is the second half of 2024, according to Bahia state authorities. The passenger car plant will have an initial annual capacity of 150,000 electric and hybrid vehicles, with the potential to double to 300,000 units as demand grows. Overall, BYD plans to generate over 5,000 direct and indirect job opportunities at the Camaçari site.
While these recent government declarations shed light on the plans, there were earlier reports suggesting that lithium and iron phosphate would be sourced from Brazil but then shipped to China. This indicates BYD’s preference to keep cell and battery production within its home country. However, the current government statement and agency reports do not explicitly confirm this strategy. Nonetheless, it aligns with BYD’s existing operational approach, as the company is constructing all its new battery cell factories in China, with only limited mention of a planned battery plant in Europe.
The upcoming plants in Bahia will not be BYD’s first production facilities in Brazil. The company already operates a manufacturing facility for electric bus chassis in Campinas, located in the state of São Paulo. Additionally, BYD runs a factory in Manaus, the capital of Amazonas state, dedicated to battery module production for lithium iron phosphate batteries. Furthermore, there are reports of BYD’s plans to construct a battery materials factory in Chile.
BYD’s investment in Brazil mirrors the trend of other automakers eyeing the country for production expansion. Great Wall Motor (GWM), a Chinese automaker, is planning to establish an electric vehicle factory in São Paulo state next year. Volkswagen (VW) also recently announced a significant investment of one billion euros by 2026 to bolster its product portfolio in South America, with a particular focus on Brazil.