BYD's upbeat view of Brazil as an EV production and export hub

Chinese company Build Your Dreams (BYD), a manufacturer of solar batteries and electric vehicles (EVs), announced earlier this month that it will invest 3bn reais (US$620mn) to build three EV plants in the Camaçari complex, 50km from Salvador in Bahia state.

The plants will produce cars, trucks and bus chassis, as well as processing lithium and iron phosphate, and is expected to start operating in the second half of 2024. 

Upbeat on sales in Brazil, BYD's director of institutional relations, Marcello Schneider, speaks to BNamericas about the project.

BNamericas: Why did BYD decide to establish the EV plants in Brazil? What advantages does the country offer?

Schneider: BYD sees the Brazilian market as a leader in Latin America and with enormous potential for transformation towards a green and sustainable economy. For this reason, it recently announced the plan to build the Camaçari complex, consisting of three manufacturing units, one of which will produce hybrid and electric cars [with an estimated capacity of 150,000 units per year in the first phase, potentially reaching 300,000/y later], making them more accessible to the market. The second will be dedicated to the production of electric trucks and bus chassis and the third to processing lithium and iron phosphate, which will serve the foreign market, using the existing port structure on site.

During President Lula's recent visit to China, we received signs of the commitment of the various government bodies – federal, state and municipal – to encourage electrification, whether with tax breaks, investment in recharging structure or fleet acquisition. It’s important that the incentives are not only for the industry, but also for the Brazilian consumer.

BNamericas: What are the sales forecasts for the first few years?

Schneider: We’re optimistic about sales in Brazil. Our recently launched model, the Dolphin, sold 1,000 units in less than five days, a record in the history of electric cars in Brazil. 

In June 2023, BYD sold 253,046 electrified vehicles to the global market, a year-on-year increase of 88.2% compared with the previous year. 

BYD is the largest electric vehicle manufacturer in the world, with more than 4.6mn new energy cars sold.

BNamericas: What is the average cost of producing a BYD electric car? Does the company have a goal to reduce this cost in the coming years? 

Schneider: The cost of an electric car depends a great deal on the size and the embedded technology. But we can't disclose the figures for our commercial strategy.

BNamericas: What will be the local content of the cars? What will come from China and what will actually be produced in Brazil?

Schneider: The unit that will produce hybrid and electric cars will have an estimated capacity of 150,000 units per year in the first phase. All the details about the production are still being planned by our teams in Brazil and China.

BNamericas: Can Brazil become an export hub for EVs in the future, either to Latin America or to other regions of the world?

Schneider: By setting up its first industrial complex in the country, BYD Brazil is concerned with maintaining premises that direct its operations abroad; creating products that don't emit pollutants, designed and executed with cutting-edge technology and high investment in research and development, always in a pleasant and comfortable work environment for employees, suppliers and visitors. 

The plan is that, in addition to Brazil, vehicles manufactured here can also be exported to neighboring countries.

BNamericas: Why the plan to produce lithium and phosphate? 

Schneider: BYD produces batteries using lithium iron phosphate and it’s important to find diverse sources of raw materials to supply the production lines. Lithium iron phosphate modules have excellent safety, long cycle life, good temperature performance and high energy density. They are also economical and non-polluting.

BNamericas: Does BYD intend to develop RD&I projects in the area of electric mobility in Brazil? Are there investments planned?

Schneider: BYD is always ready to innovate in the field of electric mobility solutions. We know how to capture energy, store it and use it in our vehicles. In addition to building the factories, we want to bring our technology and develop research and product development centers in Brazil as well.

BNamericas: Besides cars, buses and trucks, can the company produce other types of electric vehicles here?

Schneider: Today, BYD's production already includes electric buses and photovoltaic panels in Campinas in São Paulo state and a battery factory for electric vehicles in Manaus in Amazonas. The company also has monorail projects in Brazil.