BYD delivers its US$ 609 million investment plan to Brazil

Photo: President Luiz In谩cio Lula da Silva with BYD representatives at the Alvorada Palace. Source: Flickr

Last Wednesday, January 24, the Brazilian president, Luiz In谩cio Lula da Silva, met in Brasilia with representatives of the Chinese electric car manufacturer BYD, to discuss the installation of a factory in the state of Bahia, the company鈥檚 first factory outside Asia.

According to the Chilean outlet Am茅rica Econom铆a, Alexandre Baldy, chairman of the board of BYD Brazil, said that the company intends to formalize its production of electric vehicles in Brazil, ranging from lithium exploration and processing to the manufacturing of batteries and vehicles.

The company will also include ethanol and flex-fuel hybrid vehicles in its Brazilian outpost, a unique approach compared to other global markets.

They also stressed that the goal is to make Brazil a regional hub for BYD in Latin America, a strategy which is in line with the Brazilian government’s policies, which aim to boost the industry and accelerate the decarbonization within Brazil.

In a statement shared on X, president Lula highlighted the contributions the new plant could bring to the country: “It is estimated that more than 10,000 jobs will be created and US$ 609.8 million will be invested, boosting the local economy and contributing to a greater production of sustainable vehicles with clean energy,” he stressed.

This alliance has been in the making for some time. In July last year, BYD reached an agreement to invest close to R$3,000 million reais ($2.5 billion), in the state of Bahia and simultaneously operate three factories, according to the Colombian outlet La Rep煤blica.

This new agreement is also expected to reduce electric vehicle prices in the Latin American market, since price is a major barrier for users seeking to access the market, said Diego Martins, Wallbox’s regional manager for Latin America, in an interview.

That same day, Lula also received the President of General Motors International, Shilpan Amin. During the meeting, GM executives announced the first phase of a new investment plan in Brazil, which will run from 2024 to 2028, with a total value of 7 billion reais, according to the Spanish media ReporteAsia.