Construction work recently began on BYD’s new production facility in Brazil, a Chinese electric car manufacturer. Three separate production facilities are currently being constructed by the company on the site of a former Ford industrial site in the state of Bahia.
With a commencement date expected between the end of 2024 and the start of 2025, the first facility will be focused on producing electric and hybrid cars. The plant will initially be able to produce 150,000 vehicles per year. It has the potential to rise to 300,000 in later years.
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Manufacturing truck and e-bus chassis will be the main priority of the second plant. In Brazil, there is a rising demand for electric vehicles for public transport. This development will help meet that demand.
The third plant, which will be used entirely to process iron phosphate and lithium for the international market, will be the last one. The move supports BYD’s dedication to renewable resources and sustainable energy sources.
BYD’s new production facility project funding
BYD is investing three billion Brazilian reals (or around 570 million euros) into the endeavor. This investment will cover expenses for the site’s conversion and the construction of the plants. As a result of the initiative, the local economy will be significantly boosted. Additionally, 5,000 new jobs will be created in the region.
BYD will be receiving tax breaks for the next ten years. This is part of the deal with the state of Bahia. The government of Brazil understands how crucial it is to bring in foreign investment for the renewable energy and electric automobile sectors.
BYD already has battery assembly plants and facilities for electric bus chassis operating in various regions of Brazil. In addition to these, they have their Bahian production facilities. The company also aims to expand its presence in South America by establishing a battery material factory in Chile.
Constructing these new facilities is a strategic decision made by BYD. It positions the region as a technological hub while additionally allowing the company to meet Brazil’s rising demand for electric vehicles. In order to establish cutting-edge technologies, like flex-hybrid engines that combine ethanol and electric drives, BYD plans on building a research and development center in Bahia.
The BYD investment comes at an ideal moment for Bahia, which currently has Brazil’s lowest unemployment rate. The governor of Bahia, Jeronimo Rodrigues, and the vice president of Brazil, Geraldo Alckmin, all acknowledge the benefits for the region’s economy and the environment of BYD’s presence.
Brazil is solidifying its place as a key market for electrified cars in South America. It continues to attract big companies in the automotive industry, including BYD, Chinese carmaker Great Wall Motor (GWM), and Volkswagen.
