BYD, a Chinese carmaker, is seeking to purchase lithium mines in Brazil to extend its electric car production beyond Asia.
Stella Li, BYD’s Global Vice President, revealed this plan recently. The new factory in Brazil will process lithium and iron.
Stella Li expects to finish construction in under two years. This facility will serve international markets. BYD aims for cost-effective resources.
“We want to own mining operations in Brazil,” Li stated in São Paulo.
Latin America is becoming a key market for electric vehicles. Companies are seeking metals essential for EV production.
For instance, Stellantis and Rio Tinto are investing in Argentina. They are interested in a large copper deposit.
Ford also joined the trend. The company made a deal with Chilean lithium producer SQM. This move supports Ford’s electric vehicle plans.
BYD’s leadership visited several Latin American countries. In Chile, they met with President Gabriel Boric. The focus was on boosting the local lithium industry.
In northeastern Brazil, BYD is investing heavily. It will spend R$3 billion on its first non-Asian electric car factory.
Additionally, BYD will set up a research and development center there.
Great Wall Motor, a Chinese competitor, is also entering Brazil. They plan to launch electric models next May.
“We’ll build the factory quickly,” said Li. “All future cars sold here will be made in Brazil. BYD will become a Brazilian company.”
Background
BYD’s move to invest in Brazil is strategic for several reasons. First, Latin America has abundant resources crucial for electric cars.
This includes lithium, a key component in batteries. Second, entering Brazil allows BYD to tap into a new market.
This can help diversify its global presence. Historically, BYD has been a major player in Asia’s electric car scene.
Expanding to Brazil signifies a new chapter for the company. It also aligns with global trends that are moving away from fossil fuels to cleaner, sustainable options.