BYD, the largest electric vehicle manufacturer in the world, has taken a significant step in its international expansion by acquiring mining rights in Brazil, its largest market outside of China.
This strategic move focuses on two sites located in the region known as the “Lithium Valley of Brazil.” BYD’s subsidiary in the country, Exploracao Mineral do Brasil, acquired these rights in 2023, although the project is currently in the research phase, having not generated operational income so far.
Originally founded as a battery manufacturer in the 1990s, BYD has achieved a remarkable rise in the automotive sector, surpassing competitors like Volkswagen and SAIC in 2023.
BYD secures the electric battery business
Their exclusive focus on electric and plug-in hybrid vehicles has shown significant results, consolidating their position as a giant in the sector.
According to recent documents, BYD’s mining rights extend approximately to 8.5 square kilometers in Coronel Murta. However, it is estimated that the operation of a mining site for electric vehicles in Brazil could take between 8 to 15 years to become a reality.
This underscores the complexity and time involved in establishing an adequate infrastructure for the extraction of critical minerals for the electric vehicle industry.
In addition, BYD has held talks with Sigma Lithium, the leading lithium producer in Brazil, regarding potential supplies and partnerships. Alexandre Baldy, head of operations at BYD in Brazil, indicated that there are “active discussions” about the possibility of a joint venture, although no concrete agreements have been reached yet.
Finally, BYD plans to open a new electric vehicle manufacturing plant, which will have an annual production capacity of 150,000 vehicles and will be located approximately 1,000 km from the acquired rights, reinforcing its commitment to solidly position itself in the Brazilian market.
