(BRK.A), (BRK.B)
BYD, the Chinese automobile manufacturer backed by Berkshire Hathaway, announced the signing an agreement to establish its presence in Brazil’s state of Bahia. What makes this endeavor truly remarkable is that BYD will simultaneously commence operations in three factories within the Camaçari complex, located just 50 kilometers away from the vibrant city of Salvador.
This groundbreaking venture, with an investment exceeding R$ 3 billion (US$620 million), sets a historic milestone in the Brazilian automotive industry. However, it goes beyond mere vehicle production. BYD’s audacious mission, encapsulated in the slogan “Cool the Earth by 1°C,” represents a resolute commitment to energy transition and sustainable mobility. In essence, it signifies an irreversible green revolution.
The establishment of domestic production facilities by BYD holds the promise of more competitive prices and opens up the possibility for the car-loving population to realize their modern-era consumer dream: owning an electric vehicle parked in their garages.
The ambitious complex will comprise three distinct manufacturing units, each serving a specific purpose. One unit will be dedicated to the production of chassis for electric buses and trucks, providing a solid foundation for the future of sustainable transportation. The second unit will focus on manufacturing hybrid and electric automobiles, with an estimated capacity of 150,000 units per year during the initial phase. Lastly, the third unit will specialize in the processing of lithium and iron phosphate, catering to the global market.
Leveraging the existing port infrastructure at the location, this unit will play a crucial role in meeting the growing demand for these essential materials.
Stella Li, the Executive Vice President of BYD and CEO of BYD Americas, emphasizes the significance of this moment for BYD in the Americas. She states, “These new factories in Bahia will bring innovation and the highest standards in technology. This will enable the introduction and acceleration of electromobility in the country, a pivotal movement in combating climate change and enhancing people’s quality of life.”
The three factories are scheduled to commence operations in the second half of 2024, heralding a new era of sustainable automotive manufacturing in Brazil. In addition to the positive impact on the environment, this endeavor is expected to generate over 5,000 jobs in the coming years. Tyler Li, the President of BYD Brazil, stresses the social contribution of the project, saying, “We aim to hire local labor starting this year to provide them with the necessary training and knowledge transfer. At BYD, we are deeply committed to creating value and making a meaningful difference in the lives of Brazilians.”
BYD’s new complex is poised to attract suppliers from various sectors, including technical parts and services. The company is determined to contribute to regional development by giving priority to local suppliers. Furthermore, for civil construction works, BYD plans to prioritize hiring established companies in the region, fostering economic growth and synergy within the local business community.
As BYD forges its path in Bahia, it not only brings an unprecedented manufacturing venture to Brazil but also carries with it a vision of a greener future. With its resolute commitment to energy transition and sustainable mobility, BYD is setting a new standard in the automotive industry, paving the way for a world where innovation and environmental responsibility go hand in hand.
© 2023 David Mazor
Disclosure: David Mazor is a freelance writer focusing on Berkshire Hathaway. The author is long in Berkshire Hathaway and BYD, and this article is not a recommendation on whether to buy or sell a stock. The information contained in this article should not be construed as personalized or individualized investment advice. Past performance is no guarantee of future results.