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BYD has plans to enter the mining segment. The multinational plans to mine lithium to supply the growing demand for batteries for electric cars.
BYD, a giant Chinese multinational, is considering investing in lithium mining in Brazil to support the production of batteries for electric cars. After official confirmation and launch of cornerstone of the Camaçari (BA) factory, the Chinese automaker seeks to expand its supply of raw materials.
BYD intends to have mining operations in Brazil
In interview for Bloomberg Line During the opening of a brand dealership in São Paulo (SP) this week, Stella Li, global vice president of BYD highlighted that the company prefers to buy any available and affordable resource, however it needs to be competitive.
At the same time, the multinational BYD also prefers to have some mining operation in Brazil. At the beginning of last week, BYD laid the foundation stone for its hybrid electric car and battery factory in Camaçari, Bahia, a site that belonged to Ford and had been returned to the Bahian government after long negotiations with the North American brand.
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And the largest manufacturer of plug-in electrified vehicles in the world (battery electric cars and plug-in hybrids), BYD formalizes the agreement to build the company's three units, one to produce electric and hybrid cars, another for electric trucks and buses and a third dedicated to processing lithium and iron. phosphate for batteries with a focus on foreign markets, at least initially.
The plan of Chinese automaker is to use the buildings left by Ford, however the layout will be completely modified and the size of the facilities expanded, the total expected investment is R$3 billion. With the capacity to manufacture 150 electric cars in its first phase, the complex is scheduled to begin operations between the end of 2024 and the beginning of 2025.
Where does BYD plan to start in the lithium mining space?
Returning to the topic of lithium, BYD is keeping an eye on mining operations in the north of Minas Gerais, in the Jequitinhonha Valley, which could serve as support for the factory in Bahia. The highlight in the region is the operation of Sigma Lithium, which has a large deposit of lithium rock, known as Cyril's Grotto, which is sustainable and operates with a dry mining process, without tailings and with the reuse of water captured and treated from the Jequitinhonha River.
This operation has already attracted the attention of other companies, such as Tesla, which even considered the purchase of Sigma Lithium Corp, a Canadian mining company that is controlled by a Brazilian investment fund. Be that as it may, the installation of the BYD complex in Bahia will boost other businesses linked to the production of vehicles and electric mobility in the country. The estimate is that the factory will begin operating between the end of next year and the beginning of 2025.
Tesla also seeks to enter the mining market
In January this year, the American automaker announced that it was studying the purchase of Sigma Lithium Corp, a mining company that is controlled by a Brazilian investment fund and has mining operations. lithium extraction in Minas Gerais.
The company's main reason is the growing global demand for lithium, crucial for production in batteries for electric cars. According to reports, the car manufacturer Elon Musk has been talking to potential advisers about an offer, according to sources.
In addition to the option for the Canadian mining company operating in Brazil, Tesla would be considering other options and even its own company to refine the metal. Sigma Lithium's own shareholder has been exploring a potential sale of the company and evaluating the interest of mining companies and automakers.
