BYD evaluates expanding the Manaus factory or building a new unit in Brazil, following the government’s decision on the storage auction, with its own investment of up to R$ 500 million
BYD has decided to invest up to R$ 500 million to expand battery production in Brazil, following the federal government’s decision to hold the first auction for energy storage systems for the National Interconnected System. The company is considering expanding the Manaus unit or building a new factory, with a decision expected within 90 days.
Storage auction weighs in BYD’s decision
The investment was announced amid preparations for the first federal auction aimed at contracting energy storage systems. The event is scheduled for December 2 and 4.
According to BYD Brazil’s Senior Vice President, Alexandre Baldy, the model defined by the government was one of the determining factors for the company’s decision. The first stage will require national content in the participating projects.
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These criteria will still be defined by the National Bank for Economic and Social Development (BNDES). For BYD, this rule can directly influence the size of the investment.
“This will determine the size of the investment for the expansion or construction of this new industrial unit,” said Baldy.
The company intends to use its own resources for the project. The release of the amount will occur after the completion of studies on the location of the expansion.

New factory or expansion in Manaus
BYD has not yet decided whether the investment will be directed towards expanding the existing factory in Manaus (AM) or building a new industrial unit in the country.
“The investment is a decision made. Now, where it will be, at this moment, is the result of study,” said Baldy.
Today, the company produces LFP batteries, lithium iron phosphate, in Manaus. This type of battery is used in electric buses and energy storage systems for backup applications.
The new phase reinforces the company’s strategy to expand its presence in the Brazilian energy solutions market, in addition to its already consolidated role in electric mobility.
Location should consider incentives and logistics
The choice of location will also depend on the incentives provided for projects participating in the storage auction.
The government intends to grant a bonus to enterprises installed near strategic points identified by the Energy Research Company (EPE).
These areas are distributed across states such as Alagoas, Bahia, Ceará, Minas Gerais, Paraíba, Pernambuco, Piauí, and Rio Grande do Norte.
The mechanism will function as a reduction factor in the value of bids presented by participants. The final criteria, however, will still be defined by the responsible authorities.
BYD’s initial expectation is to generate at least 400 direct jobs with the new investment.
Company already has operations in three states
BYD maintains industrial operations in different regions of Brazil. In addition to the battery factory in Manaus, the company has an electric bus unit in Campinas (SP) and a factory for electric and hybrid vehicles in Camaçari (BA).
The company did not detail which components could be produced locally in the new phase. Baldy stated that the strategy is to expand national content whenever there is industrial feasibility.
“Whatever can be nationalized, we will do it,” he declared.
In March of this year, the company also announced the creation of its first automotive testing and evaluation center in Rio de Janeiro, with an expected investment of R$ 300 million.
Market can advance beyond public contracting
BYD’s assessment is that the auction represents only the beginning of a broader market for energy storage in Brazil.
According to Baldy, the regulation of the sector by the National Electric Energy Agency (Aneel) and the interest of different economic segments tend to boost demand for the technology.
“Now it enables not only the issue of the auction itself but the market as a whole. This makes various segments look at this technology,” he stated.
The company has already started conversations with energy distributors, agribusiness companies, mining companies, and other sectors that can use large-scale storage systems.
This article was prepared based on information from Valor Econômico and statements by the senior vice president of BYD Brasil, Alexandre Baldy, with data, numbers, and statements preserved as per the consulted material.


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