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R$125 billion in investments in the automotive industry in Brazil promises to create jobs, increase vehicle production and catalyze the Brazilian steel and mining sectors

Written by Flavia Marinho
Published 20/05/2024 às 19:29
steel - mining - industry - pipes - production - stainless steel - electric cars - jobs
Revolution in Brazilian mining: Billion-dollar investment in the automotive industry predicts an increase in production and demand for steel in Brazil

Revolution in Brazilian mining: Billion-dollar investment in the automotive industry predicts an increase in production and demand for steel in Brazil

Good news for Brazilian mining! In April, the National Association of Motor Vehicle Manufacturers (Anfavea) revealed an investment of R$125 billion until 2032, to be made by automakers in Brazil. This investment aims to increase vehicle production, create jobs and decarbonize the sector. Marcos Ledo, CEO of Krominox, a national leader in the production of stainless steel tubes and solutions, believes that this optimistic scenario will boost other markets that supply the automotive sector.

“The stainless steel industry makes it possible to build lighter and more durable vehicles, and demand for this material is expected to grow in the coming years. Stainless steel is predominant in structures such as car bodies and exhaust systems, including parts such as exhaust pipes, tubes and catalyst capsules. Furthermore, it is used in safety and braking applications, such as the wire mesh for airbags and brake discs. Filters, fuel tanks and oil gauges, which come into contact with abrasive and corrosive substances, are also made of stainless steel”, explains Ledo.

There are already more than 150 thousand electric cars in circulation in Brazil

The electric car market also has positive projections. According to a study by the consultant AlixPartners, the share of electric vehicles in the global automobile market could reach 54% by 2035.

In Brazil, despite more modest sales, ABVE – Brazilian Electric Vehicle Association – reports that there are already more than 150 thousand units in circulation. This scenario is promising for manufacturers of stainless steel solutions.

Electric motors and rechargeable batteries, which contain a large volume of metal alloy, are examples of items that require stainless steel.

“Electric motors and rechargeable batteries, which contain a large volume of metal alloy, are examples of items that require stainless steel. This material will also be used in other elements of electrified models, in addition to bodies and applications focused on safety and braking, such as combustion cars”, says the Krominox executive.

Another relevant application of stainless steel in the electric car market, according to Ledo, is in refueling points, or charging stations, which use this metallic alloy in their construction.

“Estimates suggest that, in the next three years, there will be around 10 thousand charging stations for electric cars in Brazil, with various renewable energy sources. Considering photovoltaic systems as a clean alternative for energy generation, stainless steel is also present in structures and capture plates, demonstrating a strong application trend”, adds Ledo.

Krominox continues to expand its production capacity to meet promising steel demand in Brazil

Therefore, the Krominox, one of the largest manufacturers of stainless steel tubes and solutions, continues to expand its production capacity to efficiently meet the demands of the automotive industry. With a complete portfolio that includes tubes of different gauges and longitudinal seam lamination, the company stands out in customization to meet the specific needs of each sector and project.

With more than 25 years in the steel market, Krominox is one of the main Brazilian companies specialized in the manufacture of stainless steel tubes and solutions. The company has a strong presence in the sugar and alcohol sector and leads in the paper and cellulose segment, demonstrating its expertise and quality in the manufacture of customizable tubes. A Krominox it also provides solutions for the automotive, food, sanitation and treatment, pharmaceutical, chemical and petrochemical, mining, among others.

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Flavia Marinho

Flavia Marinho is a Production Engineer with a postgraduate degree in Electrical and Automation Engineering, with extensive experience in the onshore and offshore shipbuilding industry. In recent years, she has dedicated herself to writing articles for news websites in the areas of industry, oil and gas, energy, shipbuilding, geopolitics, jobs and courses, with more than 7 thousand articles published. Contact us to suggest an agenda, advertise job vacancies or advertise on our portal.

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