Chinese automaker and battery manufacturer BYD has announced plans to expand its battery assembly operations in Brazil. The initiative forms part of the company's strategy to increase the local content of vehicles produced in the country to 50 per cent. BYD also intends to assemble stationary battery energy storage systems in Brazil.The BYD Dolphin Mini is currently Brazil's best-selling carImage: BYDSince last summer, BYD has been producing the battery-electric Dolphin Mini at its new plant in Camaçari, located in the Brazilian state of Bahia. In Europe, this model is sold as the Dolphin Surf, while in China, it is known as the Seagull. The factory initially operated using the SKD (Semi Knocked-Down) process, which involves importing vehicles in large assemblies and conducting final assembly in Camaçari.As the preferential import tariffs for these SKD kits in Brazil expired at the end of January 2026, BYD faces significant pressure to increase its local production depth. The company has already announced plans to transition to more complex manufacturing stages, such as welding, painting, and stamping, from the second half of 2026.Against this backdrop, BYD’s recent announcement to expand battery assembly in Brazil is particularly timely. This initiative does not involve battery cell production, which BYD will continue to handle in China for the electric vehicles manufactured in Brazil. Instead, it focuses on assembling battery cells into modules and packs.BYD aims to achieve a local content share of 50 per cent in the value chain of its Brazil-produced vehicles by early 2027. This was confirmed by Alexandre Baldy, Senior Vice President of BYD Brazil, in a recent interview. “We are localising,” Baldy said, “so that we can truly become a Brazilian manufacturer. The battery is one more item, an important component.”BYD’s ambition to become the best-selling car brand in Brazil by 2030 underscores the importance of strong local value creation. This strategy is not only crucial for mitigating import tariffs on vehicles, SKD, and CKD (Completely Knocked-Down) kits but also for enhancing the company’s image and positioning as a local employer.The expansion of battery assembly for electric vehicles is part of a broader plan to invest 5.5 billion reais (approximately 930 million euros) in the new automotive plant in Camaçari. Additionally, BYD plans to invest between 50 and 60 million reais in expanding a bus battery production line at its facility in Manaus.The company also intends to establish a production line for stationary battery energy storage systems (BESS) in Brazil. However, no decision has yet been made regarding the location. The BESS production line could either be set up alongside the bus battery manufacturing in Manaus or at a new site. BYD estimates the investment required for this project at 500 million reais (approximately 84.7 million euros).msn.com