Forging a sustainable future: China-Latin America NEV cooperation boosts green initiatives

In recent years, China and Latin American countries have advanced their collaboration in new energy vehicles (NEVs), accelerating the region's shift toward sustainable energy. From electric buses to lithium battery investments, these efforts are driving clean energy initiatives across Latin America.

A key example of this partnership is in Brazil, where Chinese automaker BYD and the government of the state of Bahia announced the establishment of a major manufacturing complex last year. Comprising three plants, the facility focuses on producing electric buses, trucks, passenger vehicles and lithium iron phosphate batteries, with an annual capacity of 150,000 units, including electric and plug-in hybrid models, to boost Brazil's renewable transport sector.

The Chinese automaker began its journey in Brazil over a decade ago, opening an office in Sao Paulo in 2013, followed by an assembly plant for electric buses and lithium iron phosphate batteries in Campinas by 2015. Since then, BYD has established additional facilities producing electric bus chassis, solar panels and batteries across Brazil, becoming a major force in the country's public transport electrification.

Brazil's "Green Line" rapid transit system in Sao Jose dos Campos exemplifies this trend. Introduced in late 2021, the articulated electric buses produced by BYD along this line have become a popular commuter choice. These buses offer a quieter, more comfortable ride with amenities like USB charging ports. By reducing emissions, they are helping to improve air quality and promote sustainable urban development across the region.

Brazil's NEV market has grown rapidly, becoming the largest overseas destination for China-made new energy vehicles. In April 2024, NEV sales in Brazil exceeded 15,000 units, marking a 217 percent year-on-year increase.

Given the differences in road conditions between Brazil and China, BYD made over 100 technical modifications to its bus designs, tailoring them to better meet local demands. This adaptation process underscores the importance of customizing solutions to fit Brazil's infrastructure, ensuring efficient operation and longevity.

Other Chinese automakers like Great Wall Motors and Chery have also adapted their strategies to local markets and leveraged Brazil's resources to create sustainable, market-appropriate NEV solutions. For instance, Brazil is one of the world's largest and most advanced producers of alcohol fuel, making plug-in alcohol fuel hybrid vehicles an ideal way to balance environmental protection and performance.

Chinese companies are making strides in supporting sustainable energy infrastructure across Latin America. In Argentina, which boasts some of the world's largest lithium reserves, these companies are investing in NEV infrastructure to promote long-term lithium market growth. 

In March 2024, Ganfeng Lithium acquired a 15 percent stake in Argentina's Pastos Grandes lithium project, bolstering local resources and providing essential capital for development. A report by the Stockholm-based Institute for Security and Development Policy in August noted, "This move illustrates the willingness of Chinese companies to support the long-term development of Argentina's lithium market."

In Chile, similar cooperation is evident as Chinese-manufactured electric buses are rolled out in cities like Rancagua and Antofagasta. In May 2024, a batch of electric city buses from Zhongtong Bus Holding was delivered to Rancagua, an initiative personally endorsed by President Gabriel Boric as a vital step toward cleaner air and improved urban mobility.

In 2023, 40 new electric buses were deployed in the northern city of Antofagasta, marking another milestone in Chile's drive to electrify its public transportation network. Chile has set targets for electrification, aiming to convert all public transportation buses and most private vehicles by 2050.

Beyond vehicles, Chinese companies have played an important role in Latin America's renewable energy infrastructure. Brazil's Marangatu Solar Complex, invested in by China's State Power Investment Corporation (SPIC), began operations in June 2024. This solar project will power approximately 550,000 homes annually, significantly advancing Brazil's renewable energy capabilities.

The collaboration between China and Latin America in NEVs and renewable energy reflects a shared commitment to a sustainable future. By promoting NEVs and expanding renewable infrastructure, both sides are taking meaningful steps to reduce carbon emissions, improve urban living conditions, and contribute to a global shift toward cleaner energy.