Chinese manufacturer BYD announced plans to invest up to 500 million reais in the production of battery energy storage systems (BESS) in Brazil, an initiative that could mark a turning point for the sector and reinforce the country's position as one of the most promising markets in Latin America for this technology.
The company is evaluating two options to make the investment: expanding its existing factory in Manaus or building a new industrial plant. The decision will depend on technical, logistical, and regulatory feasibility studies that are currently underway.
"This investment of 500 million reais is the most significant announced for the sector and could become a milestone to strategically consolidate Brazil as a benchmark in the use of stationary batteries," the company stated.
BYD's bid comes at a time when Brazil has finally published the guidelines for its long-awaited first auction for stand-alone BESS projects.
The first call, called LRCAP of 2026 – National Stockpile , will be held on December 2nd and will be exclusively for systems that meet the minimum national content criteria established by the National Bank for Economic and Social Development (BNDES).
While two days later the 2026 LRCAP – Armazenamento will take place, open to projects without nationalization requirements.
The selected projects will have access to 15-year contracts , with supply starting on August 1, 2028. Remuneration will be made through an annual Fixed Payment , paid in 12 monthly installments and updated each year according to the IPCA index.
Furthermore, the sector faces increasing challenges in balancing the expansion of renewables with the absorption capacity of the electricity grid, as nearly 20% of available solar and wind generation went unused in 2025 alone due to system constraints, with estimated losses of 6.5 billion Brazilian reais. Average cuts reached 4,021 MW, a capacity equivalent to a large hydroelectric plant.
An investment awaiting regulatory signals
The project's implementation will be gradual and is still contingent upon the evolution of the Brazilian regulatory framework for energy storage.
Among the factors that will influence the final decision is the Regulatory Ordinance No. 136 of the Ministry of Mines and Energy , considered a key piece to define the rules that will drive the deployment of BESS systems in the country.
The company has not yet confirmed whether the investment will be used exclusively to expand existing capacity in Manaus or whether it will result in the construction of a new industrial facility.
In addition to its impact on the energy sector, the initiative promises to strengthen the Brazilian industrial value chain.
BYD estimates that the first phase of the project could generate between 300 and 400 direct jobs , in addition to increasing the participation of national suppliers in the manufacture of components and equipment related to energy storage.
The strategy follows a global trend that seeks to localize some of the production of clean technologies to reduce costs, strengthen supply chains and accelerate the adoption of advanced energy solutions.