Highlights
- BYD is aggressively expanding its electric vehicle manufacturing and market presence across South America.
- Significant investments have been made in:
- Brazil
- Chile
- Colombia
- There is emerging interest in Peru.
- The company is leveraging South America’s rich mineral resources such as:
- Lithium
- Copper
- BYD is creating local jobs and supporting regional electrification efforts in public transportation.
- BYD’s strategic approach aligns with China’s broader goals:
- Securing global markets
- Establishing local production
- Positioning itself as a leader in green technology and electric mobility
Peru is positioning itself as a potential hub for BYD’s electric vehicle (EV) manufacturing in South America. In June 2024, President Dina Boluarte met with BYD executives and invited the company to build an auto assembly plant on Peru’s Pacific coast as reported (opens in a new tab) by Investing.com She offered BYD significant incentives, noting that a factory could be located near the Chinese-built Chancay port (opens in a new tab) (opened late 2024) to streamline exports. Boluarte announced plans for a new industrial park in either Chancay or Arequipa to host EV assembly, stating “in either of those places, that’s where the vehicle assembly industry could be set up” reports ET Energy World.
Why is this research relevant for Rare Earth Exchanges (REEx)? As this media has reported China has implemented a three phased strategy to enable global ascendancy. Built on the rare earth element supply chain monopoly, phase 2 of this plan features massive market capture in downstream sectors from green energy to electric vehicles. The last and final stage over the next decade involves an oversight of emerging global currency domination.
But back to Peru and South America, electric vehicles, namely BYD,
Emphasizing Peru’s rich mineral resources, Boluarte argued that instead of China merely importing Peru’s copper and lithium, BYD should come “to Peru to set up their assembly industry.”
To sweeten the deal, the government indicated it would offer zero tariffs and other incentives to attract BYD’s investment. As part of broader talks, Peru is also weighing an agreement with China to electrify the nation’s public transportation fleet within four years.
Deeping Engagement
Peru’s ministers have actively engaged BYD to support these goals. Raúl Pérez Reyes (opens in a new tab), the Minister of Transportation and Communications, led a delegation to China in mid-2024 and met with BYD – the “largest producer of electric vehicles in the world, “according to America Economia (opens in a new tab). The aim is to discuss financing for new EV fleets. He revealed plans for a bilateral agreement in which China would help fund the replacement of Peru’s public transit vehicles (from taxis to 25-seat minibuses) with electric models. The aim is to sign this agreement by the APEC summit and then, over the next 3–4 years, convert a significant number of Lima’s taxis and 20,000 minibuses (“combis”) to electric cites America Economia (opens in a new tab).
To facilitate adoption, Peru is drafting legislation – in coordination with its finance ministry and Congress – to eliminate import taxes on EVs used for public transport (including electric taxis) as reported (opens in a new tab) last year.
Financing tools were on the table as well: “We have expressed our interest in putting together a financing package for the acquisition of electric cars to renew the taxi fleet,” Pérez Reyes noted in the media cited above.
BYD is expected to be a key partner in this transition; a follow-up meeting with BYD was “planned… to see how this program could be implemented”, underscoring BYD’s role in advising and possibly supplying vehicles for Peru’s electrification drive.
Commercialization in Peru
On the commercial front, BYD has already begun establishing its presence in Peru’s automotive market. The company entered Peru via a partnership with local distributor Motorysa, and in April 2025, it opened its first BYD-branded flagship showroom in Lima, cites a report (opens in a new tab).
This 1,000 m² store in the La Molina district showcases BYD’s models and offers test drives and after-sales service, signaling a “stepped-up effort” to expand in the country. BYD used the occasion to launch the Yuan Up compact electric SUV in Peru and highlighted that its sales network already spans key Lima shopping districts. As of early 2025, BYD planned to open 6–7 stores across Peru within the year to reach more consumers.
The company’s initial model lineup – including the BYD Song Pro, Tang SUV, Yuan Up, Seal sedan, and Shark sedan – was introduced in late 2024 cnevpost.com (opens in a new tab), covering a range from electric SUVs to sedans. These moves come alongside high-level signals of deeper investment: Peru’s foreign minister, after visiting China, publicly stated in July 2024 that BYD “could potentially build an assembly plant in Peru,” just as it has done in Mexico and Brazil, cites CNEVPost (opens in a new tab).
While BYD has not yet confirmed a factory in Peru, the combination of government incentives, policy reforms, and BYD’s market entry groundwork suggests that Peru could soon host BYD’s next overseas assembly plant.
BYD’s Operational Footprint Across South America
REEx reviewed past and any ongoing BYD activity in South America.
Brazil: Brazil has become BYD’s largest base in the region, reflecting a mix of early investment and recent expansion. BYD entered Brazil in 2015 by opening an assembly plant in Campinas (São Paulo state) to produce 100% electric bus chassis, as reported (opens in a new tab) by the electric vehicle venture in 2023.
It later added a lithium iron phosphate battery pack assembly plant in Manaus (Amazonas) to localize battery production according to one account (opens in a new tab).
In 2023, BYD significantly ramped up its commitment by acquiring Ford’s former auto manufacturing complex in Camaçari, Bahia. The company is investing about 3 billion reais (~$580–$600 million) to transform this site into an EV production hub, with construction officially starting in March 2024 (opens in a new tab).
According to a report in Sustainable Bus, BYD plans to build three factories at the Bahia complex: one to make electric bus and truck chassis, another to assemble electric and hybrid passenger vehicles, and a third to process key components (likely batteries or drivetrains) for export.
According to BYD, the Camaçari facilities (opens in a new tab) are expected to begin operation by late 2024 and ramp up to an annual output of 150,000 vehicles. This project will create an estimated 5,000 direct jobs in Brazil’s northeast or at least that’s the promise.
Importantly, it also secures BYD a long-term manufacturing base in Mercosur, allowing BYD to eventually supply all Brazilian states and other Latin American countries tariff-free from Brazil, reports Fundacion and Andres Bello (opens in a new tab).
According to Stella Li, BYD’s Executive Vice President, “these new factories in Bahia will bring innovation… allowing the introduction and acceleration of electromobility in the country.”
The Bahia hub will initially produce models tailored to the local market, including the BYD Dolphin (a compact hatchback EV), the Song Plus (SUV, offered as a plug-in hybrid), and the Yuan Plus (a compact electric crossover), as well as a new “Dolphin Mini” city car. BYD’s aggressive expansion comes as it already leads Brazil’s EV market by sales. In 2023, BYD sold 17,943 new energy vehicles in Brazil.
Making it the country’s top seller of plug-in light vehicles. Its Song Plus DM-i (a dual-mode PHEV) and Dolphin EV were among the year’s best-selling electrified models.
Notably, the Dolphin, introduced in mid–2023, quickly gained popularity, with over 6,800 units sold in six months. The model was so well received that it became “the most-awarded electric car in Brazil in 2023,” earning ten automotive awards in its first half-year on the market carnewschina.com (opens in a new tab). To support surging demand, BYD is rapidly scaling up its retail network in Brazil, aiming for 250 dealerships by the end of 2024 (up from 100 in 2023).
By localizing manufacturing in Bahia, BYD will also gain exemption from Brazil’s EV import duties, preserving its price advantage as tariffs on imported EVs begin to rise. In sum, Brazil now hosts BYD’s most comprehensive overseas operation – from buses and batteries to consumer EVs – anchoring the company’s South American strategy.
Chile
Chile has been a focal point for BYD’s transit electrification and battery supply chain efforts. BYD is a dominant player in Chile’s electric bus sector, primarily through deployments in Santiago’s capital.
By mid-2020, BYD had 455 electric buses in operation in Chile, about 65% of the country’s e-bus fleet according to bydglobal.com (opens in a new tab).
Santiago’s Metbus company operates a large portion of these BYD buses as part of the RED municipal transit system, making Santiago one of the largest electric bus fleets outside China. Tamara Berríos, BYD’s country manager in Chile, noted that expanding the electric bus fleet “will bring citizens more quality trips while improving Santiago’s air quality,” reiterating BYD’s commitment to Chile’s clean transport goals reports BYD (opens in a new tab).
Beyond vehicles, Chile attracted BYD with its rich lithium resources. In early 2022, Chile’s economic development agency (CORFO) awarded BYD a quota in a lithium tender, paired with an incentive for local value-added. BYD proposed a $290 million plant in Chile’s Antofagasta region to produce 50,000 tons per year of lithium iron phosphate (LFP) cathode material for EV batteries, cites CNEVPOST (opens in a new tab).
This plant would have integrated Chilean lithium into BYD’s battery supply chain and marked one of the first major Chinese battery investments in the Americas.
However, the economics became unfavorable due to a sharp decline in global lithium prices through 2023. BYD filed to withdraw from the Chilean project in January 2025, and CORFO confirmed the LFP plant plans were halted as “plunging lithium prices” hit these investments—see CNEVPOST (opens in a new tab).
Despite this setback, Chile remains a key market for BYD’s products. The firm has been selling its passenger EVs locally – by 2023, BYD reportedly held about 19% of Chile’s electric car market share, largely thanks to its affordable models (the Dolphin and a smaller city EV)—see CleanTechnica (opens in a new tab).
Chile’s push to electrify all public transport by 2040 and its ongoing lithium partnership talks with China ensure BYD will continue playing a significant role in the country, whether through vehicle sales or future production projects, should market conditions improve.
Colombia
BYD has built a strong reputation in Colombia by delivering electric buses and collaborating on local assembly. In Bogotá, BYD achieved a landmark deployment: 1,002 BYD electric buses were ordered in a single tender in 2020, making BYD the principal supplier for the city’s TransMilenio BRT system, according to Sustainable Bus (opens in a new tab).
As of 2021, BYD had accumulated 1,550 orders for pure electric buses in Colombia, the largest e-bus rollout in the Americas, according to Sustainable Bus (opens in a new tab).
These buses, which operate in Bogotá and other cities, significantly reduce noise and emissions in public transport. BYD partnered with Japan’s Hino Motors to further localize production and assemble electric bus chassis in Colombia. In August 2023, the first BYD 12-meter electric bus chassis was assembled at Hino’s plant in Cota, Colombia.
This pilot initiative aims to transfer technology and know-how to Colombian workers. “As BYD, we believe we should not only provide the technology but also transfer knowledge,” said Lara Zhang, BYD’s regional manager in Colombia, cited in LATAM Mobility (opens in a new tab).
BYD sees Colombia as fertile ground for deeper manufacturing: “We have found the right ground in the country… we will seek to make important parts of the bodywork, and later on, [achieve] much greater [local] assembly,” Zhang noted.
The goal is to eventually assemble complete electric buses in Colombia, leveraging the country’s existing coachbuilding industry (Colombia already builds bodies for BYD bus chassis). BYD’s collaboration with local firms and its supply of over 1,500 e-buses have given it a strong foothold as Colombia’s cities pursue cleaner transit. The company also sells electric cars in Colombia (for example, the BYD Yuan crossover is used in a Bogotá taxi pilot), but its impact is most visible in the public transport sector. With Colombia’s government supportive of electric mobility and local manufacturing, BYD’s partnerships could evolve into a full-fledged assembly plant if demand continues to grow.
Argentina
Argentina has engaged in on-and-off dialogues with BYD for over a decade, driven by the country’s interest in EVs and its vast lithium reserves. BYD established a local subsidiary (CTS Auto S.A.) and signed an MOU with Argentina’s government several years ago. In 2017, Argentina granted BYD “terminal automaker” status, allowing local production, and an agreement was signed (opens in a new tab) to build an EV plant in the province of Salta.
The plan envisioned a $100 million investment to produce electric buses (and possibly electric cars like taxis) at Salta’s General Güemes industrial park, creating 600 jobs. Salta’s appeal was its proximity to lithium deposits and an enthusiastic provincial government. BYD’s Stella Li and Salta’s governor, Juan Manuel Urtubey, even signed a letter of intent in 2017 to move forward with the factory.
However, shifting political winds and economic challenges intervened. By 2018, Argentina’s national government opened a limited window for duty-free imports of electric buses (to encourage quick adoption), on the condition that importers localize production within two years, as cited by Info Negocios (opens in a new tab).
This policy change, plus lobbying at the federal level, led BYD to reconsider its site selection. The Salta project cooled, and insiders suggested BYD was leaning towards Argentina’s more populous Buenos Aires province for any future plant.
Indeed, as of 2023, BYD had not yet built a factory in Argentina. Instead, it supplied vehicles via imports – for example, BYD won a government tender (opens in a new tab) to provide 50 electric buses for Argentina’s Metrobus in 2017.
Those buses were deployed as pilots across various cities. Today, Argentina’s policy environment is shifting again.
In early 2025, the new Argentine government under President Javier Milei slashed import tariffs on fully electric and hybrid vehicles to 0%, aiming to make EVs more affordable cites Rest of World (opens in a new tab).
Up to 50,000 EVs per year can now be imported tariff-free. This move is expected to “open the floodgates” for Chinese EV brands like BYD in Argentina. This could undercut local offerings. BYD has signaled interest in capitalizing on this opportunity – it is expanding its dealer network and marketing in Argentina, confident that its low-cost models will attract Argentine consumers who are long-priced out of EVs. However, the policy has drawn criticism from Argentine vehicle manufacturers; the CEO of local EV startup Coradir warned that an unchecked influx of cheap Chinese EVs could “wipe out” nascent domestic production.
It remains to be seen how BYD balances importing vehicles versus revisiting local manufacturing in Argentina. Argentina’s rich lithium (and a recent agreement with China to jointly explore lithium value chains) could entice BYD to establish battery production or assembly there in the future. For now, Argentina stands as a major prospective market for BYD, newly accessible due to favorable import rules but still without a BYD factory on the ground.
Uruguay and Others
Uruguay, a smaller market, has nevertheless embraced BYD in its modernization of public transit. In September 2023, BYD delivered 100 K9 electric buses to Montevideo’s public transport company (CUTCSA), one of the largest single batches of e-buses in Uruguay’s history, according to BYD.
These 12-meter buses, built in China, will help replace older diesel buses in the capital. Uruguay’s government has worked with BYD and financiers to introduce electric buses and taxis as part of its national decarbonization strategy. BYD does not yet have manufacturing in Uruguay, but its vehicles serve as high-profile demonstrations of EV viability in the country. Elsewhere in South America, BYD’s footprint is growing through vehicle imports and pilot projects.
In Ecuador, BYD has supplied a fleet of electric taxis in cities like Loja and electric buses in Guayaquil through partnerships with local authorities. More recently, BYD entered Bolivia and Paraguay, offering electric SUVs and vans via local distributors and showcasing electric buses at trade fairs.
These markets are nascent, but BYD’s early entry and reputation earned in larger neighbors give it a first-mover advantage. As South America’s smaller countries formulate EV policy incentives, BYD is well-positioned to provide turn-key solutions (from vehicles to charging infrastructure), often backed by Chinese green financing programs. This pan-regional presence means BYD is actively shaping the EV adoption curve across South America, not just in the largest economies.
Market Share and Model Performance in South America
The surge of Chinese EV makers in Latin America – spearheaded by BYD – is reshaping the region’s automotive landscape. BYD and Great Wall Motor already dominate EV sales in Brazil, the world’s sixth-largest auto market cites Newswav (opens in a new tab).
Thanks to a lineup of affordable EVs and plug-in hybrids, BYD ended 2023 as Brazil’s best-selling NEV (New Energy Vehicle) brand, capturing an estimated ~35% of all battery-electric and plug-in hybrid light vehicle sales reported (opens in a new tab) Car News China.
BYD’s sales in Brazil nearly doubled in 2023, mirroring a 91% jump in Brazil’s overall EV sales from the prior year.
The BYD Song Plus DM-i – a mid-size SUV with a fuel-efficient plug-in hybrid system – became one of the top-selling electrified vehicles in Brazil, appealing to consumers transitioning from gasoline SUVs. Similarly, BYD’s pure-electric models gained traction: the compact Dolphin EV’s combination of price (R$150,000 or <$30k) and range (400 km) proved very attractive, making it the most popular electric car in Brazil by late 2023 again reported in Care News China (opens in a new tab).
It even won Car of the Year accolades in the EV category, as noted, securing 10 major industry awards in Brazil within months of launch. BYD’s strategy of offering different models (from entry-level hatchbacks to luxury SUVs like the Tang) has allowed it to serve multiple customer segments and outcompete rivals like Renault, Nissan, and even Tesla in volume. Notably, Tesla’s presence in South America is minimal outside of a few high-end units, allowing BYD to establish its brand unchallenged in the mass-market EV segment.
In other markets, BYD has similarly vaulted to leadership. In Colombia, BYD was the best-selling EV brand in 2022 and 2023, leveraging its strong commercial vehicle presence to build trust in its passenger cars. BYD’s electric SUVs (such as the Yuan Pro and Tang EV) led Colombia’s small EV market, and the company has delivered electric trucks for urban cargo fleets as well.
In Chile, BYD’s early entry with models like the Han EV sedan and Tang helped it achieve nearly one-fifth of EV market share, as reported by CleanTechnica (opens in a new tab).
This was second only to Tesla in high-end sales, but far ahead in mainstream segments. BYD has tailored its offerings to local needs – for instance, deploying extra battery thermal management for the Altiplano (high altitude) conditions in Bolivia and Peru, or offering right-sized EVs for Uruguay’s compact urban areas. The company also benefits from its vertical integration: BYD makes its own batteries (the Blade Battery technology), which ensures it can supply products despite global battery shortages. This supply chain strength meant BYD could deliver on large orders (like hundreds of buses or thousands of cars) faster than competitors.
Supply chain integration extends to after-sales and charging infrastructure. BYD often partners with local power companies (e.g., Enel in Chile, EPM in Colombia) to support charging stations for its bus and taxi projects reported (opens in a new tab) BYD.
It also provides training for maintenance technicians through its local distributors. The growing volume of BYD vehicles on South American roads has prompted BYD to increase investment in service centers and parts warehouses in the region. For example, BYD is establishing parts distribution hubs in Brazil and possibly a regional center in Panama to streamline logistics. These efforts alleviate one of the traditional consumer concerns with new brands – service and support – thus reinforcing BYD’s market position.
One notable aspect of BYD’s performance is how it’s driving EV adoption in sectors beyond private cars. BYD’s electric buses and taxis often serve as many people per day as dozens of private EVs would. Every BYD electric bus put into service in Bogotá or Santiago reduces diesel consumption and showcases EV reliability to thousands of daily commuters. This creates a knock-on effect: public exposure to BYD’s EV technology increases acceptance and interest in electric cars for personal use. In many South American cities, a BYD bus or BYD-branded taxi is the first encounter the public has with an electric vehicle, effectively making BYD an ambassador of EV technology. This broad-based approach – attacking the market from both the top-down (government fleet contracts) and bottom-up (consumer car sales) – has yielded BYD a commanding lead in South America’s EV race.
Implications for Rare Earth Supply and China’s Global EV Strategy
BYD’s expansion in South America carries significant implications for critical minerals and rare earth supply chains and for China’s global EV ambitions. EVs and batteries are resource-intensive products: each electric car contains large amounts of lithium (in its battery), copper (in cables and motors), and often rare earth elements like neodymium in its motor magnets.
South America’s resource wealth is therefore a strategic draw. Peru’s president highlighted that synergy, suggesting BYD could use “copper and lithium from Peru” in local production cited (opens in a new tab) Investing.com.
Indeed, South America is a global treasure trove for EV materials – the region holds roughly 60% of the world’s known lithium reserves (Chile, Argentina, Bolivia) and is a top source of copper (Chile and Peru together provide ~40% of global copper output).
REEx has suggested firms such as Brazilian Rare Earths (BRE) show great promise.
By establishing factories or assembly plants in these countries, BYD could gain more direct access to raw materials while also helping those nations move up the value chain beyond just exporting ores. For example, a BYD assembly plant in Peru might source Peruvian copper for electric motors and wiring, creating a local demand for refined copper products. It could also eventually tap into any lithium mining in Peru (which has smaller deposits under exploration) to feed a battery pack facility. Such integration would increase BYD’s control over its supply chain and potentially lower costs (through tariff-free material access and reduced shipping).
However, BYD’s regional footprint also underscores the continuing reliance on China for certain components, particularly rare earth magnets and battery chemicals. South America has almost no domestic production of neodymium, dysprosium, or other rare earths needed for EV motors; China dominates these supply chains. BYD’s electric motors will likely use magnets manufactured in China (or with Chinese rare earths), even if the car is assembled in Brazil or Peru. In batteries, while lithium is mined in South America, the processing of lithium into battery-grade chemicals is still largely done in Asia (China, South Korea, etc.).
BYD’s cancelled Chilean cathode plant illustrated the challenge: transforming local minerals into battery components requires stable market conditions and significant investment.
The withdrawal of that project in 2025 due to low prices suggests that deeper local processing may lag without economic viability or strong government support. That said, REEx suggests Chile’s initiative to offer preferential lithium prices in exchange for local battery plants could be a model other countries adopt to entice players like BYD back when market conditions improve.
BYD or its partners may revive plans for lithium refineries or cathode/anode material factories in Latin America, as EV demand (and thus lithium prices) is expected to rise long-term.
From a geopolitical perspective, BYD’s South American foray aligns with China’s broader strategy of securing markets and resources in the Global South as traditional Western markets become more challenging. Chinese EV makers have faced tariffs and political pushback in the US and Europe, but countries like Brazil have been far more welcoming. This, of course, has intensified since the onset of Trump 2.0 and the trade war.
Brazil, Argentina, Chile, and others have trade agreements with China or are part of China’s Belt and Road Initiative, creating a favorable environment for Chinese firms. By investing in local production, BYD not only sidesteps import tariffs but also ingratiates itself with governments by creating jobs and supporting industrialization.
This approach is effectively “the blueprint” that China’s manufacturing giants may use elsewhere: to “invest, produce and hire in overseas markets instead of just shipping goods there,” as cited in Newswav (opens in a new tab).
BYD’s new factories in Brazil and (potentially) other countries exemplify this shift. They bolster China’s image as an investor in Latin American development, even as they serve China’s interest in expanding EV export volumes. It’s a symbiotic arrangement: Latin America gets technology and investment; China’s EV sector gains market access and influence.
The growth of BYD’s South American operations will likely boost regional demand for battery minerals and related materials, reinforcing trade ties with China. For instance, more EV assembly in Brazil could increase Brazil’s imports of lithium (for batteries) and rare earth magnet materials – likely sourced from China, given its near-monopoly. This could deepen China’s role as the upstream supplier for parts, even as final assembly happens in South America. Conversely, it may also spur Latin American countries to develop their processing capabilities to capture more value (e.g., Argentina pushing for lithium hydroxide plants, or Brazil exploring rare earth mining in Amazonas). In either case, BYD’s presence catalyzes discussions on resource utilization in the EV age.
There are also implications for local competitors and industries. BYD’s aggressive strategy puts pressure on South American automakers and governments. Domestic companies (like Argentina’s small EV makers or Brazil’s traditional OEMs) now face a formidable competitor with scale and cost advantages. We may see alliances or joint ventures form in response, for example, a local manufacturer partnering with BYD to produce components, or governments creating EV supply chain consortia to ensure local firms aren’t entirely displaced. Additionally, BYD’s deals often come with financing from Chinese banks or funds, which could increase these countries’ financial ties to China. Policymakers will need to manage this carefully, leveraging BYD’s investments to build domestic capacity (as Colombia is attempting with bus assembly) rather than just opening markets to imports.
In the big picture, BYD’s South American expansion underscores how China’s global EV rollout is intertwined with resource strategy. BYD, backed by China’s massive domestic market and supply chain, can export affordable EVs and set up plants overseas in a way Western rivals currently find hard to match.
This helps secure long-term demand for China’s battery industries and even its rare earth magnet producers. It also aligns with China’s aim to be a leader in green technology worldwide. For South America, the arrival of companies like BYD accelerates the transition to electric mobility and could kick-start local EV production ecosystems—a significant shift for a region long dependent on imported automotive technology.
As BYD and its Chinese peers deepen their footprint, South America’s role in the “electric revolution” will grow, both as a consumer market and as part of the EV supply chain. In turn, this will contribute to increased demand for lithium, copper, and potentially rare earth elements, strengthening the strategic importance of South America’s natural resources in the coming decades. The interplay between BYD’s commercial objectives and the region’s resources and policies will be a key space to watch as the global auto industry enters a new electric era.
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