Raízen and BYD promise electric car charging points – 02/02/2024 – Market

Raízen and Chinese automaker BYD will build electric charging “hubs” in eight Brazilian capitals, as part of a joint project that aims to boost the electric vehicle market that has been gaining traction in the country, the companies told Reuters.

The agreement foresees the installation of 600 fast charging points across the country with the Shell Recharge brand over the next three years, as Raízen seeks to have 25% of this market. The equipment together totals more than 18 megawatts (MW) of installed power, and will be powered by energy from renewable sources supplied by Raízen Power, the group’s electrical energy arm.

The cities of São Paulo (SP), Rio de Janeiro (RJ), Belo Horizonte (MG), Brasília (DF), Curitiba (PR), Florianópolis (SC), Salvador (BA) and Belém (PA) will receive points. chosen based on market growth forecasts and the number of users who demand more top-ups, such as app drivers.

The companies did not inform the value of the contributions involved in the project.

The creation of these “hubs” in important urban centers meets the need for more charging infrastructure to face the expansion of a market that is still small in Brazil, but which shows promise in the view of the two companies.

“Brazil has an (energy) transition that is different from other countries, because it already has a very good solution in the hybrid car, in the ethanol car, but it will come, it will happen”, highlighted the CEO of Raízen, Ricardo Mussa, in conversation with Reuters.

Alexandre Baldy, BYD’s special advisor in Brazil, stated that the agreement comes at a “strategic” moment for the automaker, which rivals Tesla as the world’s largest manufacturer of electric cars and which is expected to start producing in Brazil from this year. , with investments of R$3 billion.

“It will be very important, culturally, to show people that this investment will happen… BYD chose Brazil as the second country in the world to be the one in which it will invest, that it will grow”, said Baldy .

Electric vehicle registrations broke a record last year, according to the ABVE association, totaling almost 94 thousand units. BYD’s sales in the country grew almost 70 times in the year, reaching 18 thousand vehicles, and in January this year the automaker had already sold 4,299 cars.

COMPETITIVE COSTS AND QUALITY

The partnership follows a strategic cooperation agreement signed in 2022 by Shell, one of Raízen’s main shareholders, and BYD to help accelerate the energy transition and improve the charging experience for BYD electric and plug-in hybrid vehicle customers. in the world.

The Brazilian project will rely on experience and learning that companies have already had in other parts of the world, notes Mussa, highlighting that the Shell brand guarantees reliability and quality when recharging, which is essential to preserve the battery and extend the useful life of the car.

Users of BYD vehicles will benefit from using the Shell Recharge network, paying lower prices for the service and obtaining bonuses, for example.

“The fact that we (Raízen) are an integrated company, we will be able to deliver a cost that is always competitive for the end customer. If it is not competitive, we will not have customer loyalty”, highlighted the CEO.

The electromobility market has been gaining importance for Raízen as the Brazilian sugar and ethanol and fuel distribution giant seeks to offer new sustainable solutions to its customers in the context of energy transition.

The company aims to have a 25% market share in the segment and has been making investments in recent years through Raízen Power, such as the purchase of the charging network from the startup Tupinambá.

“For us, being a pioneer is very important. This market is a fundamental part of our growth strategy, it is to provide an option for the customer, whatever it may be, gasoline, ethanol, diesel or electricity”, stated Mussa.