Raízen and BYD reach an agreement to advance electric vehicle charging in Brazil.

Reuters - Raízen and Chinese automaker BYD will build electric vehicle charging hubs in eight Brazilian capitals as part of a joint project aimed at boosting the electric vehicle market, which has been gaining traction in the country, the companies told Reuters.

The agreement foresees the installation of 600 fast-charging points across the country under the Shell Recharge brand over the next three years, as Raízen seeks to capture 25% of this market. The equipment together represents more than 18 megawatts (MW) of installed capacity and will be powered by renewable energy supplied by Raízen Power, the group's electricity 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 the points of sale, chosen based on market growth forecasts and the number of users who demand more recharges, such as app drivers.

The companies did not disclose the value of the investments involved in the project.

The creation of these "hubs" in important urban centers addresses the need for more charging infrastructure to cope with the expansion of a market that is still small in Brazil, but which shows promise in the view of both companies.

"Brazil has an energy transition that is different from other countries, because it already has a very good solution in hybrid cars and ethanol-powered cars, but it will come, it will happen," highlighted Raízen CEO Ricardo Mussa in a conversation with Reuters.

Alexandre Baldy, special advisor to BYD 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 is expected to begin production in Brazil this year, with investments of 3 billion reais.

"It will be quite important, culturally, to show people that this investment will happen... BYD chose Brazil as the second country in the world where it will invest and grow," said Baldy.

Registrations of electric vehicles hit a record last year, according to the ABVE association, totaling almost 94 units. BYD's sales in the country grew almost 70 times in the year, reaching 18 vehicles, and in January of this year the automaker has 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's electric and plug-in hybrid vehicle customers worldwide.

The Brazilian project will draw on the experience and lessons that companies have already learned in other parts of the world, notes Mussa, emphasizing that the Shell brand guarantees reliability and quality in recharging, which is essential for preserving the battery and extending the lifespan of the vehicle.

BYD vehicle users will benefit from using the Shell Recharge network, paying lower prices for the service and receiving bonuses, for example.

"The fact that we (Raízen) are an integrated company means that we will always be able to deliver a competitive cost to the end customer. If we are not competitive, we don't have customer loyalty," the CEO emphasized.

The electromobility market has been gaining importance for Raízen as the Brazilian sugar, ethanol, and fuel distribution giant seeks to offer new sustainable solutions to its customers in the context of the 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's about providing an option for the customer, whatever it may be: gasoline, ethanol, diesel, or electricity," Mussa stated.