China’s BYD considering lithium battery plant in Argentina, foreign minister says

Chinese electric vehicle manufacturer BYD is considering establishing a lithium battery plant in Argentina, according to Foreign Minister Pablo Quirno. This potential investment opportunity was discussed during a meeting between Quirno and Stella Li, BYD's executive vice-president. Quirno did not disclose the exact investment amount or the precise location of the factory.

The minister linked this potential venture to Argentina's economic agenda, highlighting the country's efforts to position itself as a platform for projects catering to both the domestic market and exports. Quirno attributed Argentina's progress in attracting investments and mining to the government's policies. To date, BYD has only sold imported cars in Argentina since opening its business there in October last year, with no production plans announced.

The company sold 10,000 vehicles in August, including a Dolphin Mini in Rosario, and currently operates 21 dealerships, primarily in Buenos Aires. BYD's local subsidiary, BYD Auto Argentina SAU, was registered in August last year with a corporate purpose encompassing vehicle manufacturing, battery production, and auto parts. Christian Kimelman, who oversees BYD's Argentine operation, stated that a car factory is not currently on the table, but acknowledged that having a vision in that direction is necessary to lead the sector in the current context.

Most of BYD's supply for Argentina and Mexico is expected to come from its factory in Camacari, Brazil, which opened in October last year with a capacity for 150,000 vehicles annually. In March, Li mentioned that the factory had secured orders for 50,000 cars each from Argentina and Mexico. Vehicles produced in Brazil can enter Argentina with minimal tariffs under a bilateral automotive agreement between the two Mercosur members.

BYD has also continued to ship cars from China on its own vessels, unloading over 5,000 vehicles at the port of Zarate in January. Despite BYD's failed attempt to establish a lithium venture in Chile, where it planned a US$290 million cathode plant, a similar lithium initiative in Argentina would represent a new opportunity for BYD.