Brazil allocates $860 million for batteries under investment program

Brazil’s fifth Eco Invest Brasil auction has earmarked BRL 4.55 billion ($860 million) for batteries and energy storage systems, representing 70% of the BRL 6.5 billion allocated to critical minerals, batteries and electric mobility.

Approved on Oct. 7 by the program’s executive committee, the auction involves BRL 13.2 billion in catalytic capital expected to mobilize BRL 36.75 billion in private funding, for a potential total of BRL 49.95 billion across six strategic value chains.

Santander was selected to manage the critical minerals, batteries and electric mobility allocation. Of its BRL 6.5 billion, BRL 4.5 billion is assigned to innovation funds and BRL 2 billion to corporate credit.

The indicative allocation assigns 70% of this value chain’s funding to batteries and energy storage systems, equivalent to BRL 4.55 billion, or about 9.1% of the auction’s total potential investment.

Across the auction, BRL 9 billion allocated to innovation funds is expected to mobilize BRL 18 billion in private capital. The BRL 4.2 billion corporate credit allocation is expected to attract a further BRL 18.75 billion. The two mechanisms are projected to support BRL 27 billion and BRL 22.95 billion in investment, respectively.

The approved proposals also allocate approximately BRL 249.8 million to research, technological development and technology-based entrepreneurship. Santander’s proposal for the critical minerals, batteries and electric mobility value chain accounts for BRL 32.5 million of that amount.

Santander’s proposal includes an 80% foreign-capital participation rate and a commitment to direct 10.25% of innovation fund investments toward projects developed in cooperation with universities and science, technology and innovation institutions.

Specific recipients of the battery funding have not yet been disclosed, and the current allocation does not establish a dedicated share for stationary storage connected to the electricity sector.

From pv magazine Brazil