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BorgWarner to assemble battery systems in Brazil

The operation will start in the first quarter of 2023, producing four thousand systems a year

BorgWarner - Marcelo Rezende - sistemas de baterias

By Décio Costa | Translated by Jorge Meditsch

BorgWarner includes Brazil in its battery systems global production, preparing a dedicated operation in its unit in Piracicaba, SP. The activities will start in the first quarter of 2023 to supply commercial vehicle manufacturers. Mercedes-Benz opens the customer list, receiving systems for the eO500U electric urban bus, produced in São Bernardo do Campo, SP.

The operation in the state of São Paulo will be Akasol’s fourth battery systems production unit. The company was acquired by BorgWarner in 2021 and operates two plants in Germany and one in the United States.

To begin the process in the country, the Piracicaba plant will receive the batteries from Germany and complete the package assembly with the energy management and recharge modules here.

BorgWarner does not reveal the investment amount and the number of dedicated employees. But the company says the unit begins with a capacity to produce four thousand battery systems a year.

“Each bus receives on average four battery packs, meaning supplying about one thousand vehicles a year”, tells Marcelo Rezende, BorgWarner’s battery systems general director for Brazil.

Although most of the components are imported, Rezende told that to ensure financing from Finame, a BNDES line for commercial vehicles, a part of the system has been nationalized, “especially mechanical parts and cables. It is an initial supplying basis that will evolve over time.”

Besides Mercedes-Benz as a sure customer, the executive said he is talking to other manufacturers. “Battery systems supply in the country enable manufacturers to advance their plans.”

According to BorgWarner, the expansion of commercial vehicle electrification will be fast, not just in international markets but also in Brazil. Up to 2030, the company expects to get about 45% of its revenue from battery systems.

This year, the area’s income was US$ 2.9 billion, over the US$ 2.5 billion estimated for 2025. In the Brazilian market, the company foresees a 400% growth in the electrified commercial vehicle market in the next five years.