Brazil Battery PPB Proposal Sets Local Manufacturing Targets

Brazil Proposes New Battery Production Framework

On September 3, the Brazilian government opened a 15-day public consultation on a proposed Basic Production Process (PPB) for lithium-ion and other batteries manufactured by companies qualified under the Program to Support the Technological Development of the Semiconductor Industry (PADIS). The Brazil battery PPB proposal establishes a points-based framework intended to measure industrial and technological activities performed domestically. The proposal applies to batteries used in electric and hybrid light- and heavy-duty vehicles, including buses and trucks, as well as battery energy storage system (BESS) applications. The consultation provides an opportunity for stakeholders to review the proposed requirements before the framework is finalized.

Points Requirements Rise Through 2030

The proposed framework assigns points to 13 industrial and technological activities that battery manufacturers could perform in Brazil. Companies would need to achieve at least 313 points during 2026-2027, increasing to 479 points in 2028-2029 and 742 points from 2030 onward. The complete framework provides 1,208 points across the 13 activities, meaning the required threshold would represent an increasingly substantial share of the available score over time. The staged approach gives manufacturers different minimum requirements by implementation period while establishing progressively higher expectations for domestic industrial and technological activity.

Local Cell Manufacturing Carries Highest Weight

Local battery-cell manufacturing receives the highest individual weighting in the proposed system, with 382 points available for the activity. This weighting makes cell production the most significant single contributor toward meeting the required thresholds. PCB processing and electrical testing for the Battery Management System (BMS) receive the next-highest weighting at 129 points. Additional research and development investment can contribute up to 120 points. The allocation indicates that the proposed framework places substantial value on domestic battery-cell production while also recognizing BMS-related processing, testing, and additional R&D investment as important industrial and technological activities.

Proposal Covers Vehicles and Energy Storage

The scope of the proposed PPB extends beyond batteries for passenger vehicles. It covers batteries for electric and hybrid light- and heavy-duty vehicles, including buses and trucks, while also applying to BESS applications. This broad scope means the proposed production framework could affect battery manufacturing activities serving multiple transportation segments and stationary energy-storage applications. For manufacturers operating in Brazil, the points system would therefore need to be considered in relation to the specific industrial and technological activities carried out locally across these battery applications.

Imported Battery Components Remain Unclear

The proposal does not appear to explicitly restrict the use of imported cells, modules, or battery packs. Instead, its stated structure centers on the points assigned to industrial and technological activities performed domestically. That distinction could be important for manufacturers assessing how different combinations of local production, processing, testing, and R&D activities could contribute toward the required thresholds. The consultation period may provide additional clarity on how imported components would interact with the proposed framework and whether any further conditions are introduced before the final PPB takes effect in Brazil.

Battery PPB Points Allocation and Thresholds

The proposed framework combines annual implementation thresholds with activity-specific point allocations. The most heavily weighted activity is local cell manufacturing, while BMS-related processing and testing and additional R&D investment also provide substantial contributions. The following figures summarize the principal thresholds and activity weightings stated in the proposal, providing a direct view of how requirements are scheduled to increase and which activities carry the greatest scoring potential.

Industry Impact & Outlook

The proposed framework could encourage battery manufacturers to increase the amount of industrial and technological activity conducted in Brazil, particularly as the required score rises from 313 points in 2026-2027 to 742 points from 2030. Local cell manufacturing carries the strongest individual weighting, potentially making domestic cell production an important consideration for companies planning their manufacturing strategies, while BMS processing, electrical testing, and R&D provide additional pathways toward compliance. The public consultation will be important for determining whether the proposal changes before implementation and how manufacturers using imported cells, modules, or packs will ultimately be treated.

Frequently Asked Questions

What does the proposed Brazilian battery PPB framework require?
The proposed framework requires qualifying battery manufacturers to achieve minimum points for industrial and technological activities performed domestically in Brazil. The threshold is 313 points for 2026-2027, 479 points for 2028-2029, and 742 points from 2030, out of 1,208 available points across 13 activities. Local battery-cell manufacturing has the highest weighting at 382 points, while PCB processing and BMS electrical testing receive 129 points and additional R&D investment can provide up to 120 points. The proposal also covers batteries for electric and hybrid vehicles and BESS applications.