Oxfordshire-based Oxis Energy and the Minas Gerais Development Company (CODEMGE) have signed a 15-year lease agreement with Mercedes Benz Brazil (MBB) to take possession of a plant located at the latter’s manufacturing site in Juiz de Fora to manufacture Lithium Sulfur (LI-S) cells and battery systems.
Oxis Energy CEO Huw Hampson-Jones said: ”Our aim is to aid the Brazilian government to eliminate all ICE (internal combustion engine) buses over a period of 25 years, equating to the production of over four billion cells. Brazil has the third largest bus market in the world, with 700,000 ICE buses currently in circulation.”
The factory will be up and running within five years and will create hundreds of mainly high-skill jobs over the next ten years with Oxis having access to the expertise and innovation of students at the universities of Juiz de Fora.
Reflecting its collaborative success with universities in the UK and Europe, Oxis is actively seeking collaborations with Brazilian universities.
Upgrading the site will begin immediately and will involve an investment in excess of $50 million. The target is to have the fully digitalised plant commissioned and operational by 2023.
Phase one will be to lease circa 20,000m
2 to enable the production of five million Lithium Sulfur (Li-S) cells per annum with the option to extend and double the estate and cell capacity.
Oxis and CODEMGE are already engaged with several Brazilian blue chip companies regarding using its Li-S cells for the electrification of regional aircraft, buses and trucks and they are also collaborating with Brazilian aircraft manufacturers to build electric aircraft in the country. CODEMGE is also supporting Oxis Energy in its work with numerous US, European and Japanese aircraft producers.