Oxis Energy and the Minas Gerais Development Company Codemge aim to have a 200MWh lithium-sulfur cell manufacturing plant operating in Brazil within three years after leasing a plant from Mercedes Benz Brazil (MBB).
The UK firm has signed a 15-year-lease agreement to take possession of a plant located at the MBB manufacturing site in Juiz de Fora, in the state of Minas Gerais, in southeast Brazil.
Nordika Pharmaceutical of Brazil will undertake the design and engineering associated with the plant and machinery layout, with upgrading of the site due to begin immediately with an investment in excess of $50 million.
The company aims to have the fully digitalised plant commissioned and operating by 2023 and developed into a centre of excellence two years later.
Phase 1 will be to lease circa 20,000m2 to enable the production of five million lithium sulfur cells per annum with the option to extend and double the estate and cell capacity.
Oxis will market its technology for a range of applications including: aviation, defence, heavy electric vehicles, light commercial vehicles and large marine vessels.
Huw Hampson-Jones, CEO Oxis Energy, said: “Our aim is to aid the Brazilian Government to eliminate all 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.”