Brazil’s electric vehicle sales surged 91% year-over-year in 2025, making it the fastest-growing major EV market in Latin America. But behind the sales figures lies a widening gap: the country has virtually no commercial-scale infrastructure for recycling the lithium-ion batteries that will begin reaching end-of-life within the next three to five years. Industry observers and government officials are now raising alarms about a looming waste management challenge that could undermine Brazil’s clean transportation ambitions.
The numbers underscore the urgency. Brazil registered more than 180,000 new electrified vehicles in 2025, including battery electric and plug-in hybrid models, bringing the total EV fleet to 420,000. With typical EV battery warranties spanning 8–10 years, the first significant wave of end-of-life batteries is expected to arrive between 2029 and 2032. Yet the country currently has no dedicated EV battery recycling facility operating at commercial scale.
Regulatory Gaps and Policy Uncertainty
Brazil’s National Solid Waste Policy (PNRS), enacted in 2010, establishes extended producer responsibility for batteries, but it was written primarily with lead-acid batteries in mind. The policy’s provisions do not specifically address lithium-ion chemistry, and implementing regulations for EV batteries remain under development at CONAMA (the National Environment Council).
A draft resolution circulated in mid-2025 proposed collection targets and recycler certification requirements, but stakeholders reported significant gaps in the framework. The proposal did not set minimum material recovery rates, did not address second-life battery applications, and lacked clarity on financial responsibility for collection logistics in a country spanning 8.5 million square kilometers.
“Brazil has the opportunity to build a battery recycling ecosystem from scratch, learning from what works in Europe and Asia. But the window is narrowing. Without clear regulations and investment incentives in the next 12–18 months, we risk creating a stockpiling problem that becomes far more expensive to solve later.” — Prof. André Ferreira, Coordinator of Sustainable Minerals Research, University of São Paulo
Who Is Moving First
A handful of private-sector players have begun positioning themselves in the Brazilian market. Reciclabat, a São Paulo-based firm that has historically focused on lead-acid battery recycling, announced plans in late 2025 to build a lithium-ion processing line with annual capacity of 5,000 tonnes. The facility, supported by a BNDES (Brazilian Development Bank) loan, is expected to begin operations in early 2027.
International recyclers are also watching the market closely. Li-Cycle, the Canada-headquartered recycling company, disclosed in its Q3 2025 earnings call that it had conducted feasibility studies for a spoke facility in Brazil, citing the country’s growing EV fleet and proximity to nickel and lithium mining operations in Minas Gerais and Bahia.
Meanwhile, BYD—which has rapidly become one of Brazil’s top-selling EV brands and is constructing a manufacturing complex in Bahia’s Camaçari industrial district—has indicated that battery lifecycle management will be integrated into its Brazilian operations, though specific recycling commitments have not been publicly detailed.
- BYD accounted for 28% of Brazil’s EV sales in 2025, making end-of-life planning for its battery packs a significant near-term consideration
- Great Wall Motors (GWM) and Chery have also expanded rapidly in the Brazilian market, collectively adding to the future recycling volume
- Volkswagen and Stellantis, both with major manufacturing bases in Brazil, are exploring regional battery take-back programs
The Raw Material Opportunity
Brazil holds substantial reserves of critical battery minerals. The country is home to the world’s largest known lithium reserves in the Jequitinhonha Valley of Minas Gerais, along with significant nickel deposits in Goiás. Developing domestic recycling capacity could complement primary mining by creating a secondary supply of battery-grade materials, reducing import dependence and potentially positioning Brazil as a regional hub for battery materials.
However, realizing this potential requires infrastructure investment, regulatory clarity, and workforce development—none of which can be accomplished quickly. The Brazilian Mining Association (IBRAM) has estimated that developing a functional EV battery recycling sector could require $800 million to $1.2 billion in cumulative investment through 2032.
For now, Brazil finds itself in a familiar position among emerging EV markets: racing to adopt electric mobility while the end-of-life infrastructure trails years behind. How quickly the country closes that gap will determine whether its EV transition is genuinely circular—or simply shifts an environmental burden from the tailpipe to the landfill.
