Anuario Brasileiro do Cobre | Brazilian Copper Yearbook 2022

Anuário Brasileiro do Cobre Brazilian Copper Yearbook 2022 15 Brazil has huge potential to evolve in electric mobility, but there are a lot of gaps in the law, in regulations and policies to leverage the industry and final consumers. The benefits of electric vehicles are well known and easy to list - sustainability, energy efficiency, noise reduction, advanced technology, less maintenance, and so on. So, when we analyze the electromobility sector, we can say that what holds the area back is a lack of public policy regarding the improvement and popularization of vehicles, especially in Brazil. Speaking specifically about the industry, research and innovation could evolve exponentially with more investment and resources targeted at the products to be developed. This is because much of the technology needed to manufacture the components of electrified vehicles comes from other countries, making it more expensive and hindering access, which prevents the sector from reaching its full autonomy and capacity. It is important to stress that the industrialization of Brazil is considered by many experts to be delayed, since it began in the twentieth century – almost two centuries after Europe. This caused the country to become dependent on others – in industrial, technological, and - consequently – economic terms. An example of how this principle affects the production chain is in the semiconductor crisis. With the Covid-19 pandemic, the companies responsible for making them were forced to shut down, and many closed for good. Considering that the sector needs months of planning to meet global demand, this delay caused a shortage and a delay in the assembly of new cars, with Brazil and other countries facing problems caused by low supply. If Brazil invested more in R&D, would the situation be the same? The fact is that private companies cannot invest the resources needed to improve disruptive technologies - which would give them autonomy and strength - without the support of the public sector. In this respect, ABCobre’s initiative with Sindicel to form an electric mobility working group opens the discussion among participating companies, engaged in supporting public and private initiatives and empowering them to undertake new projects to develop new products or get into new markets According to a survey conducted by the Society of Automotive Engineers (SAE), electric and hybrid cars account for 25% if the vehicle fleet in Brazil, a number too low to attract investment needed to leverage the market. Even so, the SAE estimates that by 2030, this will be between 12% and 22%. In a more optimistic view, it could be up to 62%, depending on public policy to de-carbon the economy. A good alternative would be for the Government to offer temporary tax breaks to companies that develop technology that aids electromobility until the market has achieved attractive demand. This would boost the national economy and infrastructure. Another important point is related to the strengthening of the environmental, social and corporate governance (ESG) agenda. To evolve and achieve the standards set out under ESG, companies see automotive electrification as a solution to reduce pollution. For example, Via Varejo – the owner of brands such as Casas Bahia and Ponto Frio retailers – has invested in ten electric vans to serve the city of Sao Paulo, and it plans to add more trucks to transport products. The Sao Paulo Light and Power Company (CPFL) now has 15 electric cars in Sao Paulo state. Other companies such as iFood, Americanas and Magazine Luiza have also seen the results that such measures can achieve. Public policy on electric mobility helps the development of businesses, consumer access to products, and the environment – as carbon emissions and greenhouse gases are reduced. In the quest to meet the goals set by the Paris Agreement – which seeks to combat rising temperatures – it is essential that Brazil be positioned through policies that favor clean energy and the development of national industry. Is the lack of public policy still an obstacle to electric mobility? By Marisa Zampolli, CEO of MM Integrated Solutions, coordinator of the electric mobility working group, electrical engineer and electromobility specialist.

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