OXIS Energy and the Minas Gerais Development Company CODEMGE have signed a 15-year lease agreement with Mercedes Benz Brazil (MBB) for the construction of a Lithium-Sulfur (Li-S) manufacturing plant in Brazil.

The plant, which will have a capacity to produce five million Li-S per annum, will be located at MBB’s manufacturing site in Juiz de Fora, in the state of Minas Gerais, Brazil.

The plant is expected to cost nearly $50m. Its design and engineering associated will be undertaken by NORDIKA Pharmaceutical of Brazil. Site up-gradation will begin immediately, to be completed in 2023.

Phase 1 is to lease nearly 20,000m² for the production of the Li-S cells, with an option to extend and double the estate and cell production capacity.

OXIS Energy CEO Huw Hampson-Jones said: “Within five years, this factory will be a centre of excellence producing world-class Lithium Sulfur cells and battery systems.

“Exporting worldwide to a range of markets: Aviation, Defence, Heavy Electric Vehicles (HEVs), Light Commercial Vehicles and large Marine Vessels, 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 4bn cells.

“Brazil has the third largest bus market in the world, with 700,000 ICE buses currently in circulation.”

When completed, the site is expected to create hundreds of high-skilled jobs during the next decade and OXIS Energy will have access to the expertise and innovation of students from reputable universities of Juiz de Fora.

OXIS Energy and CODEMGE have already partnered with several Brazilian blue-chip companies on the use of Li-S cells for electrification of regional aircraft, buses and trucks and are collaborating with Brazilian aircraft manufacturers to build electric aircraft in the country.

OXIS Energy is a UK-based company developing Lithium sulphur-based (Li-S) battery cells with lithium as the anode and sulphur as the cathode material.


OXIS/CODEMG to build Li-S manufacturing plant in Brazil. (Credit: OXIS Energy.)