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Industrial policy and the localization of clean-energy supply chains

Governments worldwide are increasingly combining energy transition policies with local manufacturing incentives and supply-chain security requirements.

Brazil’s proposed battery auction model follows this global trend by seeking to attract manufacturers while expanding domestic storage capacity.

The country’s competitive position will depend on its ability to combine:

  • predictable long-term demand
  • financing mechanisms
  • clear local content rules
  • access to technology and critical components
  • stable tax and regulatory conditions

For foreign suppliers, Brazil may become an important manufacturing and distribution base for Latin America, provided that the regulatory framework supports long-term industrial investment rather than isolated auction opportunities.

Photo: Canva

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