In Laguna, the first foreign industry to be installed under Governor Jorginho Mello’s administration was the Chinese company Eikto . The company, one of the largest international players in the lithium battery sector, invested approximately R$20 million for its installation, marketing and assembly line in Santa Catarina, last year alone. Now, it has just announced the approval of a second, even larger round of investment: more than R$50 million will be used to expand its facility with a focus on exports, which will generate an average of 100 direct and indirect jobs for the city and region , leveraging local development, according to Eikto ‘s commercial director in Brazil, Mauricio Borba.

“It’s great news for the people of Santa Catarina! The municipality and its workers win, the State wins and the country wins, as the company collects taxes for Santa Catarina. Furthermore, it will export from here to countries such as the United States and Canada, counting on the ease of proximity to the Port of Imbituba, which allows easy import and export”, highlighted Jorginho Mello. To date, the company has collected R$1,204,537.82 in state taxes. For 2024, the expectation is for a global collection of, on average, R$15 million in taxes.

Eikto , which produces lithium battery cells, modules and systems, is China’s largest manufacturer in the sector and is present in 44 countries. Its production focuses on meeting nautical, telecommunications or material handling equipment needs. There are several benefits, both for the environment, such as the reduction of carbon emissions, and for consumers, as the batteries last for 10 years, with product monitoring directly from China. “The products manufactured in Laguna will be destined for the forklift segments”, said Mauricio Borba.

Negotiations

“Last year, at the beginning of Jorginho Mello’s administration, we made our first contact with the company, which also arranged negotiations with the Department of Industry, Commerce and Services; among other state and municipal bodies to enable favorable conditions for its definitive installation in the State. It was based on these alignments that, in March 2023, governor Jorginho Mello announced the interest of the Chinese company Eikto in establishing itself in the municipality of Laguna”, explained the secretary of Foreign Affairs, Juliano Froehner.

In April, representatives of the joint venture met in person with the governor of Santa Catarina and confirmed their presence in the State. The governor guaranteed support for the installation of the multinational, through fiscal aid, which has already been happening since then. At the time, they also informed that the installation of the factory in Laguna, in the town of Caputera – on the banks of BR-101, would begin in May and that the expected revenue, for its first year of operation, would be around R$ 30 millions.

Project

According to Eikto ‘s business plan, the total project will have a value of R$120,972 million, including investments in machinery, inputs, equipment, facilities, civil works, infrastructure, furniture, technology and working capital. “Today, we already have a paid-up amount of share capital through the parent company of R$ 11,120 million, with the amount of R$ 2,435,506.68 as an advance on share capital to be paid”, specified the company’s representative in Brazil, Melina Fechine .

The expert explained that Eikto ‘s plan in Santa Catarina consists of implementing a battery assembly line with machinery using the best technology on the global market, from a welding machine, a bending machine, to a laser cutting and battery testing machine. “In the installation of the lithium ion battery factory there will be a reduction in costs, such as import costs, to better serve potential Brazilian customers, including forklift manufacturers, resellers, machine rental companies, logistics companies and energy-focused companies and solar energy ones.”

The forklift market, according to her, includes internal combustion (IC) and electric (lead and lithium) forklifts. “Among electric batteries, most batteries were lead acid before we entered the Brazilian market, and we are promoting the replacement for lithium batteries. Our presence in Brazil is facilitating this shift in the market between electric forklifts and lithium batteries, also allying local forklift manufacturing companies, who are becoming stronger as they join us against forklifts with imported lithium-ion batteries. Total annual sales of new forklifts in Brazil are currently 30 thousand units.”