Mission 3 allocates BRL 1.6 tri in private, public funds for sustainable cities, green mobility

President Luiz Inácio Lula da Silva, Geraldo Alckmin, Vice President and Minister of Development, Industry, Trade, and Services (Desenvolvimento, Indústria, Comércio e Serviços / MDIC), and ministers Rui Costa (Chief of Staff) and Jader Filho (Cities), along with several entrepreneurs, announced investments totaling BRL 1.6 trillion for projects linked to Mission 3 of the New Industry Brazil (Nova Indústria Brasil / NIB) program, expected to come through by 2029. The act takes place this Wednesday, October 30, at 11 a.m., at the Planalto Palace.

Launched in January this year, NIB is an industrial policy that aims to bolster national development by 2033, based on elements such as sustainability and innovation. From the total BRL 1.6 trillion to be announced, 75% will come from the private sector. The goal of Mission 3 is to improve urban life quality, integrating sustainable mobility, housing, infrastructure, and basic sanitation.

"The expressive volume of investments demonstrates the correct focus of New Industry Brazil, which in this case will strengthen the country's infrastructure and mobility, bringing well-being to our citizens while also promoting an innovative industry," stated Geraldo Alckmin. "Collaboration between the public and private sectors is the key to transforming our cities with projects that bring development and life quality for millions of Brazilian citizens," he added.

CREDIT LINES – Among public the resources for Mission 3, BRL 113.7 billion come from credit lines and subsidies from the More Production Plan (Plano Mais Produção / P+P).  A total of BRL 48.6 bi has already been earmarked to such projects (since 2023) and another BRL 65.1 bi will be available by 2026. Created to serve as a permanent financing tool for the NIB, the P+P Plan now counts with the backup of the Caixa Econômica Federal bank, which invested BRL 63 billion. This elevated the total of resources for projects linked with the NIB's six missions to BRL 405.7 bi.

The other institutions connected to the P+P Plan are the National Development Bank (Banco Nacional de Desenvolvimento  /BNDES), Finep, Banco do Nordeste (BNB), Banco da Amazônia (Basa), and Embrapii. Another BRL 492.4 billion in public resources for Mission 3 come from Caixa, BNB, and BNDES. This amount is earmarked for construction works of the Growth Acceleration Program (Programa de Aceleração do Crescimento  /PAC) and the Minha Casa Minha Vida housing program, with investments that have boosted industrial activities linked to this mission.

PRIVATE INVESTMENTS – During the ceremony held this Wednesday, the Brazilian Association of the Infrastructure and Capital Goods Industry (Associação Brasileira da Infraestrutura e Indústrias de Base / ABDIB), the Brazilian Construction Industry Chamber (Câmara Brasileira da Indústria da Construção / CBIC), and the Brazilian Association of the Construction Materials Industry (Associação Brasileira da Indústria de Materiais de Construção / Abramat) will announce new investments of BRL 1.05 trillion in the fields of housing, infrastructure, and basic sanitation by 2029. The largest part of these resources will be destined to urban mobility works, sanitation, airports, railways, roadways, and ports, among others, totaling BRL 833 billion, and another BRL 222.5 billion for housing and BRL 1.6 billion for the production of inputs.

ELECTRIC BATTERIES – The announcements from the private sector also include investments from WEG, a high-tech Brazilian company, to produce electric battery packs in Brazil, with an initial amount of BRL 100 million. In the past two years, WEG has announced a total of BRL 1.8 billion of investments in Brazil linked to Mission 3. Thus, WEG joins other companies already operating in the country with this approach, such as BorgWarner, which develops batteries for electric buses at its facility in Piracicaba, in the state of São Paulo.

As MDIC's Secretary for Industrial Development, Innovation, Trade and Services, Uallace Moreira, points out, Brazil has large reserves of lithium and other minerals used in the production of electric batteries. However, almost all of these minerals extracted today are exported for the production of components outside the country. “Our aim is to change that. Mainly because the batteries manufactured here, using our renewable energy sources, will be much more sustainable than those produced in countries that still rely heavily on coal as an energy source,” Uallace emphasized.

GOALS AND CHALLENGES – The development of the battery production chain is among the priorities of Mission 3. The goal set by the National Council for Industrial Development (Conselho Nacional de Desenvolvimento Industrial / CNDI) is to have at least 3% of Brazilian electric vehicles running on domestically produced batteries by 2026, with a target of reaching 33% by 2033.

Another goal is to deliver two million houses contracted under the Minha Casa Minha Vida program by 2026, 500,000 of which will be equipped with solar panels. By 2033, the aim is to build 6.9 million homes, 1.4 million of which will have photovoltaic panels. Among the priorities and challenges are also the development of metro-rail chains, as well as their components, and propulsion systems for motor vehicles.

INNOVATION – At the ceremony on Wednesday, Finep will sign eight subsidy contracts and two direct credit contracts for the development of new technologies, with a total value of BRL 157 million. Of this amount, nearly BRL 10 million will go toward the project of a 'flying boat,' a vehicle capable of flying over river surfaces. The technology is being developed by the Amazonian startup AeroRiver. According to the company, the flying boat will be able to transport up to 10 passengers, even during dry periods, reaching speeds of 150 km/h. The other projects involve solutions for sustainable aviation (such as a hybrid turbo-generator powered by ethanol), research and technology centers, waste remanufacturing, and the development of an autonomous electric truck for industrial use, among others.