Chinese maker of electric vehicles BYD Co. Ltd says it has begun making lithium iron phosphate batteries at its first battery factory in Brazil, in the northeastern city of Manaus.

BYD announced in writing that it had invested 15 million reals (US$2.7 million) in the factory.

The announcement says the factory has 5,000 square metres of floor space and can make up to 18,000 batteries a year to power electric buses made in another BYD factory, in the southeastern Brazilian city of Campinas.

The first Brazilian-made BYD batteries will power 12 articulated buses the company is making for another southeastern city, São José de Campos, the BYD announcement says.