Brazil's national development bank BNDES has approved R$123.6 million in financing for Toyota do Brasil to build a biofuel technology centre in Sorocaba.
The funding comes from the bank's BNDES Mais Inovação programme and is designed to expand research, development, and innovation capabilities for hybrid flex-fuel vehicles in the country.
BNDES selected the project following a joint public tender launched in 2025 with Finep, Brazil's public innovation funding agency, to attract, establish, or expand corporate research and development centres.
Facilities and testing capabilities
The new centre will be built in Sorocaba, a major industrial hub in the state of São Paulo where Toyota operates a vehicle manufacturing plant. The facility will bring together research, calibration, validation, functional testing, and the ongoing development of embedded automotive systems.
Implementation of the project includes purchasing specialized technical equipment, constructing a dedicated research laboratory, and building a new test track specifically designed for vehicle development work.
The site will allow engineers to carry out advanced simulations and technical evaluations focused on energy efficiency, emissions reductions, and the evolution of hybrid flex-fuel powertrains, drawing on local engineering talent.
Decarbonisation and local industry
Flex-fuel engines can run on sugarcane ethanol, gasoline, or any combination of the two fuels. Combining ethanol flex-fuel technology with electric motors creates hybrid vehicles that take advantage of Brazil's extensive renewable biofuel infrastructure to cut carbon emissions.
Aloizio Mercadante, the president of BNDES, said in a statement that the initiative links the introduction of low-carbon automotive technology in Brazil with the expansion of the local supply chain through domestic procurement.
Toyota do Brasil said the centre reinforces its multi-pathway strategy of combining electrification with ethanol for decarbonisation in Brazil. Evandro Maggio, the president of Toyota do Brasil, said in a statement that the project reflects the company's confidence in the capabilities of Brazilian engineering.
