Earth Today | Electric vehicles could double jobs in Brazil by 2050 – study

THE LOCAL production of electric vehicles (EVs) could double the number of new jobs in Brazil by 2050, according to a groundbreaking study by the International Council on Clean Transportation (ICCT Brazil), carried out with the support of the United Nations Environment Programme (UNEP).

“Conducted by researchers from ICCT, UNICAMP, and USP, the study highlights that investments in battery manufacturing and workforce training for electromobility can drive a fair energy transition while accelerating the development of a new industrial value chain,” said a July 8 release from the UNEP.

Most of the projected employment growth is concentrated in the service sector – including technical services, engineering, logistics, and commerce – followed by manufacturing segments related to vehicle production, machinery, and electrical equipment.

“The job creation is primarily driven by increased aggregate demand and the expansion of industries such as battery and electrical component manufacturing. Meanwhile, sectors such as fossil fuels, agriculture, and auto parts are expected to see a decline,” it added.

Additionally, the study finds that the income generated (value added) in the EV transition scenario is 85 per cent higher than in the current model, with a more favourable wage distribution (53% of value added going to salaries, compared to 45 per cent today).

“Electric vehicle sales are already growing in Brazil, but we must also consider the social and economic impacts of this transition,” said Marcel Martin, Executive Director of ICCT Brazil, in the release.

Another key finding relates to foreign trade: without proactive policies to boost EV exports, Brazil could lose up to 14 per cent of its job creation potential. Nonetheless, even in that case, the EV transition scenario still results in 88 per cent more net jobs than the current model. Recommended policy measures include tax incentives, export credit programs, and strategic trade agreements – especially with other Latin American countries.