Pakistan’s first lithium-ion battery plant to begin operations in Korangi

ISLAMABAD: Pakistan is moving closer to launching its first lithium-ion battery manufacturing facility as the National Lithium-Ion Battery Manufacturing Policy 2026–31 enters the final stages of approval, officials said on Saturday.

According to stakeholders, the planned plant in Karachi will mark a major step toward developing a domestic battery industry aimed at supporting electric mobility and energy storage systems in the country. The initiative is being coordinated through the Engineering Development Board (EDB) in consultation with industry players, including the Pakistan Solar Association (PSA).

EDB Chief Executive Hammad Mansoor said during a stakeholder meeting that the policy has been forwarded to the Ministry of Industries and Production and will soon be reviewed by the National Tariff Board. The proposal includes reductions in import duties on parts required for assembling and manufacturing lithium-ion batteries.

Once approved by the tariff board, the policy will be submitted to the prime minister and later placed before the federal cabinet for final approval. It is expected to be reflected in the Budget 2026–27 after clearance from the finance ministry.

Officials said the broader objective is to reduce dependence on imported complete battery units while building local capacity for energy storage solutions, particularly for electric vehicles and solar systems.

At present, Pakistan relies heavily on imported lithium-ion batteries used in electric bikes, scooters, electric vehicles, and backup power systems, including UPS installations in sensitive facilities such as banks.

A Karachi-based engineering firm, EV Technologies, has already submitted its production plan to the EDB and is preparing to set up a manufacturing plant in the Korangi Industrial Area. The facility is expected to become operational within the next two to three months, aligning with the anticipated policy approval timeline.

Company officials said the plant will initially have a production capacity of 4 megawatts, sufficient to supply batteries for approximately 2,000 electric bikes and scooters per month. They added that rising adoption of solar energy and electric mobility is driving strong demand for locally produced lithium-ion storage solutions in both household and commercial sectors.