Pakistan Advances $558 Million Deals with China for Local Lithium-Ion Battery Production

In a strategic push towards energy independence and value addition, the Pakistani government is forging ahead with $558 million worth of agreements with Chinese firms to localize lithium-ion battery assembly and manufacturing, leveraging domestic mineral reserves.

High-Level Review of National Policy

A key meeting chaired by Special Assistant to the Prime Minister on Industries and Production, Haroon Akhtar Khan, reviewed progress on the National Lithium-Ion Battery Manufacturing Policy 2026–2031. Attended by Secretary Industries and Production Saif Anjum, Engineering Development Board CEO Hammad Mansoor, and private-sector representatives, the session focused on integrating energy storage initiatives with Pakistan’s broader national energy security framework, as directed by the prime minister. Khan emphasized the critical role of private-sector involvement and partnerships with global investors to drive this transformation.

Phased Plan for Domestic Supply Chain

The discussions highlighted business-to-business engagements with Chinese companies to exploit local mineral resources and significantly reduce reliance on imported batteries. A comprehensive phased domestic supply plan was outlined, identifying key gaps in the supply chain, persistent import dependence, potential joint-venture opportunities, and essential policy interventions. This approach aims to foster domestic production capabilities, enhance value addition in the battery sector, and support the growing demand for energy storage solutions. By promoting local manufacturing, the initiative is expected to bolster economic growth, create jobs, and strengthen energy security amid global shifts towards renewable and electric mobility technologies.

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