Chinese battery manufacturer Dongjin Power Tech has partnered with the Punjab Board of Investment and Trade (PBIT) to establish a modern dry battery manufacturing facility in Punjab with an investment of $15 million.
The agreement was formalised through a memorandum of understanding (MoU) signed on Monday, marking another major step in growing Chinese investment in Pakistan’s industrial and renewable energy sectors.
The new plant will be established inside Punjab’s Special Economic Zone (SEZ) and is expected to strengthen local battery production capacity while creating employment and supporting industrial growth.
Dongjin Expands Presence in Pakistan
Dongjin Power Tech operates under the Dongjin Group, a company specialising in the production, research, development, and sales of lead-acid batteries and lithium battery packs.
The company is headquartered in Shenzhen and currently runs lithium battery and lead-acid battery factories in Guangdong and Jiangxi provinces.
Dongjin has also expanded internationally by establishing manufacturing facilities in countries including Pakistan, Bangladesh, India, the Philippines, Turkey, and Brazil.
Industry experts believe the latest investment reflects increasing foreign confidence in Pakistan’s manufacturing sector, particularly in industries linked to renewable energy and electric mobility.
Chinese Investment Drives Pakistan’s Renewable Energy Sector
Over the past decade, Chinese companies and financial institutions have become major contributors to Pakistan’s renewable energy infrastructure.
Billions of dollars have been invested in solar, wind, hydropower, and electricity transmission projects across the country under various bilateral agreements and development initiatives.
The latest battery manufacturing project is expected to complement Pakistan’s growing focus on renewable energy storage solutions and electric vehicle infrastructure.
Analysts say battery manufacturing has become increasingly important globally as countries transition toward clean energy technologies and reduced dependence on fossil fuels.
Pakistan Seeks Collaboration with Global Battery Giants
Separately, Khalil Hashmi, Pakistan’s ambassador to China, revealed on Monday that Pakistani and Chinese companies have signed more than 300 memorandums of understanding and over three dozen joint venture agreements worth more than $13 billion.
He said Pakistan is currently holding active discussions with CATL, one of the world’s leading battery manufacturers known for lithium-ion and sodium-based battery technologies.
According to the envoy, Pakistan is encouraging CATL to invest in the country and explore partnerships in the battery and clean energy sectors.
He expressed optimism that significant progress could be achieved during Prime Minister Shehbaz Sharif’s upcoming visit to China.
Growing Demand for Battery Manufacturing
The rising global demand for electric vehicles, renewable energy storage systems, and portable power technologies has accelerated investments in battery production worldwide.
Pakistan has recently witnessed increased interest in lithium battery projects, including announcements regarding planned battery manufacturing facilities in Karachi and other industrial hubs.
Experts believe local production of batteries could help Pakistan reduce import dependence, lower production costs for electric vehicles and solar systems, and strengthen exports in the future.
The Dongjin project is also expected to contribute to technology transfer and industrial modernisation within Punjab’s economic zones.