First lithium battery manufacturing plant set to open in Karachi

KARACHI: Pakistan’s first national lithium-ion battery manufacturing policy for 2026–31 is nearing approval, while the country’s first lithium battery production plant is set to become operational in Karachi soon.

According to industry sources, the Pakistan Solar Association (PSA) has assured the Engineering Development Board (EDB) that the facility will initially produce batteries for electric bikes, e-scooters, and electric vehicles (EVs).

Chairing a stakeholders’ meeting, EDB Chief Executive Hammad Mansoor said the draft policy has already been submitted to the Ministry of Industries and Production and will soon be presented before the National Tariff Board. The move aims to rationalise duties on imported components used in lithium battery manufacturing and assembly.

Following NTB approval, the policy will be sent to the prime minister and the federal cabinet for final clearance. The Ministry of Finance is expected to formally announce its implementation in the 2026–27 federal budget.

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Officials say the policy is designed to promote local battery manufacturing and reduce reliance on completely built-up (CBU) imports. “The future of energy depends on storage solutions, and local production is essential to meet growing demand from solar systems and EVs,” Mansoor said.

Currently, imported lithium batteries are widely used in EVs and as backup power systems in sensitive installations such as banks.

Meanwhile, a Karachi-based engineering firm, EV Technologies, has submitted its plan to manufacture lithium battery cells. CEO Huma Khattak said the plant has already been ordered and is expected to begin production within two to three months.

The facility will be set up in Korangi Industrial Area with an initial capacity of 4 megawatts, capable of supplying batteries for around 2,000 e-bikes and e-scooters per month.

Industry experts note that Pakistan’s rapid shift toward solar energy is also driving strong demand for lithium battery storage in both residential and commercial sectors.