Pakistan Plans $2.25 Billion Lithium-Ion Battery Plant

Pakistan is planning a $2.25 billion lithium-ion battery plant in Taxila, near Rawalpindi, according to Engineering Development Board (EDB) chief executive Hamad Ali Mansoor. The project involves Margalla Heavy Industries Limited, Chinese partners and a local investor, whose names have not been disclosed.

Mansoor told Arab News that feasibility studies are complete and the plant building and machinery are in place. However, production is still pending approval of the government’s lithium-battery manufacturing policy. He estimated that manufacturing could begin within six to eight months after approval.

Project awaits policy approval

The proposed investment and timeline remain based on the EDB chief’s account. The partners have not been publicly named, and the project is not yet producing batteries. Mansoor said the plant would initially operate below its planned capacity before scaling up.

The government’s draft lithium-battery manufacturing policy was submitted to the Ministry of Industries in March and is still awaiting approval, according to the report. The plan also envisages additional battery factories in Punjab and Karachi.

Demand forecasts are projections

The EDB estimates that Pakistan’s battery energy storage demand could reach 80,000 to 100,000 megawatts by June 2030, depending on economic growth. This is a projection, not a confirmed order or a measure of the proposed plant’s current output.

The proposed facility is intended to manufacture lithium-ion cells, which are used in battery packs for electric vehicles and energy storage systems. Local cell production would be a step beyond assembling battery packs from imported cells, but the project’s timing and capacity depend on policy approval and implementation.