Pakistan will soon approve its inaugural national lithium battery manufacturing policy for the period of 2026–31 for the use of lithium batteries in electric vehicles.
The nation’s first lithium battery production facility is expected to commence operations in Karachi shortly.
As per industry insiders, the Pakistan Solar Association (PSA) has confirmed to the Engineering Development Board (EDB) that the plant will initially focus on producing batteries for electric bicycles, e-scooters, and electric vehicles (EVs).
During a stakeholders’ meeting, EDB Chief Executive Hammad Mansoor stated that the draft policy has already been forwarded to the Ministry of Industries and Production and will soon be presented to the National Tariff Board.
This initiative aims to rationalise duties on imported components used in the manufacturing and assembly of lithium batteries.
Upon receiving approval from the NTB, the policy will be forwarded to the Prime Minister and the federal cabinet for final approval.
The Ministry of Finance is expected to officially announce its implementation in the federal budget for 2026–27.
Officials indicate that the policy is intended to inspire local battery manufacturing and reduce dependence on completely built-up (CBU) imports.
“The future of energy depends on storage solutions, and local production is important to satisfy the increasing demand from solar systems and EVs,” commented Mansoor.
At present, imported lithium batteries are extensively used in electric vehicles and as backup power systems in sensitive facilities such as banks.
In the meantime, a Karachi-based engineering company, EV Technologies, has put forth its proposal to manufacture lithium battery cells.
Production of lithium batteries set to begin in a few months
CEO Huma Khattak further mentioned that the plant has already been ordered and is expected to initiate production within two to three months.
The facility will be established in the Korangi Industrial Area with an initial capacity of 4 megawatts, which will be capable of supplying batteries for nearly 2,000 e-bikes and e-scooters each month.
Industry experts now observe that Pakistan’s swift transition towards solar energy is also fueling significant demand for lithium battery storage in both residential and commercial sectors.
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