ISLAMABAD, May 13 (ABC): Chinese company Dongjin Group’s plan to establish a dry battery manufacturing facility in Allama Iqbal Industrial City is expected to help Pakistan meet growing demand for batteries, driven by the expansion of electric vehicles and solar energy systems.
The company recently announced its plan to invest $15 million in the facility to be established in the Special Economic Zone near Faisalabad. The investment agreement was signed with the Punjab Board of Investment and Trade (PBIT).
Talking to Wealth Pakistan, Sharqui Ali Tipu, Director of Marketing at PBIT, said the company decided to establish the plant after observing expanding battery demand in Pakistan, particularly due to the growing adoption of electric vehicles and solar energy solutions.
He said the project is expected to generate economic and industrial activity across multiple sectors while facilitating the transfer of modern technology.
According to him, the facility is also likely to support allied industries, including electronics, automotive components, packaging, chemicals, and engineering support services, besides creating employment opportunities in Faisalabad and surrounding areas.
Sharqui Ali Tipu noted that Allama Iqbal Industrial City is among Pakistan’s flagship Special Economic Zones developed under the framework of the China-Pakistan Economic Corridor.
He said the zone offers modern infrastructure, strategic connectivity, and investor-friendly policies aimed at attracting advanced manufacturing projects.
Under Pakistan’s Special Economic Zone incentive package, the company will be eligible for a 10-year income tax holiday and a one-time exemption from customs duties and taxes on the import of plant and machinery.
The PBIT official said the board remains committed to supporting the company at every stage of the investment process.
Stakeholders in the auto and solar sectors believe the establishment of advanced battery manufacturing facilities can help meet Pakistan’s rising demand for batteries, especially for electric vehicles and solar energy systems.
Talking to Wealth Pakistan, former chairman of the Engineering Development Board Almas Hyder said Pakistan is moving toward localizing lithium-ion battery manufacturing to strengthen energy security and reduce import dependence.
He expressed hope that the recently introduced Battery Manufacturing Policy 2026–31 would encourage domestic manufacturing and private-sector investment in the sector.
Almas Hyder said batteries have become strategically important globally due to growing demand linked to renewable energy, electric vehicles, and grid stability.
“The greater the battery production in Pakistan, the higher the chances of reducing dependence on expensive electricity and imported fossil fuels,” he said.
