Agreement Signed for Local Lithium-Ion Battery Production
Pakistani industrial conglomerate Saigol Group and China’s Juhang Energy Technology Group have signed a memorandum of understanding (MoU) to pave the way for lithium-ion batteries to be manufactured in Pakistan, state media reported on Sunday. The move aligns with Islamabad’s shift toward cleaner energy resources.
Lithium-ion batteries power commonly used devices such as mobile phones, electric vehicles, and wearables. They can store energy from renewable sources including solar, wind, tidal currents, biofuels, and hydropower, producing fewer carbon emissions than fossil fuels.
Pakistan’s Growing Solar Energy Sector
Pakistan has sought to transition toward cleaner energy sources like solar and wind in recent years. Official figures show solar power grew from 4 percent of the energy mix in 2021 to over 14–25 percent in 2024-2025.
Speaking at the signing ceremony, the prime minister’s aide on industries and production, Haroon Akhtar Khan, said the partnership reflects growing economic ties between Pakistan and China. “The agreement focuses on the local production of lithium-ion batteries, marking a significant step in the development of Pakistan’s emerging advanced manufacturing and clean energy sector,” state broadcaster Radio Pakistan reported.
Benefits of Local Manufacturing
The report did not specify where the manufacturing facility in Pakistan will be set up. However, Khan noted that local production of lithium-ion batteries would help reduce import dependence, create employment opportunities, and support industrial self-sufficiency for Pakistan. He emphasized that this is particularly important as Pakistan expands its use of solar energy and other renewables, which require advanced storage systems.
Khan described battery manufacturing as a key industry of the future, adding that Pakistan is positioning itself to benefit from global technological shifts through partnerships and innovation. “He also reiterated the government’s commitment to facilitating investors and promoting industrial growth as part of its long-term economic strategy,” the state media added.
Previous Chinese Investment in Battery Manufacturing
Pakistan has recently sought help from Chinese companies to locally manufacture batteries and reduce dependence on imports. Last month, the state-run Associated Press of Pakistan (APP) reported that Chinese company Dongjin Group plans to establish a dry battery manufacturing facility in Pakistan’s Faisalabad. According to APP, the facility is expected to help Pakistan meet growing demand for batteries, driven by the expansion of electric vehicles and solar energy systems.
