First lithium battery plant to be set up in Korangi

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ISLAMABAD: As the Na­­­­t­­­­­­­­­i­­­­on­al Lithium-Ion Batt­ery Manufacturing Policy for 2026-31 nears approval, the country’s first Li battery pr­­­o­­duction plant will soon be­­­c­­­ome operational in Karachi.

The Pakistan Solar Association (PSA) has assured the Engineering Development Board (EDB) that the plant will initially manufacture Li batteries for electric bikes, e-scooters and electric vehicles.

Chairing a meeting of stakeholders on Saturday, EDB Chief Executive Hammad Mansoor told participants that the policy has already been forwarded to the Ministry of Industries and Production (MoIP) and will soon be taken up with the National Tariff Board to reduce the tariff on the import of parts for the assembly and manufacturing of Li batteries.

After NTB approval, the policy will be forwarded to the prime minister and then to the cabinet for approval. Subsequently, the finance ministry will announce it in the Budget 2026-27.

“The aim is to develop a domestic battery industry and reduce the import of CBU batteries,” Mr Mansoor said, adding that the future of energy depends on batteries and that local production is essential to meet the power storage demand for solar energy storage systems and electric vehicles (EVs).

Currently, imported Li batteries are used in electric vehicles and as UPS for sensitive locations, including banks. However, a Karachi-based engineering firm, EV Technologies, has submitted its plan to the EDB for the manufacturing of Li battery cells.

“The plant has been ordered, and its production roll-out is expected in 2-3 months, by the time the policy will be in place too,” said Huma Khattak, CEO of EV Technologies.

The plant will be established in the Korangi Industrial Area, Karachi, with an initial capacity of 4 megawatts, which can supply Li batteries for almost 2,000 e-bikes and e-scooters per month. Ms Khattak said that the country was shifting to solar power and the demand for Li batteries was present in domestic and commercial sectors too.

Published in Dawn, April 12th, 2026

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