THE government’s decision to develop standards for lithium-ion vehicle batteries is a positive step. As Pakistan moves towards electric mobility, the initiative could support the emergence of a domestic battery industry and create jobs in battery assembly and related services. Several EV assemblers are interested in working on battery assembly or cell manufacturing. This suggests that an ecosystem can begin to develop around the fast-growing EV market here. There is, however, an important distinction between building a battery industry and establishing a genuinely local battery manufacturing industry. Pakistan currently lacks most of the raw materials, technology and upstream industrial capacity required to manufacture lithium-ion cells at scale. Hence, much of what may initially be described as local manufacturing is likely to be battery-pack assembly using imported cells and other components. Assembly can generate employment and technological capabilities, but it should not be mistaken for complete localisation.

This is why we should think beyond the immediate goal of assembling batteries and invest seriously in battery recycling and the wider circular economy. As the country’s EVs, two- and three-wheelers, buses and stationary energy storage systems expand, a large number of batteries will reach the end of their first life. Pakistan should build the capacity to recover valuable materials. This could address the absence of domestic raw materials. Battery recycling should be viewed as a strategic investment, not merely an environmental initiative. The government should encourage investment in recycling plants, establish standards for collection and safe dismantling, introduce extended producer-responsibility rules and incentivise investors to participate in take-back schemes. It should also promote technologies to recover lithium, nickel, cobalt, manganese, graphite and other valuable materials. The long-term goal should be a circular battery economy: importing batteries and materials initially, assembling them locally, recovering materials from spent batteries and feeding them back into domestic production.

Published in Dawn, August 20th, 2026