China’s Dongjin Group is planning to establish a dry battery manufacturing facility in Allama Iqbal Industrial City, Faisalabad.
The project is expected to help Pakistan meet rising demand for batteries, driven by the rapid growth of electric vehicles and solar energy systems, reported the Associated Press of Pakistan.
The company has announced an investment of $15 million for the facility, which will be set up in the Special Economic Zone near Faisalabad. The investment agreement was signed with the Punjab Board of Investment and Trade.
Speaking to Wealth Pakistan, Sharqi Ali Tipu, Director of Marketing at PBIT, said the company decided to invest after observing strong and growing demand for batteries in Pakistan, particularly due to increased adoption of electric vehicles and solar energy solutions.
He said the project is expected to generate significant economic and industrial activity across multiple sectors while also enabling the transfer of modern technology to the local industry.
The facility will also support allied industries, including electronics, automotive components, packaging, chemicals, and engineering services, while creating employment opportunities in Faisalabad and surrounding regions.
Sharqi Ali Tipu noted that Allama Iqbal Industrial City is one of Pakistan’s flagship Special Economic Zones developed under the China-Pakistan Economic Corridor (CPEC) framework. He added that the zone offers modern infrastructure, strategic connectivity, and investor-friendly policies designed to attract advanced manufacturing projects.
Under Pakistan’s Special Economic Zone incentive package, the company will be eligible for a 10-year income tax holiday, along with a one-time exemption from customs duties and taxes on the import of plant and machinery.
The PBIT official reiterated that the board remains committed to supporting the company at every stage of the investment process.
Stakeholders in the auto and solar sectors believe that establishing advanced battery manufacturing facilities can help meet Pakistan’s rising demand for batteries, especially for electric vehicles and renewable energy storage systems.
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 dependence on imports.
He expressed hope that the recently introduced Battery Manufacturing Policy 2026–31 will further encourage domestic production and private-sector investment in the sector.
Hyder added that batteries have become strategically important globally due to rising 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.
