China’s Dongjin Group has announced plans to set up a dry battery manufacturing plant at Allama Iqbal Industrial City in Faisalabad, with a total investment of $15 million.
The project will be located in the Special Economic Zone near Faisalabad, and the investment agreement has already been signed with the Punjab Board of Investment and Trade. The facility is expected to help Pakistan meet the growing demand for batteries, driven by the rapid rise of electric vehicles and solar energy systems across the country.
Sharqi Ali Tipu, Director of Marketing at PBIT, said the Chinese company decided to invest in Pakistan after seeing strong and increasing demand for batteries, particularly due to the growing use of electric vehicles and solar solutions. He added that the project is expected to generate significant economic activity across multiple sectors and will also help transfer modern technology to Pakistan’s local industry.
Beyond battery production, the facility will also support related industries including electronics, automotive parts, packaging, chemicals, and engineering services — while creating new job opportunities in Faisalabad and surrounding areas.
Tipu noted that Allama Iqbal Industrial City is one of Pakistan’s top Special Economic Zones developed under the China-Pakistan Economic Corridor framework, offering modern infrastructure, strong connectivity, and investor-friendly policies designed to attract advanced manufacturing projects.
Under Pakistan’s Special Economic Zone incentive package, Dongjin Group will receive a 10-year income tax holiday along with a one-time exemption from customs duties and taxes on imported plant and machinery.
Industry experts and stakeholders in the auto and solar sectors believe that setting up advanced battery manufacturing facilities in Pakistan is a critical step toward meeting the country’s rising demand, especially for electric vehicles and renewable energy storage.
Former Chairman of the Engineering Development Board, Almas Hyder, said Pakistan is working toward localizing lithium-ion battery manufacturing to strengthen energy security and reduce dependence on imports. He expressed hope that the newly introduced Battery Manufacturing Policy 2026–31 will further encourage domestic production and attract more private-sector investment.
Hyder added that batteries have become strategically important worldwide due to growing demand linked to renewable energy, electric vehicles, and power 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.
