Pakistan Moves to Local Lithium-Ion Battery Manufacturing

January 7, 2026Zayn0

National Battery Policy 2026–2031 Under Review

A high-level meeting on the National Lithium-Ion Battery Manufacturing Policy 2026–2031 was held under the chairmanship of Special Assistant to the Prime Minister (SAPM) on Industries and Production Haroon Akhtar Khan. Senior officials, including Secretary Industries and Production Saif Anjum and Engineering Development Board Chief Executive Officer Hammad Mansoor, as well as representatives from the private sector, attended the session.

Participants reviewed progress on the draft policy and discussed how it can support Pakistan’s broader energy and industrial strategies. Haroon Akhtar Khan stressed that the energy storage policy must be fully integrated into the national energy security framework so that batteries become a reliable backbone for power, transport and telecom systems in the coming years.

Focus on Private Sector and Performance-Based Incentives

The SAPM highlighted that a dedicated Working Group for the National Battery Policy was constituted on 12 December 2025. This group has been tasked with designing a roadmap that makes local battery production commercially viable and attractive for investors. According to a briefing given in the meeting, the proposed policy includes phased localisation targets, tariff reforms and performance-based incentives to draw both domestic and foreign investors into the sector.

Haroon Akhtar Khan underlined that the policy has been developed with close input from federal and provincial ministries, industry stakeholders, universities and international experts. The aim is to create a predictable policy environment where companies can invest in modern plants, research and workforce training without facing sudden changes in rules or duties.

Leveraging Local Minerals and LFP Technology

The meeting was informed that Pakistan has reserves of phosphate, iron and manganese in various regions, which can support the development of lithium-ion battery supply chains. By using these minerals, the country can reduce its dependence on imported raw materials and finished batteries, keeping more value addition inside the local economy.

The committee approved lithium-iron-phosphate (LFP) battery technology for initial localisation. LFP batteries are widely used around the world because they are relatively safer, offer stable performance and have a longer life cycle, making them suitable for applications such as solar energy storage systems, electric vehicles, backup power and mobile towers.

Quality Standards, Testing and Recycling Framework

Emphasising quality and safety, Haroon Akhtar Khan said that the role of the Pakistan Standards and Quality Control Authority (PSQCA) will be critical in ensuring that locally manufactured batteries meet international standards. He called for a strong framework for battery testing, certification and labelling so that products made in Pakistan can compete in both local and export markets.

The SAPM also stressed the need to build a proper recycling and end-of-life management system for batteries. Without safe recycling, used batteries can create serious environmental and health risks. A structured system for collection, reuse and recycling will help protect the environment while allowing valuable materials to be recovered and fed back into production.

Chinese Cooperation and Next Steps for Energy Security

Officials briefed the meeting that, under business-to-business cooperation with China, several multi-million-dollar agreements have already been signed, including those related specifically to battery manufacturing. These partnerships are expected to bring technology transfer, joint ventures and new employment opportunities in Pakistan’s emerging battery industry.

An important meeting of federal and provincial mineral departments is also expected to be held soon to improve coordination on resource mapping and licensing. Haroon Akhtar Khan directed the Engineering Development Board to ensure that the next-generation energy storage policy remains fully aligned with national energy security objectives. He added that consultations with global experts are ongoing, signalling that the government wants to position Pakistan as a serious player in the regional battery and energy storage market.

Zayn

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