China’s Dongjin Group is planning to establish a dry battery manufacturing facility in Allama Iqbal Industrial City, Faisalabad. The project will help Pakistan meet rising demand for batteries driven by rapid growth of electric vehicles and solar energy systems. Consequently, a Chinese lithium battery plant in Faisalabad will address this growing need.
The company has announced an investment of 15 million dollars for the facility. The facility will sit in the Special Economic Zone near Faisalabad. The investment agreement was signed with the Punjab Board of Investment and Trade. Sharqi Ali Tipu, Director of Marketing at PBIT, said the company decided to invest after observing strong and growing demand for batteries in Pakistan. Increased adoption of electric vehicles and solar energy solutions drove this demand.
The project will generate significant economic and industrial activity across multiple sectors. The facility will also enable transfer of modern technology to the local industry. The Chinese lithium battery plant in Faisalabad will support allied industries including electronics, automotive components, packaging, chemicals, and engineering services. It will also create employment opportunities in Faisalabad and surrounding regions.
Allama Iqbal Industrial City is one of Pakistan’s flagship Special Economic Zones developed under the CPEC framework. The zone offers modern infrastructure, strategic connectivity, and investor friendly policies. Under Pakistan’s Special Economic Zone incentive package, Dongjin Group will qualify for a 10 year income tax holiday. A one time exemption from customs duties and taxes on import of plant and machinery will also apply.
Former Chairman of the Engineering Development Board, Almas Hyder, said Pakistan is moving toward localizing lithium ion battery manufacturing. This will strengthen energy security and reduce dependence on imports. He expressed hope that the recently introduced Battery Manufacturing Policy 2026 to 2031 will further encourage domestic production. The greater the battery production in Pakistan, the higher the chances of reducing dependence on expensive electricity and imported fossil fuels.
