Pakistan is taking its first concrete step toward energy autonomy with the upcoming launch of the first lithium battery plant in Korangi, Karachi. The facility, developed by Karachi-based engineering firm EV Technologies, marks a strategic pivot from the wholesale import of energy storage systems toward a domestic manufacturing ecosystem.
The plant’s rollout is timed to coincide with the pending approval of the National Lithium-Ion Battery Manufacturing Policy for 2026-31. This policy framework is designed to catalyze the local production of battery cells, reducing the country’s dependence on “Completely Built Up” (CBU) imports and lowering the cost of entry for electric mobility and renewable energy storage.
The Engineering Development Board (EDB) is currently coordinating with multiple government ministries to ensure the regulatory environment supports this industrial shift. By transitioning from importing finished batteries to manufacturing cells locally, the government aims to stabilize the supply chain for the burgeoning electric vehicle (EV) sector and the commercial solar market.
Operational Scale and Immediate Impact
Located within the Korangi Industrial Area, the new facility will start with an initial production capacity of 4 megawatts. While this represents a starting point for the industry, the immediate output is focused on the most accessible segment of the EV market: light electric vehicles.
According to Huma Khattak, CEO of EV Technologies, the plant is expected to supply batteries for approximately 2,000 e-bikes and e-scooters per month. The timing is critical, as the firm expects the production roll-out to occur within the next two to three months, aligning with the expected implementation of the national policy.
The focus on e-bikes and scooters is a calculated entry point. These vehicles require smaller battery packs and have a faster turnover rate than passenger cars, allowing the plant to refine its manufacturing processes before scaling up for larger electric vehicles. The demand for lithium-ion storage is no longer limited to transport; there is a growing appetite in the domestic and commercial sectors for reliable solar energy storage systems to combat power instability.
The Regulatory Roadmap to 2027
The success of the Korangi plant is inextricably linked to the National Lithium-Ion Battery Manufacturing Policy for 2026-31. For the domestic industry to be competitive against cheap imports, the government must address the cost of raw materials and specialized components.
Hammad Mansoor, Chief Executive of the EDB, recently informed stakeholders that the policy has already been submitted to the Ministry of Industries and Production (MoIP). The next critical phase involves the National Tariff Board (NTB), which is tasked with reducing tariffs on the import of parts required for the assembly and manufacturing of lithium batteries.
The path to full legal and financial integration follows a strict bureaucratic sequence:
| Stage | Responsible Authority | Primary Objective |
|---|---|---|
| Tariff Review | National Tariff Board (NTB) | Reduction of import duties on battery components |
| Executive Review | Prime Minister & Cabinet | Formal policy endorsement and legal approval |
| Fiscal Integration | Ministry of Finance | Incorporation into the Budget 2026-27 |
Economic Implications of Local Cell Production
From a financial perspective, the shift from CBU imports to local manufacturing is a move to preserve foreign exchange reserves. Currently, Pakistan relies heavily on imported lithium batteries for electric vehicles and as Uninterruptible Power Supplies (UPS) for critical infrastructure, such as banking systems.
“The aim is to develop a domestic battery industry and reduce the import of CBU batteries,” Mansoor stated, emphasizing that local production is a prerequisite for meeting the power storage demands of both solar energy systems, and EVs.
The technical distinction here is significant. Many “local” battery companies in the region simply assemble imported cells into packs. However, the plan submitted by EV Technologies to the EDB specifically targets the manufacturing of battery cells. This represents a higher-value industrial process that creates more local jobs and provides greater control over the chemistry and safety of the batteries produced.
Bridging the Gap in Solar Storage
Beyond transportation, the Korangi plant addresses a critical bottleneck in Pakistan’s energy transition. As the country shifts toward solar power, the lack of affordable, high-capacity storage has limited the utility of solar installations for many commercial enterprises. Lithium-ion batteries offer superior cycle life and energy density compared to traditional lead-acid batteries, making them essential for the “solar-plus-storage” model.
By localizing the supply chain, the cost of these storage systems is expected to drop, making green energy more accessible to tiny and medium enterprises (SMEs) that currently struggle with high upfront costs for imported storage solutions.
Future Outlook and Constraints
While the Korangi plant serves as a proof-of-concept, the long-term viability of the industry depends on the government’s ability to maintain the tariff reductions promised in the 2026-31 policy. Without these protections, local manufacturers may struggle to compete with the economies of scale enjoyed by global battery giants.
The immediate focus now remains on the National Tariff Board’s decision, which will dictate the cost structure for the first wave of locally produced cells. Once approved, the policy will move toward the cabinet for final sign-off before being codified in the upcoming national budget.
Disclaimer: This report is intended for informational purposes and does not constitute financial or investment advice regarding the electric vehicle or energy sectors.
The next confirmed milestone for the industry will be the National Tariff Board’s review of component duties, followed by the formal inclusion of the battery policy in the Budget 2026-27 announcement.
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