Chinese firm Dongjin Group will establish a dry battery manufacturing facility in Allama Iqbal Industrial City near Faisalabad. The company announced a $15 million investment for the plant in the Special Economic Zone. The investment agreement was signed with the Punjab Board of Investment and Trade yesterday.
Sharqi Ali Tipu, Director of Marketing at PBIT, stated the company decided to invest after observing strong demand. Electric vehicle adoption and solar energy solutions are driving battery demand growth in Pakistan. Furthermore, the project is expected to generate significant economic activity across multiple sectors while enabling technology transfer.
Allama Iqbal Industrial City is one of Pakistan’s flagship Special Economic Zones developed under CPEC framework. The zone offers modern infrastructure, strategic connectivity, and investor-friendly policies designed to attract advanced manufacturing projects. Consequently, Dongjin Group will receive a 10-year income tax holiday under Pakistan’s SEZ incentive package.
Former Engineering Development Board chairman Almas Hyder stated Pakistan is moving toward localizing lithium-ion battery manufacturing. This localization aims to strengthen energy security and reduce dependence on imports. Meanwhile, the recently introduced Battery Manufacturing Policy 2026–31 will encourage domestic production and private-sector investment.
Hyder added that batteries have become strategically important globally due to rising renewable energy demand. Electric vehicles and grid stability requirements are driving international battery production expansion. As a result, greater battery production in Pakistan could reduce dependence on expensive electricity and imported fossil fuels.
