Pakistan Eyes $558m Lithium-Ion Battery Deals with China

Pakistan is stepping up efforts to localise lithium-ion battery manufacturing through prospective agreements worth $558 million with Chinese firms, as part of a broader strategy to support electric mobility, energy storage, and next-generation telecom infrastructure, officials revealed.

The government is pursuing business-to-business engagements with Chinese companies for lithium-ion battery assembly and manufacturing, with a focus on value addition and the utilisation of local mineral reserves. Officials said a phased domestic supply plan has been identified to address existing gaps in the value chain, reduce import dependence, explore joint-venture opportunities, and outline required policy interventions.

Pakistan Eyes $558m Lithium-Ion Battery Deals with China

The developments were discussed at a high-level meeting on the Lithium-Ion Battery Policy, chaired by Special Assistant to the Prime Minister on Industries and Production Haroon Akhtar Khan. The meeting was attended by Secretary Industries and Production Saif Anjum, Engineering Development Board (EDB) Chief Executive Hammad Mansoor, and representatives from the private sector.

Participants reviewed progress on the National Lithium-Ion Battery Manufacturing Policy 2026–2031, which aims to create a domestic ecosystem for battery production to support electric vehicles (EVs), renewable energy storage, and industrial applications. The SAPM stressed that the energy storage policy must be fully integrated into Pakistan’s national energy security framework, in line with the prime minister’s directives, and underscored the importance of partnerships with the private sector and global investors.

Officials said the push for local battery manufacturing aligns with parallel policy moves in the telecom sector, where the government is preparing to rationalise taxes on smartphones ahead of the upcoming spectrum auction. A high-level committee led by the Secretary of Finance and the Chairman of the Federal Board of Revenue (FBR) is also working on proposals to slash handset taxes in the 2026–27 budget to accelerate the adoption of 5G-ready devices and support local manufacturing.

See Also: Government Plans to Cut Smartphone Taxes to Support 5G Rollout

The planned tax cuts will address low 5G handset penetration and complement the technology-neutral spectrum auction, which will significantly expand Pakistan’s available mobile spectrum. Industry experts view improved access to affordable smartphones and enhanced network capacity as mutually reinforcing pillars of the country’s digital transformation agenda.

Analysts note that lithium-ion batteries will play a critical role in supporting 5G infrastructure, including backup power for telecom towers, data centres and network equipment, particularly in areas facing grid instability. Local battery production could also lower costs, improve supply resilience, and support faster deployment of advanced mobile networks.

With mobile data consumption rising and the government seeking to reduce reliance on imports across strategic sectors, officials said coordinated industrial, energy, and telecom policies would be key to strengthening Pakistan’s technological base and achieving broader economic and digital development goals. Further details on the battery policy implementation framework and telecom tax proposals will be available in the coming months.