ISLAMABAD: Chinese company Dongjin Group recently announced its plan to invest $15 million in a dry battery facility in the eastern city of Faisalabad, state-run Associated Press of Pakistan (APP) reported on Monday.
Dongjin Group designs, manufactures and sells lead acid batteries and chargers used in UPS systems, telecom, medical equipment, electric vehicles, solar and wind power systems and others. The Chinese company recently announced its plan to invest $15 million in the facility, APP said, adding that it will be established in the Special Economic Zone near Faisalabad.
The investment agreement was signed with the Punjab Board of Investment and Trade (PBIT), the state-run media reported.
“Chinese company Dongjin Group’s plan to establish a dry battery manufacturing facility in Allama Iqbal Industrial City is expected to help Pakistan meet growing demand for batteries, driven by the expansion of electric vehicles and solar energy systems,” APP said.
Sharqui Ali Tipu, director of marketing at PBIT, said Dongjin Group decided to establish the plant after observing the increasing demand of batteries in Pakistan, particularly due to the growing use of electric vehicles and solar energy solutions in the country.
He said the project is expected to generate economic and industrial activity across multiple sectors, while facilitating the transfer of modern technology.
Tipu said the battery plant is likely to support allied industries, including electronics, automotive components, packaging, chemicals and engineering support services. He added that it would also create employment opportunities in Faisalabad and its surrounding areas.
“Under Pakistan’s Special Economic Zone incentive package, the company will be eligible for a 10-year income tax holiday and a one-time exemption from customs duties and taxes on the import of plant and machinery,” APP said.
Almas Hyder, former chairman of the Engineering Development Board, an apex government body under the Ministry of Industries & Production, noted that Pakistan is moving toward localizing lithium-ion battery manufacturing to strengthen energy security and reduce import dependence.
Hyder said batteries have become strategically important globally due to their growing demand linked to renewable energy, electric vehicles and grid stability.
“The greater the battery production in Pakistan, the higher the chances of reducing dependence on expensive electricity and imported fossil fuels,” Hyder was quoted as saying by the APP.
