Chinese company Dongjin Group is set to establish a $15 million dry battery manufacturing plant in the Allama Iqbal Industrial City Special Economic Zone (SEZ) near Faisalabad, marking another major foreign investment initiative under Pakistan’s industrial development strategy.
Read More: Zong, Mashreq Bank Partner to Enable Seamless Telecom Services Through Digital Banking
The investment agreement was formalised with the Punjab Board of Investment and Trade (PBIT), with the project aimed at meeting rising domestic demand driven by the rapid expansion of electric vehicles (EVs), solar energy systems and energy storage solutions.
Officials stated that the facility is expected to support Pakistan’s growing push toward localisation of battery manufacturing, reducing reliance on imported batteries while strengthening the country’s clean energy and industrial ecosystem.
According to PBIT, the project is likely to stimulate broad-based industrial activity and create employment opportunities in Faisalabad and surrounding areas. The investment is also expected to support allied industries including automotive parts, electronics, chemicals, packaging and engineering services.
The plant will be established within the Allama Iqbal Industrial City, a key industrial hub developed under the China-Pakistan Economic Corridor (CPEC) framework. The SEZ offers investor incentives including a 10-year income tax exemption and customs duty relief on imported machinery and equipment.
Industry experts believe the move reflects Pakistan’s increasing focus on energy security and sustainable industrial growth. With battery demand rising globally due to EV adoption and renewable energy storage needs, local manufacturing capacity is becoming strategically important.
Dongjin Group, headquartered in Shenzhen, China, operates multiple battery manufacturing facilities worldwide and specialises in lead-acid batteries, lithium battery packs and energy storage technologies.
