Pakistan plans $2.25 billion battery gigafactory as demand projected to hit 100,000 MW in four years: report

Margalla Heavy Industries Limited has agreed to invest $2.25 billion with Chinese and local partners in a lithium-ion battery plant in Rawalpindi, Profit by Pakistan Today reported, citing Arab News. The project is awaiting approval of the government’s battery manufacturing policy; production could start six to eight months after approval. The partners have not been identified.

The facility is expected to begin with annual output of 200-300 megawatts, with plans to expand beyond 1,000MW. Engineering Development Board chief Hamad Ali Mansoor said battery storage demand could reach 100,000MW by June 2030 if economic growth is at least 5%, while grid stabilisation alone could need 3,000-5,000MW. Pakistan currently assembles about 3,000-4,000MW of batteries, according to the EDB.

The pending policy envisages four battery manufacturing sites and export requirements for producers. The government’s automotive policy for 2026-2031 has received approval from Prime Minister Shehbaz Sharif but is awaiting IMF clearance on proposed EV tax incentives.