Dongjin Group to set up $15m battery plant in Faisalabad SEZ

May 11, 2026 (MLN): Chinese firm Dongjin Group is set to establish a dry battery manufacturing facility in Pakistan’s Allama Iqbal Industrial City, aiming to cater to surging domestic demand driven by electric vehicles (EVs) and solar energy systems.

The company will invest around $15 million in the project, which will be developed in the Special Economic Zone (SEZ) near Faisalabad. The investment agreement was formalized with the Punjab Board of Investment and Trade (PBIT).

According to PBIT Director of Marketing Sharqui Ali Tipu, the decision to set up the facility was driven by Pakistan’s rapidly expanding battery market, particularly fueled by increasing adoption of EVs and renewable energy solutions such as solar power systems.

He said the project is expected to stimulate broad-based industrial activity, while enabling technology transfer and supporting allied industries including automotive parts, electronics, chemicals, packaging, and engineering services.

The facility is also anticipated to generate new employment opportunities in Faisalabad and surrounding regions.

Allama Iqbal Industrial City, developed under the China-Pakistan Economic Corridor (CPEC) framework, offers modern infrastructure and investor-friendly policies.

Under Pakistan’s SEZ incentive regime, the company will benefit from a 10-year income tax holiday along with a one-time exemption on customs duties and taxes for imported machinery and equipment.

Former Engineering Development Board chairman Almas Hyder said Pakistan is gradually moving toward localizing lithium-ion and advanced battery manufacturing to strengthen energy security and reduce import dependency.

He added that batteries are becoming strategically vital globally due to rising demand from EVs, renewable energy storage, and power grid stability.

He further noted that enhanced domestic battery production could help reduce reliance on expensive electricity and imported fossil fuels, while supporting Pakistan’s long-term industrial and energy transition goals.

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