Pakistan’s Saigols Group and China’s Hebei Juhang Energy Technology Group signed a memorandum of understanding on June 29 to co-develop lithium-ion battery manufacturing, energy storage systems, and electric vehicle charging infrastructure in Pakistan, in what Islamabad described as a landmark step toward building a clean energy industrial base in the country (The Nation; The Daily CPEC).
The agreement was welcomed by Haroon Akhtar Khan, Special Assistant to the Prime Minister on Industries and Production, who framed it as part of Pakistan’s effort to use the next phase of CPEC to move into higher-value clean technology manufacturing rather than infrastructure construction. The deal combines Chinese technical expertise in battery systems with Pakistan’s strategic location and growing domestic energy storage demand.
Separately, Pakistan is in discussions with CATL — the world’s largest EV battery manufacturer — over a potential investment and manufacturing cooperation deal (Arab News). A Chinese company also announced in May that it would build a $15 million lithium battery plant in Pakistan (ProPakistani).
Pakistan’s EV ambitions under CPEC
Pakistan currently imports the overwhelming majority of its vehicle fleet and has minimal domestic battery manufacturing capacity. The government has identified the electric vehicle and energy storage sectors as priority areas for the CPEC’s second decade, which has shifted its emphasis from power generation and roads toward industrial cooperation and export-oriented manufacturing. A joint China-Pakistan lab has also been established under CPEC to work on energy storage and grid innovation.
Pakistan’s domestic energy demand, power grid instability, and rising fuel import costs provide a commercial rationale for accelerated EV adoption — but analysts note that expanding EV infrastructure requires reliable grid power, which remains a significant constraint in a country that continues to experience widespread load-shedding.
