ISLAMABAD: Hub Power Company Limited (HUBCO), the largest Independent Power Producer (IPP) in Pakistan, has announced its intentions to enter the lithium mining sector and establish a battery manufacturing unit. This move was disclosed during the company’s Annual General Meeting (AGM) on Monday, as reported by brokerage house Arif Habib Limited (AHL), which attended the event.
According to AHL’s briefing, HUBCO is currently preparing a Reserves Report to evaluate lithium exploration potential, with completion expected in 12 to 18 months. The company aims to be well-positioned for the anticipated long-term demand for batteries.
Lithium is primarily used in the production of rechargeable Lithium-ion batteries, essential for mobile phones, laptops, digital cameras, and electric vehicles (EVs).
In addition, HUBCO plans to establish an Electric Vehicle manufacturing plant capable of producing 50,000 EVs annually, with 30% to 40% of the output targeted for export to Australia and Africa. AHL’s report indicated that HUBCO aims to launch completely knocked down (CKD) vehicles across 8-9 variants by December 2025 to March 2026.
Notably, last month, Chinese EV and renewable energy leader BYD entered the Pakistani market through a collaboration with Hub Power Holdings, a subsidiary of HUBCO. This partnership was formalized in March with local partner Mega Conglomerate (Private) Limited.
In June, HUBCO announced that Hub Power Holdings, along with its associated company Mega Motor Company (Private) Limited, is entering the EV sector in collaboration with BYD Auto Industry Company Limited.
For the fiscal year 2023-24, HUBCO reported a profit increase of over 21%, reaching Rs75.29 billion, with earnings per share (EPS) climbing to Rs53.98 compared to Rs44.37 in the previous year. The company boasts a combined installed power generation capacity of 3,581 MW and operates in various sectors, including oil and gas, mining, and industrial services.
