Chinese firm plans $15 million dry battery manufacturing facility in Faisalabad

Chinese company Dongjin Group plans to establish a $15 million dry battery manufacturing facility in Allama Iqbal Industrial City near Faisalabad to cater to rising demand driven by electric vehicles and solar energy systems.

The investment agreement for the project was signed with the Punjab Board of Investment and Trade. A PBIT official said the Chinese firm decided to invest in Pakistan after observing growing demand for batteries linked to the expansion of electric vehicles and solar energy solutions.

He said the project was expected to generate industrial and economic activity while supporting technology transfer in the country.

PBIT official said the manufacturing facility would also benefit related industries, including electronics, automotive components, packaging, chemicals and engineering support services, besides creating employment opportunities in Faisalabad and nearby areas.

Under Pakistan’s Special Economic Zone incentives, the Chinese company will receive a 10-year income tax holiday and a one-time exemption from customs duties and taxes on imported plant and machinery.

The PBIT official said the board would continue supporting the company throughout the investment process.

Stakeholders in the automobile and solar sectors said establishment of advanced battery manufacturing facilities could help Pakistan meet increasing domestic demand for batteries used in renewable energy systems and electric vehicles.