ISLAMABAD: Pakistan is moving to localize lithium-ion battery manufacturing under a new national policy framework aimed at strengthening energy security, reducing import dependence and attracting private investment, the government said in a statement on Wednesday.

Batteries have become a strategic priority globally as countries race to secure energy storage for renewable power, electric vehicles and grid stability. The United States, China and the European Union have all rolled out industrial policies and incentives in recent years to localize battery supply chains amid growing geopolitical competition and concerns over dependence on imports.

Pakistan, which faces persistent power shortages and a heavy energy import bill, is increasingly looking to energy storage as it expands solar power, electric mobility and backup systems for telecom infrastructure.

“The energy storage policy must be integrated with Pakistan’s national energy security framework,” the government said in a statement, quoting Haroon Akhtar Khan, Special Assistant to the Prime Minister on Industries and Production, who chaired a meeting on the matter in Islamabad. 

The statement said the Battery Manufacturing Policy 2026–31 includes phased localization targets, tariff reforms and performance-based incentives designed to encourage domestic manufacturing and private sector investment. A dedicated working group for the policy was constituted in December 2025 on the prime minister’s instructions, the statement said.

The meeting approved lithium iron phosphate (LFP) battery technology for initial localization, citing its safety profile, cost effectiveness and suitability for grid storage and electric vehicles. LFP batteries are widely used globally as governments and companies seek alternatives to more expensive lithium-nickel chemistries.

The policy also emphasizes quality, safety and sustainability, assigning a key role to the Pakistan Standards and Quality Control Authority in testing, certification and compliance with international standards. The statement said a framework for battery recycling is also being developed to limit environmental risks.

Pakistan has identified domestic reserves of phosphate, iron and manganese that could support battery manufacturing and reduce reliance on imported raw materials, the statement added. 

The government said several million-dollar agreements related to battery manufacturing have already been signed under business-to-business cooperation with China, and further coordination with federal and provincial mineral departments is expected.

Khan said consultations with global experts were under way, adding that the government aims to position Pakistan as a regional hub for battery manufacturing aligned with national energy security objectives.