Margalla Heavy Industries Limited (MHIL) has signed a July agreement with Chinese partners and local investors to build a $2.25 billion lithium-ion cell plant at Heavy Industries Taxila in Pakistan’s Rawalpindi district. The Engineering Development Board says the facility could start production six to eight months after the government approves the required policies. Its initial output is listed at 200–300 MW, with planned capacity of 1,000 MW. The Chinese partner has not been named, and details of the investors’ contributions have not been disclosed.
The project is awaiting approval of a lithium-battery manufacturing policy drafted by the government and sent to the Ministry of Industries in March. A separate Auto Policy for 2026–2031 also requires further approvals. The EDB’s battery-storage demand estimates depend on economic growth and the adoption of the proposed EV policy: up to 100,000 MW by June 2030 with GDP growth of at least 5%, or up to 80,000 MW if growth stays below 3%. The board says grid stabilization alone could require 3,000–5,000 MW of storage.
Pakistan currently assembles an estimated 3,000–4,000 MW of batteries but does not make lithium-ion cells; local production is mainly lead-acid batteries. Domestic cells could reduce reliance on imported EV batteries, a significant cost component. Honri Ve is currently the only locally assembled passenger EV on sale, priced at Rs 36 lakh. Any savings would depend on production volumes, raw-material imports, manufacturing efficiency and competitiveness with overseas suppliers. MHIL has not said which sectors the plant will serve first.