Pakistan’s growing solar power market is creating new opportunities for local lithium-ion battery assembly, with several Pakistani companies partnering with Chinese manufacturers to develop domestic production capacity.
The shift comes as imports of Chinese solar panels and rechargeable batteries increase. However, falling global battery prices and China’s production capacity could create challenges for companies entering the market.
Pakistani Companies Partner with Chinese Firms
Karachi-based ME Solar Energy is setting up a battery assembly plant through a partnership with China’s Contemporary Amperex Technology Co. Ltd. (CATL).
According to ME Solar CEO Zubair Ahmed, the project involves a $15 million investment and technical support from CATL. The plant is expected to become operational in March and have the capacity to assemble 10,000 five-kilowatt lithium-ion batteries each month.
Other Pakistani companies are also exploring local assembly.
Treet Battery, a subsidiary of Treet Corporation, plans to establish an assembly plant with China’s Contemporary Nebula Technology Energy. Meanwhile, Islamabad-based independent power producer Kohinoor Energy plans to partner with China’s Hebei Juhang Energy Technology Group.
These projects aim to capture a share of Pakistan’s growing battery market, which currently relies heavily on imports.
Battery Imports Rise as Solar Adoption Grows
United Nations data cited in the report shows that Pakistan’s imports of lithium-ion electric accumulators rose nearly threefold to $171 million in 2025, compared with $60 million in 2024. China accounted for $167 million of the total.
Broader trade data compiled by UK-based energy think tank Ember puts Pakistan’s imports of batteries from China at $294.3 million in 2025, up from $147.1 million in 2024. Imports in this broader category reached $537.2 million during the first eight months of 2026.
Pakistan’s solar expansion is helping drive this demand. Ember data shows the country imported a record 16.86 gigawatts of Chinese solar panels in 2025, more than double its 2023 volume.
Pakistan ranked as China’s second-largest solar panel importer in 2025, rising from fifth place in 2023, according to Ember.
Higher electricity tariffs and concerns about grid reliability have encouraged households and businesses to install solar systems. Batteries allow users to store electricity for use when solar generation is low.
Local Assembly Could Create Industrial Opportunities
The Pakistan Solar Association has identified assembly, testing, engineering and system integration as potential areas for domestic industrial development.
Energy market strategist Osama Rizvi told Nikkei Asia that Pakistan’s battery market could offer a multibillion-dollar industrial opportunity. He said capturing part of the existing import market could support skilled employment and local industry.
Domestic assembly could also create opportunities in system installation, after-sales services, maintenance and warranty support.
Falling Prices Create Challenges
Despite growing demand, declining battery prices could limit revenue for new assembly businesses.
ME Solar CEO Zubair Ahmed said the average local price of a basic five-kilowatt battery had fallen by half since 2024 to around $720. He attributed the decline to lower global prices and excess production in China.
Ahmed estimated that the price could fall by a further 18% to approximately $590 if the new assembly plant becomes operational in Pakistan.
Lower prices could make batteries more affordable for consumers, but they may also put pressure on manufacturers and assemblers to control costs and maintain competitive margins.
Experts Caution Against Full-Scale Cell Manufacturing
Experts say Pakistan’s near-term opportunity lies in assembly and integration rather than producing lithium-ion battery cells from scratch.
Khalid Waleed, a research fellow at the Sustainable Development Policy Institute, told Nikkei Asia that cell manufacturing requires substantial capital, technical expertise and economies of scale.
Economist Vaqar Ahmed similarly argued that Pakistan’s market may not yet support the investment required for full-scale cell production.
He identified battery assembly, system integration, warranties and after-sales services as more realistic starting points.
For Pakistan, the challenge will be to turn rising demand into lasting industrial capacity while managing costs, developing technical skills and building local expertise beyond basic assembly.
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