By Muhammad Zulqarnain

Pakistan can make energy storage more affordable, reliable and safer for its rapidly expanding solar market by promoting local battery-pack assembly, domestic battery-management systems and credible testing and certification facilities, experts said.

The proposed Battery Manufacturing Policy 2026–31 seeks to encourage domestic production through reduced sales tax for local manufacturers, accelerated depreciation to lower capital costs and protective duties on imported finished batteries.

Its localisation roadmap targets 70% domestic value addition during the initial implementation phase and 80% thereafter.

The policy comes as growing solar adoption increases demand for energy storage among households, businesses and industries. Batteries allow solar users to store surplus daytime electricity for use at night, during high-tariff periods or when grid supplies are disrupted.

Greater localisation could reduce reliance on imported finished systems while improving access to maintenance, repairs and replacement components.

Speaking to Wealth Pakistan, Sapna V. Khemani, Research Associate at the Centre of Excellence–CPEC under PIDE and the Ministry of Planning and Special Initiatives, said Pakistan was “on the verge of one of the largest industrial opportunities of the energy transition”.

She projected domestic lithium-ion battery demand to rise from around 5–6 gigawatt-hours currently to 40–51GWh by 2031, creating a market valued at $6.5–9 billion.

Khemani said more than 80% of Pakistan’s battery cells, packs and critical materials were imported. The country also lacks commercial-scale cell manufacturing, national battery-testing infrastructure and an organised recycling system.

If current trends continue, the annual battery import bill will reach $2–3.15 billion by the end of the decade, she said.

Rather than immediately focusing on capital-intensive cell manufacturing, Khemani identified battery-pack assembly, battery-management systems, casings and supporting electronics as more practical areas for localisation.

Producing these components domestically could lower costs, retain greater value within Pakistan and build technical capabilities to serve the country’s growing solar-storage market, she added.

Khemani said implementing the proposed policy and securing competitively priced machinery and inputs would be crucial.

She called for appropriate Export Facilitation Scheme coverage for battery manufacturers and a technology-neutral policy capable of accommodating lithium iron phosphate, sodium-ion and other emerging battery technologies.

Pakistan also needed credible facilities to test battery capacity, durability, thermal safety and battery-management system performance, she said.

Economist and energy expert Afia Malik told Wealth Pakistan that Pakistan already had some battery-production activity, but much of it involved importing cells and assembling them into locally produced casings.

Although local pack assembly could provide an initial cost advantage for solar users, she said the industry needed to move beyond simply placing imported cells into locally manufactured boxes.

Malik identified domestic battery-management system design as an achievable next step because it involves electronics and software with lower entry barriers than cell manufacturing.

Localising BMS technology could improve the safety, efficiency and lifespan of batteries used by households, commercial and industrial solar consumers, she said.

Malik also called for a clearer distinction between duties on imported battery components and finished batteries, saying the existing structure provided local assemblers with limited cost advantages.

She urged the Pakistan Standards and Quality Control Authority to develop internationally recognised testing and certification capacity and enforce standards against unsafe battery packs.

Government support, she said, should reward durability and performance rather than assembly volumes, while technical training could help the industry gradually develop capabilities required for more advanced battery manufacturing.

Adeel Ahmed Khan, Corporate Sales Manager at Inverex and a former manager at K-Electric, said locally manufactured battery-storage systems could help reduce costs for solar users by providing a more cost-effective alternative to reliance on grid electricity.

He said local institutional mechanisms should be developed to enforce product-quality standards, while specialised service centres should provide inspection, maintenance, repair and safe disposal throughout the battery lifecycle.

Experts said localisation therefore should not be measured simply by the number of batteries assembled in Pakistan. Developing domestic BMS technology, testing and certification facilities, repair networks and eventually recycling capacity would determine whether local production translates into lower costs and better-quality storage for consumers.

With solar installations expanding and battery demand expected to rise sharply, they said Pakistan has an opportunity to use its growing domestic market to build a battery industry that progressively moves from basic assembly towards higher local value addition and technical capability.

Credit: INP-WealthPk