Panel constituted by PM approves LFP battery technology for localisation

ISLAMABAD: A working group constituted by the Prime Minister to devise and draft the National Lithium-Ion Battery Manufacturing Policy 2026–2031 for the localization of the lithium-ion batteries has initially approved lithium, iron, and phosphate (LFP) battery technology for localization.

This was announced by the Special Assistant to the Prime Minister (SAPM) on Industries and Production, Haroon Akhtar Khan, at a meeting held here on Tuesday to finalize the Lithium-Ion Battery Policy. The meeting was attended by Secretary, Industries and Production, Saif Anjum, CEO of the Engineering Development Board (EDB), Hammad Mansoor, and representatives of the private sector.

As per the initial draft of the policy, a copy of which is available with Business Recorder, domestic mineral presence of lithium, graphite, phosphate, iron, and manganese was identified across multiple regions; commercial reserves are unquantified. According to the draft prepared on the information provided by the Geological Survey of Pakistan (GSP), the early viability of Lithium (up to 2.15 percent Li), beneficial graphite (towards battery-grade), and phosphate deposits was validated.

Formal action taken: Officially, the ministry has requested the GSP for authenticated reserves and subsequent grades strategic alignment.

In the next steps, the Ministry is waiting for the response of GSP-validation on location, grade, and quantities (Li, graphite, nickel, cobalt, manganese, iron, phosphorus). Review extraction, beneficiation, and achievable battery-grade purity to define supply roadmap: Phased domestic supply plan covering gaps, import reliance, JV opportunities, and required policy actions.

Under B2B China engagements, 12 agreements worth USD558 million, focusing also on lithium-ion battery assembly/manufacturing for value addition, on which meetings with federal/provincial mining/mineral departments have also been conducted.

The meeting was informed that, under B2B cooperation with China, several million-dollar agreements have been signed, including those related to battery manufacturing. Additionally, an important meeting of federal and provincial mineral departments is expected to be held soon to further advance coordination in this sector.

Haroon Akhtar Khan directed the EDB to ensure that the new-generation energy storage policy is fully aligned with national energy security objectives. He further shared that consultations with global experts are underway, reiterating the government’s commitment to transforming Pakistan into a regional hub for battery manufacturing.

The SAPM stressed the need for a comprehensive framework for battery testing, certification, and recycling to ensure sustainability and environmental protection. During the meeting, a detailed review was conducted on the progress of the National Lithium-Ion Battery Manufacturing Policy 2026–2031.

Haroon Akhtar stated that, in line with the directives of the Prime Minister (PM), the energy storage policy must be integrated with Pakistan’s national energy security framework. He emphasized that in accordance with the vision of the current government led by Prime Minister Shehbaz Sharif, partnerships with the private sector and global investors are key to building a sustainable energy future for Pakistan.

The SAPM highlighted that, on the instructions of the Prime Minister, a dedicated Working Group for the National Battery Policy was constituted on 12 December 2025. The committee briefed the meeting that the policy includes phased localization, tariff reforms, and performance-based incentives to promote domestic manufacturing and investment.

Haroon Akhtar Khan informed participants that the policy has been developed with the support of federal and provincial ministries, industry stakeholders, universities, and international experts. He also noted that Pakistan possesses reserves of phosphate, iron, and manganese in various regions, which can be leveraged to support battery manufacturing and reduce import dependence.

Emphasizing quality and safety, the SAPM said that the role of the Pakistan Standards and Quality Control Authority (PSQCA) is critical in ensuring global standards for battery safety and performance. He added that lithium-ion batteries have wide-ranging applications, including solar energy systems, electric vehicles, backup power solutions, and mobile towers.

Haroon Akhtar Khan stressed the need for a comprehensive framework for battery testing, certification, and recycling to ensure sustainability and environmental protection.

Copyright Business Recorder, 2026