Pakistan and China are entering what might be the most consequential chapter of their economic partnership yet — and it runs on batteries.
The two countries are accelerating cooperation across electric vehicles, renewable energy, and energy storage. Pakistan rolled out its New Energy Vehicles Policy 2025–30 earlier this year, and Chinese firms are actively engaging Pakistani businesses on EVs, battery tech, and clean energy. The real test, though, isn’t how many deals get signed. It’s whether Pakistan ends up making things — or just importing them.
The assembly vs. manufacturing gap
- Pakistan’s EV policy identifies opportunities across the value chain: vehicle assembly, lithium-battery packs, charging infrastructure, motor controllers, and power electronics.
- Assembly adds industrial activity. Manufacturing — actually producing components locally — creates supplier networks, jobs, and long-term economic value.
- The difference matters enormously for how much of the green transition’s upside Pakistan captures.
Batteries are the big opportunity
Pakistan’s Consulate General in Guangzhou has flagged rising domestic demand for energy storage and noted the country’s heavy dependence on imported battery cells and packs. Local battery production could serve multiple markets simultaneously:
- Electric vehicles
- Pakistan’s booming solar sector (backup power and grid storage)
- Telecoms and industrial users
In May 2026, a Pakistani delegation visited CALB Group in China to study lithium-ion manufacturing capabilities. In June, Saigols Group and China’s Hebei Juhang Energy Technology Group signed an MoU covering batteries, energy storage, and EV charging.
Where CPEC 2.0 fits in
This green industrial push is part of the wider pivot to CPEC 2.0 — moving away from infrastructure-heavy mega-projects toward technology transfer, business-to-business investment, and value-added manufacturing. A 2026 Pakistan-China B2B conference in Hangzhou covered charging infrastructure, battery storage, and solar technologies, signalling that clean energy has moved from the sidelines to the centre of the relationship.
What would actually make this work?
Four things need to come together:
- Local component production — gradually shifting from importing finished goods to producing batteries, motors, inverters, and power electronics domestically
- Skills and technology transfer — joint ventures that include training, not just equipment
- Standards and testing — without credible certification, Pakistani manufacturers can’t compete for export contracts
- Export ambition from day one — Pakistan’s domestic market alone may not sustain scale; its location gives it access to South Asia, Central Asia, the Middle East, and Africa
Worth watching: Whether the recent wave of MoUs translates into operational factories. Pakistan still needs reliable electricity, efficient logistics, and predictable regulations — none of which China can supply on its behalf. The green supply chain opportunity is real. Whether Pakistan manufactures its way into it, or just imports it in, is still an open question.