Kohinoor Energy Limited (PSX: KOHE) and China’s Hebei Juhang Energy Technology Group have agreed to explore a joint venture for lithium-ion battery assembly and manufacturing in Pakistan, marking a potential expansion of the country’s energy storage industry.
The two companies signed a non-binding memorandum of understanding (MoU) on October 1, 2026, according to a material disclosure submitted to the Pakistan Stock Exchange (PSX).
Under the proposed partnership, the companies will examine opportunities to assemble, manufacture, market and sell lithium-ion battery packs, battery energy storage systems (BESS), related products and associated electrical equipment in Pakistan.
The project is expected to be developed in phases. The initial stage is planned with an annual production capacity of approximately 50 MWh to 100 MWh.
Depending on market demand, business performance and other conditions, the proposed facility could later be expanded to around 300 MWh to 500 MWh annually.
A further expansion could eventually take the capacity to approximately 700 MWh to 1,000 MWh per year, according to the details disclosed by Kohinoor Energy.
The proposed venture would represent Kohinoor Energy’s entry into battery assembly and energy storage manufacturing. The company currently operates a 124-megawatt power plant in Lahore and sells the electricity generated by the facility to the Water and Power Development Authority (WAPDA).
Battery energy storage has become increasingly important in Pakistan as households, businesses and industrial users look for ways to manage electricity costs and improve energy reliability.
The growing adoption of solar power has also increased interest in lithium-ion batteries, which can store electricity generated during periods of high solar production for use at other times.
Pakistan’s lithium-ion battery market has expanded rapidly in recent months. Rising electricity costs, lower solar equipment prices and changes in the country’s net billing framework have contributed to stronger demand for energy storage solutions.
The proposed Kohinoor Energy and Hebei Juhang partnership could therefore create a local manufacturing base for battery packs and battery storage systems rather than relying entirely on imported products.
However, the project is not yet a finalized investment or manufacturing agreement. Kohinoor Energy has emphasized that the MoU is non-binding.
The proposed transaction remains subject to further evaluation, due diligence, applicable regulatory approvals and the signing of definitive agreements between the parties. Production targets could also change depending on market conditions and the performance of the business.
If the project proceeds as planned, its phased expansion could establish a significant battery manufacturing and energy storage operation in Pakistan, potentially serving the country’s growing demand for lithium-ion batteries and grid-connected storage solutions.
