Tuesday, October 27, 2026

MHIL’s reported $2.25 billion Rawalpindi battery plant hinges on policy approval

Pakistan’s military-owned Margalla Heavy Industries Limited (MHIL) has reportedly signed a $2.25 billion agreement to set up a lithium-ion battery manufacturing plant in Rawalpindi. According to Dekhlo, the agreement involves Chinese partners and local investors.

Production timeline tied to government policy

The reported production schedule depends on government approval of a battery manufacturing policy. The plant could begin producing batteries six to eight months after that approval, rather than within a fixed period from the agreement’s signing.

Initial output below planned annual capacity

The report sets out separate figures for initial production and planned annual capacity:

  • Initial production: 200–300 MW.
  • Planned annual capacity: more than 1,000 MW.

Those figures describe a lower starting output than the plant’s planned annual capacity. The reported six-to-eight-month timeline refers to production beginning, not to the facility reaching that capacity.

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