Building an EV Battery Value Chain in Pakistan: A Strategic Approach

By Sardar Ahsan Rasheed , insights on TAF...

Introduction

Pakistan holds significant potential in the electric vehicle (EV) value chain, especially given its abundant copper reserves and local manufacturing capabilities. However, realizing this potential requires a strategic and phased approach, rather than relying solely on external investments and large-scale projects. By embracing incremental innovation and leveraging local resources, Pakistan can gradually build a robust EV battery value chain.

Copper: The Foundation of EVs

Copper is a critical component in electric motors and batteries. Pakistan’s Reko Diq region boasts substantial copper ore deposits, presenting an opportunity to become a major player in the global EV market. However, transforming copper ore into usable refined copper involves several key steps:

·       Establishing a concentrator plant

·       Building a smelter

·       Setting up a refinery

This process requires significant time and investment, with a full-scale integrated setup taking 3-5 years to build and costing between $1-2 billion USD. Environmental clearance and energy availability are also crucial factors to consider.

Modernizing Local Industry

The electric motor industry in Gujranwala and Wazirabad currently focuses on low-cost, low-efficiency domestic motors. To pivot to EV-grade motors, the industry needs to:

·       Access rare-earth magnets

·       Precision winding and casting machines

·       High-tolerance manufacturing capabilities

·       Industry certification (e.g., ISO/TS 16949 for automotive)

Achieving this requires investment in research and development (R&D), global partnerships, and skilled labor.

Building a Supportive Ecosystem

A thriving EV battery value chain necessitates more than just raw materials and manufacturing capabilities. Key factors include:

·       Integrating the copper value chain

·       Developing export logistics

·       Ensuring a stable power supply

·       Implementing protective yet innovation-friendly policies

Without addressing these elements, attracting global buyers will remain a challenge.

Leveraging Software Talent

Pakistan’s strong software talent can play a pivotal role in developing battery management systems (BMS) and EV control systems. This requires:

·       Deep collaboration with hardware manufacturers

·       Compliance with international automotive safety and quality standards

·       Prototyping labs and hardware testing facilities

These efforts necessitate ecosystem-level interventions to fully harness the potential of local software expertise.

Phased Roadmap for Success

To build a sustainable EV battery value chain, Pakistan needs a phased roadmap:

1.       Develop the copper value chain from mining to processing and component manufacturing.

2.       Modernize the industry for EV-grade components.

3.       Invest in R&D, certification labs, and industrial training through public-private partnerships.

4.       Create strategic export hubs and establish trade agreements to facilitate global market access.

Conclusion

While Pakistan’s potential in the EV value chain is undeniable, realizing this potential requires a comprehensive and phased approach. By focusing on incremental innovation and leveraging local resources, Pakistan can gradually build a robust EV battery value chain, positioning itself as a competitive player in the global market. Embracing this strategic approach will not only enhance productivity but also contribute to sustainable economic growth and technological advancement in the country.