Kohinoor Energy Makes Big Battery Move, Eyes 1,000MWh Pakistan Venture

LAHORE: Pakistan’s solar revolution is opening a new industrial front. Kohinoor Energy Limited has joined hands with China’s Hebei Juhang Energy Technology Group to explore local production of lithium-ion battery packs and energy storage systems, with the proposed venture ultimately targeting annual capacity of as much as 1,000 megawatt-hours (MWh).

The listed power producer signed a memorandum of understanding with China's Hebei Juhang Energy Technology Group. The MOU records both sides' intention to consider a joint venture to assemble, manufacture, market and sell lithium-ion battery packs, battery energy storage systems and associated electrical equipment.

The partners envisage initial annual capacity of about 50–100 megawatt-hours, possible expansion to 300–500MWh, and later 700–1,000MWh. Market demand, business performance and other conditions will govern each step, the company said.

Also Read: Saigols Group, China Battery Giant Launch Battery Manufacturing Venture in Pakistan

The MOU binds neither party. Any deal still needs further evaluation, due diligence, applicable approvals and definitive agreements, according to the filing, which company secretary Javed Manzoor signed.

Juhang already knows the family. In June, the Saigols Group, which founded KEL alongside Japan's Toyota Tsusho, signed an MOU with Juhang covering lithium-ion batteries, energy storage systems and EV charging infrastructure. Thursday's filing brings that relationship to a listed company for the first time.

Juhang, founded in 2015, runs a 70,000-square-metre site in Xingtai in China's Hebei province, according to its website. The company lists complete electrical equipment, cabinets, charging piles and energy storage stations among its products, and puts its total investment at 260 million yuan.

KEL's existing business runs against a clock. The company operates a furnace oil-fired plant near Raiwind, Lahore, with net capacity of 124MW. Its 30-year power purchase agreement with CPPA-G was due to end on June 19, 2027. A February 2025 amendment added 161 days, pushing the expiry to November 27, 2027, to settle disputed liquidated damages, with no capacity payments during the extension. KEL also accepted the government task force's switch to a hybrid take-and-pay tariff.

The company describes itself as debt-free. Chase Securities reported last year that KEL was exploring post-2027 options, including bilateral contracts under the CTBCM market model and direct deals with distribution companies. KEL's solar business also signed an MOU with Sundar Industrial Estate to offer 1MW solar plants to member companies on rental payments.

The filing does not link the battery venture to the PPA's expiry. KEL has not disclosed how much it might invest or how the partners would share the venture.

Policy currents run in the idea's favour. The government's Battery Manufacturing Policy 2026–2031 sets out phased localisation targets, tariff reforms and performance-based incentives. Energy Minister Sardar Awais Ahmad Khan Leghari has called battery storage essential for shifting surplus daytime solar power to peak hours and cutting reliance on imported fuels.

That argument carries a twist for KEL. A company built on furnace oil now wants to explore the very hardware ministers see as a way to cut fuel imports.