Kohinoor Energy Limited (PSX: KOHE) has joined hands with China’s Hebei Juhang Energy Technology Group to explore setting up a battery assembly and manufacturing venture in Pakistan.
The two companies signed a nonbinding memorandum of understanding (MoU), according to a material disclosure submitted to the Pakistan Stock Exchange on October 1.
The proposed venture will focus on assembling, manufacturing, marketing and selling lithium ion battery packs, battery energy storage systems and related electrical equipment.
The project is expected to be developed in stages. The initial facility could have an annual capacity of around 50 MWh to 100 MWh.
Depending on market demand and business performance, the partners could later increase capacity to 300 MWh to 500 MWh and eventually reach 700 MWh to 1,000 MWh annually.
The proposed project would take Kohinoor Energy into battery assembly and energy storage for the first time. The company currently operates a 124 MW power plant in Lahore and sells its electricity to the Water and Power Development Authority.
The planned facility would manufacture lithium ion battery packs, battery energy storage systems and other related energy storage products and electrical equipment.
Kohinoor Energy clarified that the MoU is not binding. The proposed transaction will require further assessment, due diligence, regulatory approvals and final agreements before it can proceed.
The company said the actual production capacity at each stage will depend on market demand, business performance and other relevant conditions.
Kohinoor Energy will make further disclosures to the PSX as the project develops.
The proposed venture comes as demand for battery storage grows in Pakistan. Rising electricity costs, cheaper solar equipment and changes to the net billing framework have encouraged households and businesses to consider battery storage.
Imports of lithium ion battery packs have also increased sharply as consumers and businesses look for ways to store electricity and reduce their dependence on the grid.
