2 major Bangladeshi conglomerates to begin lithium-ion battery production

Demand for lithium-ion batteries is rising in Bangladesh as the use of electric vehicles and renewable energy continues to grow. Seeking to tap into this expanding market, two of the country’s major industrial groups, Walton and PRAN-RFL, have invested in the sector.

Walton will begin producing lithium-ion battery cells next month, while PRAN-RFL Group plans to import lithium-ion cells and manufacture battery packs at its own factory in November.

Walton Hi-Tech Industries, a subsidiary of Walton Group, has established a lithium-ion battery cell manufacturing plant in Chandra, Gazipur.

The factory will have an annual production capacity of 10 million (1 crore) battery cells. These cells will be used in products such as motorcycles, toys, rechargeable lights, rechargeable fans and digital scales. The company has invested Tk 1.13 billion (113 crore) in the project so far.

PRAN-RFL Group has established a lithium-ion battery pack manufacturing plant at its industrial park in Habiganj.

The facility will have an annual production capacity of 60,000 battery packs. The company has already invested Tk 250 million (25 crore) in the project.

Bangladesh’s annual market for all types of batteries is currently worth around Tk 150 billion.

Lithium-ion batteries account for Tk 20 billion to Tk 25 billion of this market. This means lead-acid batteries still dominate the sector. However, companies investing in the industry expect lithium-ion batteries to gradually replace lead-acid batteries.

Discussions with industry insiders reveal that demand for batteries is growing rapidly for battery-powered rickshaws, electric bikes and electricity storage in homes, commercial establishments and industrial facilities.

Bangladesh currently has an estimated 150,000 battery-powered rickshaws. The annual market for batteries used in this sector is worth between Tk 16 billion and Tk 18 billion.

Meanwhile, 12,000 to 16,000 electric two-wheelers, or electric bikes, are sold annually. The batteries used in these vehicles represent an annual market worth Tk 6.75 billion to Tk 9 billion.

In addition, batteries used for electricity storage account for an annual market worth Tk 9 billion. Companies entering the sector are targeting these three markets with their investments.

Industry insiders say lithium-ion batteries are lighter and more durable than conventional lead-acid batteries. They also charge in approximately one-third of the time required by lead-acid batteries, making them more energy-efficient. However, lithium-ion batteries cost nearly twice as much as conventional lead-acid batteries.

Walton officials said the company would soon begin producing large prismatic lithium and sodium battery cells for battery-powered auto-rickshaws and solar energy storage systems. The initiative will require an additional investment of Tk 4 billion to Tk 5 billion.

Mahfuzur Rahman, chief business officer (CBO) of the lithium-ion battery project at Walton Hi-Tech Industries, told Prothom Alo that the company had completed the commissioning of the equipment installed to manufacture lithium-ion battery cells.

Trial production will begin this month or next month. The company also plans to launch lithium and sodium battery pack production lines within the next three to four months.

Mahfuzur Rahman added, “Using these production lines, we will begin manufacturing large batteries for easy-bikes, telecommunications equipment, IPS and UPS systems, solar energy storage, cars, electric bikes, forklifts and other applications.”

PRAN-RFL Group, one of Bangladesh’s leading industrial conglomerates, will begin manufacturing lithium-ion battery packs at its industrial park in Habiganj next month using imported cells.

Initially, the company will import lithium cells, along with certain specialised electronic components and other materials, from abroad.

As a result, local value addition in lithium-ion battery pack production will initially stand at around 20 per cent.

However, several senior officials of the group said it planned to increase local value addition to 70–80 per cent by expanding its own manufacturing facilities in the future.

PRAN-RFL Group said it would initially manufacture various types of lithium-ion batteries for easy-bikes, mishuks and electric bikes. The group will market these batteries under its own Blaze brand.

Asked about future plans, Kazi Rashedul Islam, deputy general manager of the RFL Batteries and Cables project, said, “We also plan to manufacture batteries for solar energy storage systems, IPS and UPS systems, backup power systems in the telecommunications sector, and energy storage at industrial facilities.”

He said the company planned to invest an additional Tk 1 billion (100 crore) next year to expand its lithium-ion battery manufacturing plant.

The lithium-ion battery plant of PRAN-RFL Group will initially create employment for 300 people. The company expects to generate jobs for another 500 people next year.

Although the group will initially manufacture lithium-ion batteries for the domestic market, it plans to export lithium iron phosphate (LFP) batteries in the future.

RN Paul, managing director (MD) of RFL Group, said, “Demand for lithium-ion batteries in Bangladesh has so far been met mainly through imports. In particular, finished batteries and the necessary components are imported from China. Once local production begins, imports of finished batteries will decline. This will save a substantial amount of foreign currency.”