Demand for lithium-ion batteries is increasing in Bangladesh as electric vehicle adoption and renewable energy use expand. Walton and PRAN-RFL, two industrial groups in the country, have invested in battery manufacturing to meet demand from electric mobility and energy storage applications.

Walton will begin producing lithium-ion battery cells next month, while PRAN-RFL Group plans to start manufacturing battery packs at its factory in November, using imported cells.

Walton Hi-Tech Industries, a subsidiary of Walton Group, has established a lithium-ion battery cell manufacturing plant in Chandra, Gazipur. Walton Group is a Bangladeshi multinational electronics conglomerate headquartered in Bashundhara Residential Area, Dhaka. The factory will have an annual production capacity of 10 million cells for products including motorcycles, toys, rechargeable lights, rechargeable fans and digital scales. The company has invested BDT 1.13 billion (US$ 9.2 million) in the project so far.

PRAN-RFL Group has established a battery pack manufacturing plant at its industrial park in Habiganj. The conglomerate operates through subsidiaries including Pran Foods, RFL Plastics and Pran-RFL Healthcare. The facility will have an annual production capacity of 60,000 packs, following an investment of BDT 250 million.

Bangladesh's annual market for all types of batteries is worth around BDT 150 billion. Lithium-ion batteries account for BDT 20 billion to BDT 25 billion, with lead-acid batteries making up the remainder. Companies investing in the sector expect lithium-ion technology to gradually replace lead-acid alternatives.

Industry sources report increasing demand for batteries used in battery-powered rickshaws, electric bikes and electricity storage systems in homes, commercial establishments and industrial facilities. Bangladesh has an estimated 150,000 battery-powered rickshaws, generating an annual battery market worth BDT 16 billion to BDT 18 billion. Between 12,000 and 16,000 electric two-wheelers are sold annually, representing a battery market worth BDT 6.75 billion to BDT 9 billion. Energy storage batteries account for a further annual market worth BDT 9 billion. These three segments are the primary targets for companies investing in local production.

According to industry sources, lithium-ion batteries are lighter and more durable than conventional lead-acid batteries and charge in approximately one-third of the time. However, they cost nearly twice as much.

Walton to manufacture battery cells

Walton officials said the company would 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 BDT 4 billion to BDT 5 billion.

Mahfuzur Rahman, chief business officer (CBO) of the lithium-ion battery project at Walton Hi-Tech Industries, said the company had completed commissioning the equipment installed for cell manufacturing.

Trial production will begin this month or next month, while lithium and sodium battery pack production lines are scheduled to launch 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 to manufacture battery packs

PRAN-RFL Group will begin producing battery packs at its Habiganj industrial park in November, initially importing lithium cells, specialised electronic components and other materials from overseas suppliers.

Local value addition is expected to account for around 20% of initial production. Several senior group officials said the company planned to increase this proportion to 70%-80% by expanding its manufacturing facilities.

The group will initially manufacture lithium-ion batteries for easy-bikes, mishuks and electric bikes, selling them under its Blaze brand. 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 BDT 1 billion next year to expand the plant. The facility will initially employ 300 people, with a further 500 jobs expected to be created next year.

PRAN-RFL Group will initially supply the domestic market but 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."