China to impose consumption tax on lithium batteries, exempting sodium-ion and solid-state cells — Explained
Lithium-ion batteries will be subject to a 2% consumption tax from September 1, 2026, with the rate rising to 4% from September 2027.
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Understanding china’s battery tax shift is a strong push for automakers to make their own cells, CPCA’s Cui says
Automakers that produce batteries in-house can avoid or deduct the consumption tax, while those buying externally will bear extra costs, Cui said.
