SmartPropel
← All news

China’s New Battery Tax Policy to Impact Lithium Battery Costs

A 2% consumption tax applies to specified batteries from September 2026, rising to 4% in 2027.

SmartPropel battery production area, used as an industry illustration

China’s Ministry of Finance, General Administration of Customs and State Taxation Administration announced changes to consumption tax for specified battery products. The announced rate is 2% from 1 September 2026 and 4% from 1 September 2027 for lithium-ion rechargeable batteries and several other listed battery types.

The policy also provides a temporary exemption for certain battery technologies, including sodium-ion and solid-state batteries, subject to the stated conditions. Effects on individual manufacturers and prices depend on product classification, supply chains and applicable tax treatment; a headline rate alone does not establish the final price of a storage system.

Industry illustration from the homepage requirements workbook; not a tax-policy event photo.

Source