China has begun taxing lithium-ion batteries at 2% from Sept. 1, 2026, ending a decade-long exemption; the rate will rise to 4% in September 2027, while emerging technologies such as sodium-ion and solid-state batteries remain temporarily exempt. The tax applies to cells, packs and battery clusters—not complete BESS—and is expected to modestly raise domestic storage costs, while directly exported batteries remain exempt.

China has begun taxing lithium-ion batteries at 2% from Sept. 1, 2026, ending a decade-long exemption; the rate will rise to 4% in September 2027, while emerging technologies such…

China is gradually phasing out tax incentives for electric cars and batteries. Since September, the previously announced consumption tax on lithium-ion