China restores 2% lithium-ion battery tax after 11-year exemption

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China has reinstated a 2% tax on lithium-ion batteries starting September 2026 after an 11-year exemption, increasing to 4% in 2027. The tax excludes complete battery energy storage systems and selectively exempts emerging technologies like sodium-ion and solid-state batteries, affecting domestic storage costs but not exports.

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. The post China restores 2% lithium-ion battery tax after 11-year exemption appeared first on pv magazine Global.