China announces it will impose a consumption tax on lithium-ion and solar batteries for the first time in about a decade, ending a long-standing exemption. According to coverage of the planned policy change, the move takes aim at excess capacity and the damaging price competition that has developed in industries central to the clean-energy transition—sectors in which China has expanded rapidly after years of support and subsidies.
Reports say a 2% consumption tax on lithium-ion batteries starts in September, with the rate set to increase later to 4%. The policy is also described as covering solar-related batteries, though details on specific coverage are not fully uniform across accounts.
One report notes that sodium batteries remain exempt under the new framework, distinguishing them from lithium-ion and solar batteries. The overall policy direction is consistent across sources: Beijing adjusts tax rules to address market conditions, rather than maintaining the previous tax-free treatment for these battery categories.
