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Resumption of Consumption Tax on Lithium Batteries: An Analysis of Policy Rationale and Industry Impacts

Resumption of Consumption Tax on Lithium Batteries: An Analysis of Policy Rationale and Industry Impacts

In July 2026, the Ministry of Finance and other departments issued an announcement stating that, effective September 1, 2026, consumption tax will be reinstated on lithium-ion batteries and similar products, initially set at 2% and raised to 4% starting September 2027. Meanwhile, emerging battery technologies such as sodium-ion and solid-state batteries will remain exempt until the end of 2028. This move marks the official end of more than a decade of tax exemptions for lithium batteries. At present, China accounts for over 80% of global lithium‑battery shipments, and the industry has reached a high degree of maturity. The policy shift—from “supporting expansion” to “guiding strength”—aims to steer the sector away from low‑price competition and promote equal treatment between gasoline and electric vehicles. In terms of impact, the 2% tax rate adds roughly several hundred yuan to the cost per vehicle, with varying degrees of pass‑through: leading companies can absorb part of the burden by passing it along to downstream customers, while second- and third-tier manufacturers face margin pressure, accelerating industry consolidation. Automakers that produce their own batteries can avoid the tax through internal transactions, whereas those relying on externally sourced cells will see their costs rise rigidly. Over the long term, this policy is expected to benefit leading enterprises with technological expertise and integrated production capabilities.

25

2026

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08

The Salvation of Battery Life: How Wearable AI Can Bridge the “Last Mile” of Lithium‑Ion Batteries

The Salvation of Battery Life: How Wearable AI Can Bridge the “Last Mile” of Lithium‑Ion Batteries

Lithium‑battery solutions for wearable AI devices have transcended the confines of mere electrochemistry, evolving into a systems‑engineering endeavor that spans materials science, industrial design, thermodynamics, and AI algorithms. Future breakthroughs in battery life will hinge not only on the adoption of new materials but also on the deep integration of battery management systems with AI computing demands. Only then can wearable AI devices truly break free from power constraints and become seamless extensions of human senses.

03

2026

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08

The “Theranos scandal” in the battery industry has finally come to a close: Donut’s all-solid-state batteries were found to be fraudulent, with voltage‑time curves and swelling‑behavior data exposing the truth.

The “Theranos scandal” in the battery industry has finally come to a close: Donut’s all-solid-state batteries were found to be fraudulent, with voltage‑time curves and swelling‑behavior data exposing the truth.

The all-solid-state battery developed by the Finnish startup Donut Lab—once hailed at the 2026 International Consumer Electronics Show (CES) as a “battery revolution” and widely covered by countless media outlets—has recently been officially debunked as a hoax by a consortium of battery researchers and more than 20 independent experts. The so‑called revolutionary all-solid‑state product is, in essence, nothing more than an ordinary lithium‑ion battery.

10

2026

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06

Ning Wang’s Electrolyte Bet: Two Long-Term Contracts and a Major Realignment

Ning Wang’s Electrolyte Bet: Two Long-Term Contracts and a Major Realignment

09

2026

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06

Leading High-Quality Development of the Lithium-Ion Battery Industry through Green Design: An Analysis of the Lithium-Ion Battery Section in the “Guidelines for Green Product Design in the Industrial Sector (2026 Edition)”

Leading High-Quality Development of the Lithium-Ion Battery Industry through Green Design: An Analysis of the Lithium-Ion Battery Section in the “Guidelines for Green Product Design in the Industrial Sector (2026 Edition)”

22

2026

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04

Ning Wang Hits All-Time High! CATL’s Market Cap Nears RMB 2 Trillion

Ning Wang Hits All-Time High! CATL’s Market Cap Nears RMB 2 Trillion

14

2026

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04

Both volume and price are rising—lithium-battery exports have boomed this year!

Both volume and price are rising—lithium-battery exports have boomed this year!

13

2026

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04

EVE Energy Makes a Bold Investment of RMB 11 Billion Overnight! Two Major Energy Storage Bases Launched in Fujian and Jiangsu, with Year-to-Date Capacity Expansion Exceeding 230 GWh

EVE Energy Makes a Bold Investment of RMB 11 Billion Overnight! Two Major Energy Storage Bases Launched in Fujian and Jiangsu, with Year-to-Date Capacity Expansion Exceeding 230 GWh

09

2026

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04

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