China will impose consumption tax on lithium-ion batteries from September 1, 2026, ending an 11-year exemption for that product category. The announced change also affects how buyers assess factory cost and product mix.
Sodium-ion, solid-state and fuel cells retain exemptions through December 31, 2028. Specified advanced PV cells, including perovskite, tandem and gallium-arsenide technologies, also remain exempt during that period when relevant national-standard and initial-test requirements are met.
Procurement teams should ask suppliers to separate tax exposure from quoted base pricing and to document any claimed exemption eligibility. Contracts benefit from clear price-adjustment and compliance clauses where delivery extends beyond the policy start date.