China is introducing a consumption tax on lithium-ion batteries and solar cells, marking a shift for the clean-energy supply chain.
From September 1, 2026, lithium-ion batteries will face a 2% tax, increasing to 4% in September 1, 2027. Meanwhile, sodium-ion, solid-state and fuel-cell technologies will remain temporarily exempt till end of 2028.
A similar policy approach was previously applied to lead-acid batteries as China pushed the industry toward cleaner and more advanced lithium technologies.
For the BESS industry, this could influence equipment pricing, supplier strategies and technology roadmaps, while giving alternative battery chemistries an additional policy advantage.
China to levy consumption tax on lithium-ion batteries and solar cells