China's Battery Consumption Tax Takes Effect — Lithium-Ion Taxed, Solid-State and Sodium-Ion Exempt Through 2028

China ended an 11-year tax exemption for lithium-ion batteries on September 1, 2026, imposing a 2% consumption tax (rising to 4% from September 2027) under rules jointly issued in July by the Ministry of Finance, General Administration of Customs, and State Taxation Administration. Solid-state batteries, sodium-ion batteries, and fuel cells remain exempt through December 31, 2028 — an explicit policy tilt toward next-generation chemistries. The tax takes effect alongside continued pilot-line progress: Sunwoda's dedicated solid-state sample line (0.2 GWh annual design capacity, targeting 400 Wh/kg) reached connectivity in August, and EVE Energy rolled a 60 Ah solid-state prototype off its Longquan line.