China’s lithium battery market is approaching an important policy milestone. From September 1, 2026, a 2% consumption tax will apply to lithium primary batteries, lithium-ion rechargeable batteries and certain other battery products. The rate is scheduled to increase to 4% from September 1, 2027.
For solar battery wholesalers, solar installers, distributors and project contractors, this policy deserves attention because China remains an important manufacturing base for solar batteries, LiFePO4 batteries, battery cells and battery energy storage systems (BESS).
However, the new tax does not necessarily mean that every solar battery product will increase by exactly 2%. The actual impact will depend on manufacturers’ pricing strategies, contracts, delivery schedules, settlement arrangements and commercial negotiations.
Post time: Aug-31-2026