China waives tax on sodium-ion batteries through 2028

China will begin phasing in a consumer tax on some batteries and photovoltaic cells from September 1, 2026, but it is carving out an exemption for several newer technologies. Until the end of 2028, sodium-ion batteries, solid-state batteries, perovskite cells, tandem cells, and fuel cells will remain tax-free.

The decision was issued by the Ministry of Finance of the People’s Republic of China, the General Administration of Customs, and the State Taxation Administration. For more established technologies, the schedule is different: the tax rate will be 2% from September 2026 and rise to 4% from September 2027.

Products covered by the tax include:

• Mercury-free primary batteries
• Nickel-metal hydride batteries
• Lithium primary batteries
• Lithium-ion batteries
• Vanadium flow systems

Photovoltaic cells are also on the timetable, with a 2% tax starting April 1, 2027, increasing to 4% from April 1, 2028.

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The exemption is not automatic. Chinese authorities said battery and photovoltaic products must comply with China’s national standards for their category to qualify.

For the market, the move is a clear signal. China remains the largest base for the battery industry and electric-vehicle assembly, and companies such as CATL and BYD continue to set the pace for adopting new chemistries. Those newer battery types are still more expensive than mass-market lithium-ion options, making policy support important for scaling.

The same logic applies in solar. Chinese makers of perovskite and tandem modules are already testing production lines for future demand, but commercial volumes remain limited. Mature segments will face the tax sooner, while newer battery technologies get a policy window lasting nearly two and a half years.