Broker analysts say a consumption tax on lithium batteries was widely
anticipated and industry expects limited impact. Battery cell prices are about
0.35–0.40 yuan/Wh; a 2% consumption tax would add roughly 0.007–0.008 yuan/Wh. A
2–4% tax range corresponds to an equivalent 12,000–25,000 yuan/ton effect on
lithium carbonate. Lithium carbonate prices have been rising and orders remain
supply-constrained, so the tax’s incremental burden is small. For end buyers, a
2–4% levy would raise per‑vehicle costs by only a few hundred yuan, well below
prior lithium-driven cost swings. CPCA secretary-general Cui Dongshu said the
move signals that “parity between oil and electricity” is being established;
together with earlier purchase‑tax cuts and the removal of vehicle-and-vessel
tax exemptions, the sector’s tax preferences are being phased out.
