Why are Chinese lithium battery manufacturers raising prices starting September 1, 2025?

Chinese lithium battery manufacturers are raising prices starting September 1, 2025, to pass on the upcoming 2% domestic consumption tax on lithium-ion batteries, which takes effect on September 1, 2026; as stated in the news, companies like Lishen Battery and EVE Energy have issued price adjustment notices specifying that they will add a 2% charge to cover the anticipated consumption tax cost on domestic sales, along with associated surcharges such as urban construction tax and education surcharge for domestic transactions, while export products will follow the 'tax first, refund later' policy after customs clearance.

How will the new consumption tax affect domestic versus export sales of lithium batteries in China?

For domestic sales, manufacturers including Lishen Battery and EVE Energy will add a 2% consumption tax cost — plus city construction tax and education surcharges — to the original tax-exclusive supply price effective September 1, 2025, thereby shifting the tax burden to downstream buyers; for export sales, the tax is still levied at the factory level upon shipment, but exporters can subsequently apply for a full tax refund under China’s official 'tax first, refund later' policy after completing export customs declaration, meaning the economic burden falls only on domestic market transactions.

Energy Insider: Domestic Lithium Battery Tax Imminent as Manufacturers Raise Prices; Iran Restricts Hormuz Strait Route to Commercial Vessels

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Energy Insider: Domestic Lithium Battery Tax Imminent as Manufacturers Raise Prices; Iran Restricts Hormuz Strait Route to Commercial Vessels — ChemBrief Topics

Energy Insider: Domestic Lithium Battery Tax Imminent as Manufacturers Raise Prices; Iran Restricts Hormuz Strait Route to Commercial Vessels

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