Why are multiple Chinese battery manufacturers raising prices starting September 1, 2024?

Multiple Chinese battery manufacturers, including Lishen Battery and EVE Energy, are raising prices starting September 1, 2024, to pass on the upcoming 2% domestic consumption tax on lithium-ion batteries, which takes effect on September 1, 2026 — the price adjustments are preemptive measures to absorb and transfer the anticipated tax burden to downstream customers in the supply chain.

How are Lishen Battery and EVE Energy implementing the consumption tax cost recovery in their pricing?

Lishen Battery’s August 18, 2024, price adjustment notice states it will add a 2% consumption tax cost to all products’ original tax-exclusive supply prices effective September 1, 2024, plus additional surcharges for urban construction tax and education surcharges; EVE Energy, in its late-July notice, similarly applies a 2% consumption tax cost increase to all domestic sales from September 1, 2024, while export products undergo tax collection at the factory level and later qualify for refund under China’s 'tax first, then refund' policy upon customs clearance.

Multiple Battery Manufacturers Raise Prices Ahead of Domestic Lithium Battery Consumption Tax

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Multiple Battery Manufacturers Raise Prices Ahead of Domestic Lithium Battery Consumption Tax

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