Recently, the Ministry of Finance, the General Administration of Customs, and the State Taxation Administration jointly released a notice. It states that, commencing September 1, 2026, a 2% consumption tax will be imposed on five categories of battery products: lithium-ion batteries, mercury-free primary batteries, nickel-metal hydride batteries, lithium primary batteries, and vanadium redox flow batteries. The tax rate is set to rise to 4% from September 1, 2027. Concurrently, starting April 1, 2027, a 2% consumption tax will be levied on photovoltaic batteries, with this rate increasing to 4% as of April 1, 2028. Nevertheless, from September 1, 2026, to December 31, 2028, advanced new battery types such as sodium-ion batteries, solid-state batteries, fuel cells, and photovoltaic batteries including perovskite, tandem, and gallium arsenide batteries, will be exempt from the consumption tax.