“Lithium batteries taxed, sodium batteries exempt”... Chinese government outlines direction for next-generation battery development

*This content was translated by AI.View Original

As the Chinese government imposes a consumption tax on lithium-ion batteries while including sodium-ion batteries in the scope of tax incentives, major battery companies such as HiNa Battery are accelerating efforts to build large-scale production systems aimed at the commercial electric vehicle market.

Through an announcement issued by China’s Ministry of Finance, General Administration of Customs, and State Taxation Administration, a 2% consumption tax will be levied on specific lithium-ion batteries starting September 1 this year, with plans to raise the rate to 4% in the future. In contrast, sodium-ion batteries, all-solid-state batteries, and fuel cells are exempt from the consumption tax until December 31, 2028, provided they meet national standards. Such tax benefits serve as policy support to offset the narrowing price competitiveness of sodium batteries due to falling lithium prices.

Against this policy backdrop, HiNa Battery signed an agreement to build a sodium-ion battery production base with an annual capacity of 10 GWh in Jiangxia District, Wuhan City. As the first phase, a 3 GWh facility will be constructed first, with construction set to begin in early 2027 and initial production to commence within that year. In addition, HiNa Battery is partnering with Qingli Special Vehicle Group to develop sodium-battery-based special-purpose sanitation vehicles, including street sweepers and food waste collection trucks.

Sodium-ion batteries are noted for their excellent low-temperature performance as a key strength. Tests on large commercial vehicles demonstrated that they maintain over 90% of available capacity even in extreme environments at minus 40 degrees Celsius. However, challenges remain, including limits in energy density and the manufacturing process for hard-carbon anode materials, so initial adoption is expected to be active primarily among large commercial vehicles and special-purpose vehicles rather than passenger cars.

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*This content was translated by AI.View Original