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中文September has brought major shifts across the lithium battery industry: a renewed consumption tax on lithium cells is driving a wave of price hikes, lithium carbonate prices have pulled back after a sharp rally, and solid-state batteries are moving from the lab into mass production. Here are four key developments to watch.
1. Policy: consumption tax returns, price hikes spread
In July, China’s Ministry of Finance, the General Administration of Customs and the State Taxation Administration announced that lithium-ion batteries and several other battery types would be subject to a 2% consumption tax from September 1, 2026, rising to 4% from September 1, 2027. Solid-state and sodium-ion batteries remain exempt until the end of 2028.
Following the announcement, leading makers including EVE Energy and Lishen have added the 2% tax cost to their supply prices from September 1, with smaller players following suit. Based on an average ESS cell price of around RMB 0.36/Wh, the new tax adds roughly RMB 7 million per GWh. Underlying the hikes is a tight supply–demand balance: average capacity utilization in the energy-storage battery segment now exceeds 90%, and mainstream 314Ah ESS cells are in short supply, strengthening battery makers’ pricing power.
2. Market: lithium carbonate retreats from its peak
After rallying to around RMB 160,000/tonne in early September, battery-grade lithium carbonate turned lower. SMM data shows spot prices fell to RMB 142,800/tonne on September 8, down about 9% from RMB 159,300/tonne at the end of August; the futures benchmark closed near RMB 142,000/tonne on September 9. Market watchers see the “golden September–silver October” season as a key window for gauging the supply–demand balance, with the price center possibly drifting lower.
3. Technology: solid-state batteries reach mass production
At the 2026 World Power Battery Conference in Yibin (September 3), eight notable innovations were unveiled, including ~10-minute ultra-fast charging cells, a hybrid solid–liquid battery at 350Wh/kg, and high-safety ESS cells scaled from 300Ah to 600Ah.
Solid-state commercialization is accelerating: Taiwan’s ProLogium announced on September 2 that its Gen 3.5 lithium ceramic all-solid-state cell — 381Wh/kg, TÜV-certified, with partners including Mercedes-Benz and NIO — has entered mass production at its gigafactory. CATL said on September 9 that it expects small-batch production of all-solid-state batteries in 2027.
4. Outlook
On the demand side, China’s September battery output is projected to exceed 330GWh, up about 9% month-over-month, pointing to healthy restocking ahead of the peak season. For buyers, near-term cell prices still face upward pressure — locking in long-term agreements and managing inventory cadence may be prudent — while the tax-exemption window for solid-state and sodium-ion technologies creates a favorable environment for adopting next-generation solutions.
