China’s Ministry of Finance and State Taxation Administration announced a phased rollback of the 13% export VAT rebate for lithium‑ion batteries, cutting it to 6% on April 1 2026 and abolishing it by January 1 2027. The move has spurred a sharp rise in lithium prices and a front‑loading of exports, reshaping the global battery supply chain and leveling the playing field for non‑Chinese manufacturers.
The rebate will be reduced to 6% on April 1 2026.
The rebate will be abolished by January 1 2027.
The policy covers finished battery cells and critical upstream components such as lithium hexafluorophosphate and nickel‑cobalt‑manganese (NCM) oxides.
The rebate had been trimmed to 9% in late 2024, before the 13% rate was announced for elimination.
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