- China is phasing out VAT export rebates for battery products, reducing them from 9% to 6% in 2026 and eliminating them in 2027.
- Battery exporters are renegotiating contracts and may raise prices by 2–9% to offset higher costs, though strong global demand is expected to limit the impact.
- Some overseas buyers are accelerating purchases before the rebate reduction, while countries like India are increasing local battery production.
- Full substitution of Chinese batteries is unlikely soon due to higher costs and limited capacity in other regions.
- The policy aims to curb overcapacity and restore rational pricing in China’s battery industry.
Source: m.jiemian.com
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
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