The lithium battery industry's pricing system faces a new variable as leading companies take the lead in adjusting prices.

On July 17, the Ministry of Finance, General Administration of Customs, and State Taxation Administration jointly issued the "Announcement on Adjusting Consumption Tax Policies for Certain Batteries" (hereinafter referred to as the "Policy"). The announcement states that starting September 1, 2026, consumption tax will be levied at a rate of 2% on mature battery products such as lithium-ion batteries, rising to 4% on September 1, 2027. Meanwhile, emerging technologies including sodium-ion batteries and solid-state batteries will enjoy temporary tax exemptions until December 31, 2028.

Following the release of this new policy reinstating consumption tax on lithium batteries, the industry has been actively discussing how the additional tax burden will be shared across the supply chain. Now, the sector has received its first clear signal: recently, a price adjustment letter titled "Notice on Passing On Consumption Tax Costs," issued by Huizhou EVE Energy Co., Ltd. (hereinafter referred to as "EVE"), circulated widely within the industry.

According to the letter, effective September 1, 2026, EVE and its subsidiaries will add a 2% consumption tax to their domestic sales prices based on the original pre-tax selling prices. For export products, taxes will be uniformly calculated at the factory stage, with refunds applied afterward under the national "collect first, refund later" policy upon completion of customs clearance. Framework orders already signed but not yet delivered will also be subject to this price adjustment.

On July 30, a reporter from Securities Daily interviewed a relevant official from EVE’s securities department regarding the matter. The response was: “Our business department will thoroughly communicate the policy details to customers and steadily advance business coordination. Please refer to official announcements for specific information.”

Previously, EVE stated on investor interaction platforms that the overall impact of the Policy is manageable: first, the company will carefully analyze and plan to share the new tax burden through the upstream and downstream supply chain; second, it will continue optimizing efficiency and improving internal management precision to strengthen its financial buffer; third, EVE has proactively invested in sodium-ion and solid-state battery technologies, which will benefit from tax exemptions in the medium to long term. In the long run, this policy may accelerate the elimination of outdated production capacity, benefiting industry consolidation and increasing market share for leading players.

Additionally, Hunan Yueneng New Energy Battery Materials Co., Ltd. (hereinafter referred to as "Hunan Yueneng"), a leading phosphate iron lithium manufacturer, recently announced that starting August 1, all its phosphate iron lithium products would increase in price by 2,000 yuan per ton compared to current execution prices. Hunan Yueneng explained that the price hike is driven by two main factors: first, raw material costs have significantly risen—particularly phosphoric acid—and second, strong downstream demand has created supply pressure for the company.

Industry insiders revealed that due to upward cost pressures cascading down from upstream suppliers, multiple battery and materials manufacturers have already begun communicating price adjustments with key clients. A widespread round of price increases across the entire supply chain is highly likely by the end of the third quarter, with an expected average increase of around 5%.

Under conditions of rising costs and tightening regulations, the extent of price adjustments is expected to vary significantly. Leading companies such as Contemporary Amperex Technology Co. Limited (CATL) and BYD, supported by vertical integration, global production capacity, and long-term raw material lock-in agreements, can offset some costs through large-capacity cells and internal vehicle integration, resulting in relatively moderate price hikes. In contrast, secondary-tier cell manufacturers, who typically rely heavily on exports and operate with lower profit margins, face the most acute cost pressures and are therefore more inclined to raise prices.

So far, apart from EVE, other major battery manufacturers have not publicly released similar price adjustment notices. As the official implementation date of the Policy approaches on September 1, whether more companies follow suit will become a key indicator of how consumption tax impacts the industry’s pricing mechanisms.

Notably, a CATL representative publicly stated, “We have taken notice of the relevant policies and are currently reviewing the detailed terms.” Moreover, the company's net profit per unit has remained generally stable over recent quarters. Although short-term fluctuations have been influenced by raw material price volatility, investments in new businesses, and changes in product structure, overall long-term profitability remains relatively stable.

"Consumption tax is levied at the cell manufacturing stage, directly affecting battery manufacturers' pricing systems rather than upstream raw materials such as lithium salts. In the short term, some automakers and energy storage customers may pre-order and secure production slots to complete deliveries before September 1st, thereby mitigating cost pressures from the new tax. In the medium to long term, the key will be whether the tax burden can smoothly pass through the supply chain. The industry will continue consolidating toward leading companies with integrated cost advantages and high safety manufacturing capabilities. Sodium-ion batteries and solid-state batteries, which enjoy consumption tax exemptions until the end of 2028, will also become important strategies for companies to offset cost pressures and gain competitive differentiation," said Luo Huanta, founder of DADONG Times Think Tank, in an interview with Securities Daily.