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China leads next-gen EV battery development
China is heading towards developing a new generation of electric vehicle batteries by introducing sodium and solid-state technologies. Starting September 2026, the government will impose a 2% consumption tax on lithium-ion batteries, which will increase to 4% after one year. However, sodium and solid-state batteries will be exempt from this tax until the end of 2028 to strengthen their position in the market. These measures aim to reduce costs and accelerate the adoption of new battery technologies. Major companies like BYD and CATL are preparing to launch pilot production lines, and China is working on developing its first official global standard for these technologies, potentially reshaping the future landscape of electric vehicle battery manufacturing.
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