China will levy a 2% consumption tax on battery products including lithium primary batteries and lithium-ion batteries from September 1, the statement said. The rate will rise to 4% on ⁠September 1, 2027.

A 2% consumption tax will be imposed on solar cells starting April 1, 2027. The rate will rise to 4% after a year.

Consumption tax will be exempted for products including sodium-ion batteries, solid-state batteries, fuel cells and certain advanced types of solar cells from September 1, 2026 to the end of 2028.

China ‌currently ⁠imposes a 4% consumption tax on battery products, but lithium-ion batteries, solar cells, fuel cells and lithium primary batteries are exempted, according to regulations released in 2015.

Lithium-ion batteries are ⁠rechargeable batteries used in a wide range of products, from electric vehicles to smartphones and laptops.

Chinese policymakers have been trying ⁠to rein in industrial overcapacity across sectors including photovoltaics and EV batteries amid weak domestic demand.

The policy move will ⁠help to upgrade industry and protect the environment, state-run news agency Xinhua said, citing industry insiders.