China Accelerates Commercialization of Sodium Batteries... Temporary Tax Exemption Until End of 2028

China Accelerates Commercialization of Sodium Batteries... Temporary Tax Exemption Until End of 2028

China is accelerating the commercialization of sodium batteries, with a temporary tax exemption in place until the end of 2028.

Sodium-ion batteries, all-solid-state batteries, and fuel cells will be exempt from consumption tax until December 31, 2028. This move aims to support the sodium-ion battery market, which has been hit by falling lithium prices. Sodium battery manufacturers, including Hina Battery, are expanding their efforts to penetrate the commercial electric vehicle and energy storage system (ESS) markets.

[The Guru = Reporter Gil So-yeon] The Chinese government is accelerating the commercialization of sodium-ion batteries (SIB) to secure a leading position in the next-generation battery market. By exempting SIB and other advanced battery technologies from consumption tax, local companies, led by SIB specialist HiNa Battery, are intensifying their efforts to penetrate the commercial electric vehicle and energy storage system (ESS) markets. Sodium-ion batteries, which are cheaper than lithium batteries and benefit from a stable raw material supply chain, are rapidly emerging as a strong alternative in the next-generation battery market, driven by policy support from the Chinese government.

According to CarNewsChina.com, a Chinese English-language automotive media outlet, on the 2nd, Chinese authorities have decided to fully exempt next-generation battery products, including sodium-ion batteries, all-solid-state batteries, and fuel cells, from consumption tax until December 31, 2028, as part of a restructuring of battery industry policies. The Ministry of Finance, the General Administration of Customs, and the State Taxation Administration jointly announced this consumption tax policy in a joint notice (No. 20) on July 16.

While sodium-ion batteries are exempt from the tax, the tax exemption for lithium-ion batteries, which has been in place for the past 11 years, will be terminated. A 2% consumption tax will be imposed starting September 1 of this year, and the tax rate will increase to 4% starting September 1 of next year.

The Chinese government’s battery consumption tax policy comes at a time when the price competitiveness of sodium-ion batteries relative to lithium iron phosphate (LFP) batteries has somewhat weakened due to falling lithium prices. The tax incentives aim to curb overproduction and price-cutting competition in the lithium battery sector while steering capital and research and development (R&D) toward the sodium-ion and all-solid-state battery ecosystems, which have previously lacked price competitiveness.

With the Chinese authorities maintaining tax benefits for sodium-ion batteries, price competitiveness and the transition to next-generation technologies are expected to accelerate.

China’s leading battery manufacturers, including CATL, the world’s largest battery maker, and BYD, are strategizing to achieve mass production and economies of scale for sodium-ion batteries within the tax incentive period. Their goal is to narrow the gap with existing LFP batteries and significantly advance the timeline for commercialization.

CATL forecasts that the price of sodium-ion batteries will become comparable to that of LFP batteries by the end of this year. Once mass production is fully underway, the production cost of sodium-ion batteries is expected to be more than 30% lower than that of existing LFP batteries. (See The Guru’s report dated August 21, 2026: CATL: “Sodium-ion battery price to drop to LFP level by year-end”)

As a leading sodium-ion battery company, Hina Battery is leveraging the tax incentives for electric vehicles and batteries promoted by the Chinese government to penetrate the commercial vehicle and mobility markets.

Hina Battery is aggressively targeting the commercial electric vehicle and energy storage system (ESS) markets through a 10 GWh long-term supply agreement signed with South Korea's VOLTA and the expansion of its local production base.

On September 2, 2026, Hina Battery signed a strategic cooperation agreement with VOLTA, expanding an existing 15 MWh storage project into a 10 GWh long-term supply contract over five years. Hina Battery will lead cell technology and manufacturing, while VOLTA will handle system integration and market promotion in South Korea.

The company is also expanding its commercialization lines locally. Hina Battery signed an agreement with Jiangxia District in Wuhan to build a 10 GWh sodium-ion battery production line. The first phase will prioritize the construction of a 3 GWh sodium-ion battery cell production line. The large-scale production base will also serve as a joint development site for electric street cleaning vehicles.

The excellent low-temperature performance of sodium-ion batteries in commercial vehicles has been proven. According to FAW Jiefang, the brand under FAW Group dedicated to commercial vehicles, a Chinese-made electric heavy-duty truck equipped with sodium-ion batteries maintained over 90% of its available capacity in tests conducted in an environment of -40°C.

China Accelerates Commercialization of Sodium Batteries... Temporary Tax Exemption Until End of 2028

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China Accelerates Commercialization of Sodium Batteries... Temporary Tax Exemption Until End of 2028

[The Guru = Reporter Gil So-yeon] The Chinese government is accelerating the commercialization of sodium-ion batteries (SIB) to secure a leading position in the next-generation battery market, exempting SIB and other advanced battery technologies from consumption tax. This move is driving local companies, led by SIB specialist HiNa Battery, to intensify their push into the commercial electric vehicle and energy storage system (ESS) markets. Sodium-ion batteries, which are cheaper than lithium batteries and benefit from a stable raw material supply chain, are rapidly emerging as a strong alternative in the next-generation battery market, bolstered by policy support from the Chinese government.

According to CarNewsChina.com, a Chinese English-language automotive media outlet, Chinese authorities have decided to fully exempt next-generation battery products, including sodium-ion batteries, all-solid-state batteries, and fuel cells, from consumption tax until December 31, 2028, as part of a reform of battery industry policies. The Ministry of Finance, the General Administration of Customs, and the State Taxation Administration jointly announced this consumption tax policy in a joint notice (No. 20) on July 16.

While sodium-ion batteries are exempt from the tax, the tax exemption for lithium-ion batteries, which has been in place for the past 11 years, will be terminated. A 2% consumption tax will be imposed starting September 1, and the tax rate will increase to 4% starting September 1 of next year. The Chinese government's battery consumption tax policy is

X-energy, a partner of Doosan and Korea Hydro & Nuclear Power, has completed its safety review in the United States, accelerating the commercialization of its fourth-generation small modular reactor (SMR).

[TheGuru = Reporter Gil So-yeon] X-energy, a U.S. next-generation small modular reactor (SMR) and nuclear fuel developer and partner of Doosan Enerbility and Korea Hydro & Nuclear Power, has received safety approval from the U.S. Nuclear Regulatory Commission (NRC) for its fourth-generation SMR, the Xe-100, accelerating the commercialization of North America’s first grid-scale advanced reactor. Following the passage of an environmental impact assessment in May, the recent approval of the safety review has expedited the permitting process, paving the way for full-scale construction. According to X-energy on the 2nd, the NRC has completed its safety review for the initial deployment of the Xe-100 high-temperature gas-cooled reactor (HTGR). The NRC’s Final Safety Evaluation Report (FSER) provides a comprehensive review of the Xe-100 plant’s key design criteria, preliminary design, safety analysis, probabilistic risk assessment, and research and development program. The report states that the NRC staff concluded that the proposed plant and site meet the safety requirements to commence construction under the U.S. Code of Federal Regulations (10 CFR Part 50). The Advisory Committee on Reactor Safeguards (ACRS), an independent body that advises the NRC Commission, has also separately reviewed the NRC staff’s assessment, and the construction permit

The company is accelerating the commercialization of sodium batteries... Temporary tax exemption until the end of 2028

China is accelerating the commercialization of sodium batteries... Temporary tax exemption until the end of 2028

X-energy, a partner of Doosan and Korea Hydro & Nuclear Power, has completed its safety review in the United States, accelerating the commercialization of its fourth-generation small modular reactor (SMR).

[TheGuru = Reporter Gil So-yeon] X-energy, a U.S. next-generation small modular reactor (SMR) and nuclear fuel developer and partner of Doosan Enerbility and Korea Hydro & Nuclear Power, has received safety approval from the U.S. Nuclear Regulatory Commission (NRC) for its fourth-generation SMR, the Xe-100, accelerating the commercialization of North America’s first grid-scale advanced reactor. Following the passage of the environmental impact assessment in May, the recent approval of the safety assessment has expedited the permitting process, paving the way for full-scale construction. According to X-energy on the 2nd, the NRC has completed its safety review for the initial deployment of the Xe-100 high-temperature gas-cooled reactor (HTGR). The NRC’s Final Safety Evaluation Report (FSER) provides a comprehensive review of the Xe-100 plant’s key design criteria, preliminary design, safety analysis, probabilistic risk assessment, and research and development program. The report states the NRC staff’s conclusion that the proposed plant and site meet the safety basis required to commence construction under the U.S. Code of Federal Regulations (10 CFR Part 50). The Advisory Committee on Reactor Safeguards (ACRS), an independent body that advises the NRC Commission, has also separately reviewed the NRC staff’s assessment, and the construction permit

Posco International's nuclear power alliance, US-based Centrus, ships its first new-generation centrifuge from Ohio

[The Guru = Reporter Jeong Ye-rin] U.S. uranium enrichment company Centrus Energy (hereinafter Centrus) is accelerating the expansion of its commercial low-enriched uranium (LEU) production facility using its in-house produced centrifuges. With the procurement of key equipment beginning for the local enrichment facility under joint investment consideration by POSCO International, momentum is expected to build for investment discussions aimed at entering the U.S. nuclear fuel supply chain. According to Centrus on the 31st, the company produced and shipped its first new-generation centrifuge on the 29th from its Oak Ridge manufacturing plant in Tennessee for final assembly at the Piketon uranium enrichment facility expansion site in Ohio. By also establishing a domestic parts supply chain, the company achieved two targets originally scheduled for year-end ahead of schedule. Centrifuges are equipment that rotate gaseous uranium hexafluoride at high speeds to increase the concentration of uranium-235 required for nuclear fuel. Centrus plans to connect multiple centrifuges after final assembly in Ohio to build a cascade, which is an enrichment system. The company aims to gradually increase production and operate the new enrichment facility starting in 2029. Centrus is advancing a multi-billion dollar uranium enrichment facility expansion project in Piketon. This includes large-scale production of LEU for existing nuclear power plants, as well as next-generation nuclear...

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