According to the announcement released by the Ministry of Finance and the State Administration of Taxation, the export tax rebate rate for battery products will be reduced from 9% to 6% from April 1, 2026 to December 31, and will be fully cancelled from January 1, 2027. This is a further adjustment following the reduction of the tax rebate rate from 13% to 9% in December 2024, marking the accelerated end of the era of tax subsidies for China's battery exports.

Faced with policy changes, leading battery companies generally adopt a response strategy of "price increase transmission+overseas layout". Yang Hongxin, Chairman of Honeycomb Energy, stated that the purpose of canceling tax refunds is to bring battery prices back to a reasonable level, and the company is considering promoting overseas localization layout. Zhuhai Guanyu responded on the investor interaction platform that it will reduce the impact by adjusting export prices, accelerating overseas production capacity construction, and promoting technological upgrades. The overseas market leader of a leading lithium battery company revealed that a preliminary consensus has been reached in the price increase negotiations with Indian customers. "After confirming that major domestic suppliers have raised prices, customers have turned to rational acceptance. Tang Doudou, Vice President of Liansheng Photovoltaic, believes that the cancellation of tax refunds is a positive development for the industry, and Chinese companies can moderately increase product prices to offset costs.

Implementation of new recycling regulations: building a closed-loop system for the entire chainThe Interim Measures for the Management of Recycling and Comprehensive Utilization of Waste Power Batteries for New Energy Vehicles, which were implemented at the same time, have been referred to as the "strictest" new recycling regulations in history by the industry. The policy directly targets the pain points of the industry - according to incomplete data statistics, about 75% of waste power batteries flow into non-standard channels, and formal recycling enterprises face the dilemma of "not having enough to eat" for a long time.

The new regulations introduce two key institutional innovations: firstly, the "vehicle electric integrated scrapping" system, which clarifies that when scrapping new energy vehicles, power batteries must be present, otherwise cancellation registration will not be processed; The second is the "digital ID card" management system for power batteries, which enables traceability of information throughout the entire lifecycle.Hu Linlin, Minister of the Strategic Development Department of Jinsheng New Energy, pointed out that the new regulations will effectively fill the institutional gap and compress the living space of non compliant small workshops. Jiao Yawei, Executive Vice President of Tianjin Batrui Technology, stated that the principle of "no separation between vehicle and electric power" provides the ultimate guarantee for the regulation oflithium batteries, and the key lies in the normalization of implementation and supervision.

NIO has become a special beneficiary under the new regulations by relying on the vehicle electric separation mode. Due to the fact that the battery swapping station model is not suitable for the "vehicle electric integrated scrapping" requirement, the battery is managed in a closed-loop manner within NIO from start to finish. Its 3708 charging and swapping stations across the country also play the role of a pre storage warehouse for battery monitoring and recycling.

Enterprises accelerate the layout of the recycling track

After the policy was clarified, multiple companies intensively disclosed new developments in the recycling field:

Sunwoda

Xinwangda's 1.2 billion yuan waste lithium battery recycling project in Tengzhou, Shandong has recently been put into operation. The first phase has an annual processing capacity of about 50000 tons, and the battery black powder recycling rate is stable at 98%. AI visual recognition and automated disassembly technology have increased efficiency by five times compared to manual labor.

Green Beauty

Green Beauty will recycle and dismantle over 52000 tons of power batteries by 2025, a year-on-year increase of over 45%.

CATL

Ningde Times has built a full chain closed-loop through its subsidiary Bangpu Recycling. Recently, it signed an agreement with Yichang, Hubei to invest in the layout of a new iron phosphate material project, with a planned total recycling and processing capacity of over 1 million tons by 2030.

Zhongwei New Materials

Zhongwei New Materials disclosed in the investor relations activity record that the company is building a nationwide power battery recycling system and promoting closed-loop cooperation with positive electrode materials, batteries, and vehicle manufacturers.

Tianqi Corporation

Tianqi Corporation stated that the company is actively developing a power battery recycling system that covers both domestic and international markets.

Baili Technology

Baili Technology announced plans to establish a holding subsidiary in Changzhou to develop its lithium battery dismantling and recycling equipment system business.

Dezhong Automobile

Dezhong Automobile has identified its strategic focus for the next 3 to 5 years as new energy, scrap dismantling, and circular economy projects for power batteries.

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Industry outlook:

Parallel short-term pressure and long-term regulation

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Li Xianzhong, Director of the Comprehensive Department of the Ministry of Finance, stated that the adjustment of tax refunds is conducive to guiding the rational adjustment of industrial structure and the comprehensive rectification of "internal competition". The new recycling rules promote the standardization and scale development of the industry through legal means.

In 2025, China's lithium battery exports will grow by 26.2%, with the export scale of the "new three types" approaching 1.3 trillion yuan. With the gradual withdrawal of tax refund subsidies, the industry will shift from policy driven to market driven. At the same time, the EU's new battery regulations have put forward mandatory requirements for carbon footprint, battery passports, and recycled materials, and the improved recycling system is shifting from a "cost burden" to a "sea pass".

From the refund of export tax rebates to the implementation of new recycling regulations, April 1, 2026 will become a watershed for the development of the battery industry. When "tax refund dependence" becomes history and a closed-loop recycling system is formed, China's battery industry is participating in global competition in a healthier way.