China’s EV and battery makers tussle over paying resumed lithium-ion tax: sources

China's electric vehicle makers and battery manufacturers are arguing over who should pay a resumed tax on lithium-ion batteries. This tax, which was exempt for 11 years, returned to 2 per cent on September 1 and will be fully restored to 4 per cent in a year. The conflict highlights the struggles of carmakers in China's weak home market, where demand is low. This tax dispute could impact the country's electric vehicle industry and its supply chain, affecting trade and the economy.

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China's EV makers and battery manufacturers are negotiating over a consumption tax. The outcome could affect their production costs and competitiveness.

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