China has introduced a tax exemption for sodium-ion batteries that will remain in effect until December 31, 2028. This policy provides a fiscal advantage for the technology as the country simultaneously imposes a 2 percent consumption tax on specific lithium-ion batteries starting September 1, 2026. This lithium-ion tax rate is scheduled to rise to 4 percent on September 1, 2027.
To qualify for the exemption, sodium-ion batteries must meet national standards. Solid-state batteries and fuel cells also remain exempt under the same timeline.
Following this policy shift, HiNa Battery signed an agreement on October 14, 2026, to establish a production base in Wuhan. The facility is planned to have an annual capacity of 10 GWh. Construction is set to start in early 2027, with the first phase targeting 3 GWh of capacity. Initial production is expected before the end of 2027.
While sodium-ion technology offers performance benefits in extreme temperatures, it currently faces challenges regarding energy density and production costs compared to established lithium-ion alternatives.
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