Brokerage analysts: Lithium battery consumption tax has limited impact, with little effect on end-user vehicle prices

Brokerage analysts believe that the lithium battery consumption tax was already anticipated within the industry, and its impact is limited. The price of battery cells is about 0.35–0.40 yuan/Wh, and a 2% consumption tax would add approximately 0.007–0.008 yuan/Wh. A tax rate of 2–4% corresponds to an impact on lithium carbonate of 12,000–25,000 yuan per ton. With lithium carbonate prices rising and order supply limited, the tax burden remains small. For end buyers, a 2–4% tax only increases the cost of each vehicle by several hundred yuan. According to Cui Dongshu, Secretary-General of the China Passenger Car Association, this policy reflects that oil-electricity price parity is being established. As vehicle purchase tax reductions and vehicle and vessel tax exemptions are canceled, industry tax incentives are gradually being withdrawn.