Announcement No. 20 of 2026 has officially come into effect, clarifying that China will resume levying consumption tax on lithium-ion batteries from September 1, 2026. The policy adopts a tiered tax rate mechanism: the period from September 2026 to August 2027 will serve as a policy transition period, with the consumption tax rate applied at 2%; from September 1, 2027, the rate will be officially raised to 4%.

The first half of 2026 is already in the past. At the start of H2, industry chain enterprises have begun to release their H1 2026 performance forecasts collectively. Notably, against the backdrop of a significantly higher YoY lithium price center, stable demand in the NEV industry, and a continuously booming energy storage sector, most enterprises in the lithium industry chain expect varying degrees of performance improvement. SMM has compiled the performance forecast situations of some enterprises in the industry chain, as follows:

[SMM Cobalt & Lithium Morning Brief: Battery Material Prices Show Divergent Trends, End-user Procurement Remains Cautious] Lithium ore prices are in the doldrums but low-priced resources are limited, lithium carbonate spot and futures prices rebounded, and lithium hydroxide maintained a steady slight increase. Refined cobalt and cobalt salt are generally in the doldrums, impacted by off-season demand, sufficient inventory, and cautious procurement. Nickel sulphate cost support strengthened, ternary cathode precursor prices held steady, and ternary cathode material rebounded slightly, but actual cargo pick-up remained cautious. LFP prices declined along with raw material, while shipments continued to grow, supported by energy storage and commercial vehicle demand. Anode, separator, and electrolyte prices were generally stable, with expectations for some raw material cost transmission downstream. Sodium-ion battery material supply remained relatively tight, while the recycling market consolidated on a weak note due to fluctuations in lithium and cobalt raw material prices.

[SMM Lithium Battery Electrolyte Market Weekly Review: Electrolyte Prices Stabilized This Week (July 20-23, 2026)] From July 20 to 23, 2026, electrolyte prices stabilized. The future trajectory of electrolyte market prices still requires ongoing monitoring of raw material price fluctuations and their transmission.

[SMM Analysis: VC Supply-Demand Tight Balance to Persist in Short Term; HSC 60,000 mt Project Adjustment May Reshape Industry's Long-Term Competitive Landscape] On July 11, 2026, HSC New Energy Materials issued an announcement, making a major adjustment to the construction plan for the 60,000 mt vinylene carbonate (VC) project in Yunmeng, Hubei: The original phased construction plan for 30,000 mt in Phase I and 30,000 mt in Phase II was canceled and changed to a one-time overall construction of 60,000 mt VC capacity. The total project investment remains unchanged at 1.6 billion yuan, and the construction site, investment entity, and overall time to reach full production remain unchanged.

[SMM Analysis: Demand Boost Drives Anode Production Higher in June, Enterprises Prioritize Destocking Amid Cost Pressure] SMM, July 15 – According to SMM data, China's anode material production showed growth in June 2026, up 3.9% MoM and 66.4% YoY.