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%.

[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 Analysis: Jiuwu Hi-Tech's LATP Solid-State Electrolyte Passes 4.62V Extreme Overcharge Test, Ceramic Membrane Giant's Dual-Track Solid-State Battery Layout] Jiuwu Hi-Tech's LATP solid-state electrolyte was applied in NCM811 pouch batteries and passed the extreme overcharge (4.62V) and over-discharge (0V) tests according to GB38031-2020, with no smoke, fire, or explosion throughout the process, a temperature rise of ≤5°C, and a significantly improved safety margin. The company has adopted a dual-track layout of oxides (LLZO/LATP) and sulphides, achieved mt-level mass production and supplied leading battery cell enterprises, while advancing a hundred-mt-level pilot scale-up. Leveraging nearly 30 years of ceramic membrane technology expertise, it is positioning itself in the key materials segment for solid-state batteries.

Solid‑State Battery Weekly Review Hybrid Solid‑Liquid Mass Production Set, All‑Solid‑State R&D Continues

SMM Cobalt Morning Briefing: The cobalt industry chain was generally in the doldrums this week. Refined cobalt prices drifted lower, affected by import data exceeding expectations, the demand off-season, and downstream summer breaks. Sellers and buyers of cobalt intermediate products had a wide psychological price spread, making it difficult to advance transactions, and prices remained temporarily stable. Market inquiries and transactions for cobalt sulphate, cobalt chloride, and Co3O4 were sluggish, with downstream users mainly pushing for lower prices and making just-in-time procurement. Cobalt powder prices continued to hit bottom, while cobalt carbonate was also under pressure.

This week, ternary cathode material prices continued to move lower. On the raw material front, nickel sulfate prices traded at low levels with fluctuations, cobalt sulfate offers continued to decline, manganese sulfate prices held steady, while lithium carbonate and lithium hydroxide saw relatively notable declines due to capital market volatility. In terms of transaction sentiment, some battery cell manufacturers remained bearish amid significant volatility in raw material prices. With sufficient inventory levels, downstream battery cell manufacturers largely adopted a cautious wait-and-see approach and slowed their pace of offtake, leading to subdued trading activity this week. On the payable front, battery cell manufacturers showed limited acceptance of upward payable adjustments amid lackluster demand growth. Meanwhile, with the upcoming reinstatement of the lithium battery consumption tax, battery cell manufacturers may shift part of their cost pressures upstream, further complicating any upward payable adjustments. On the demand side, ternary battery cell manufacturers in the EV market generally adopt M-1 month pricing for settlements. Given the notable decline in raw material prices in July, battery cell manufacturers have shown strong wait-and-see sentiment. Actual offtake volumes this month are expected to be lower than previously anticipated, suggesting that domestic ternary cathode shipments in July may decline. In the consumer market, while the expected reinstatement of the consumption tax exists, its pull-forward effect on orders has been relatively limited, with demand also weighed down by falling raw material prices.