China is giving some sodium-ion batteries a tax advantage. These batteries use sodium instead of lithium. A tax on some lithium-ion batteries started at 2% in September 2026. It will rise to 4% in September 2027. Sodium-ion batteries that meet national rules do not face this tax until the end of 2028.
Hina Battery plans a factory in Wuhan. The company plans to start building it in early 2027. It aims to start making batteries before that year ends. Hina is also working with Chengli Special Automobile Group on electric trucks for collecting rubbish and other cleaning work.
Sodium is available in more places than lithium. Sodium-ion batteries may also work better in very cold weather. Truck maker FAW Jiefang tested one in an electric heavy truck at minus 40 degrees Fahrenheit. The battery could still hold more than 90% of its usual usable energy.
However, these batteries hold less energy for their weight than lithium-ion batteries. Trucks may therefore need larger or heavier batteries. Also, lithium prices have fallen. This has reduced the difference in costs between the two types. The tax advantage does not mean sodium-ion batteries always cost less to make.
