China is granting qualifying sodium-ion batteries a temporary tax advantage as manufacturers pursue commercial electric vehicles. Specified lithium-ion batteries became subject to a 2% consumption tax on 1 September 2026, rising to 4% a year later. Sodium-ion batteries meeting national standards remain exempt through 31 December 2028, alongside qualifying solid-state batteries and fuel cells.
Against this backdrop, Hina Battery signed an agreement with Wuhan’s Jiangxia District on 14 October for a production base with a planned annual capacity of 10 GWh. Its first phase is expected to provide 3 GWh. Construction is scheduled for early 2027, with initial production targeted before year-end. A separate partnership with Chengli Special Automobile Group covers sanitation vehicles, including refuse collection, dust-suppression and food-waste trucks.
Sodium’s wider geographical availability could diversify raw-material supplies, although downstream production remains concentrated in China, particularly battery cells, cathode materials and hard carbon. Cold-weather performance is another potential advantage. FAW Jiefang reported that a sodium-ion battery fitted to an electric heavy truck kept over 90% of its usable capacity in tests at minus 40 degrees Fahrenheit.
The principal technical drawback is lower energy density: storing an equivalent amount of energy can require larger or heavier packs than lithium-ion alternatives. Meanwhile, falling lithium prices have narrowed the cost gap between the technologies. Battery-grade lithium carbonate averaged approximately US$13,500 per metric tonne on 28 October. The exemption may improve the economics of sodium-ion production, but it does not guarantee lower manufacturing costs.
