A new wave of cell price hikes is sweeping the battery energy storage industry. Major manufacturers have initiated price increases, with smaller producers quickly following suit.
CATL led the charge by raising the price of its 314Ah storage cells from RMB 0.414/Wh (US$0.062/Wh) to RMB 0.423/Wh. Meanwhile, EVE Energy announced that effective 1 September 2026, a 2% consumption tax surcharge will be added to the base price of all domestic battery products. Export-bound products will be eligible for tax rebates, ensuring price parity between domestic and export markets.
Lishen Battery issued a customer notice stating that, starting in September, all products will have their base tax-exclusive supply price increased to pass on a 2% consumption tax, plus a 7% urban maintenance and construction tax and a 5% education surcharge.
Smaller manufacturers, such as Anhui Eagoal New Energy Group and Yili New Energy, have similarly issued price adjustment notices to push through higher prices. On 7 September, Desay Battery told investors via an interactive platform that its Hunan-based storage cell production lines are currently operating at full capacity.
Try Premium for just $1
- Full premium access for the first month at only $1
- Converts to an annual rate after 30 days unless cancelled
- Cancel anytime during the trial period
Premium Benefits
- Expert industry analysis and interviews
- Digital access to PV Tech Power journal
- Exclusive event discounts
Or get the full Premium subscription right away
Or continue reading this article for free
According to Gaogong Storage (GGII), the average price of 314Ah storage cells climbed from RMB 0.28/Wh in early 2025 to roughly RMB 0.38/Wh by mid-2026. While earlier price hikes were primarily driven by supply shortages amid rising demand, tax policy changes and rising upstream raw material costs have now become key catalysts for the rally.
“The primary trigger for this latest round of price hikes is the new cell consumption tax. Manufacturers are now under pressure to pass these added costs directly onto buyers,” said Li Yisha, a storage industry analyst at Shanghai Nonferrous Metals.
In July 2026, China’s Ministry of Finance, General Administration of Customs, and State Taxation Administration jointly issued the Announcement on Adjusting the Consumption Tax Policy for Certain Batteries. Effective 1 September 2026, a 2% consumption tax will apply to mercury-free primary batteries, nickel-metal hydride batteries, lithium primary batteries, lithium-ion batteries, and all-vanadium redox flow batteries. This rate will increase to 4% starting 1 September 2027.
As these battery categories have been exempted from consumption tax since 2015, the policy shift translates into tangible cost increases for manufacturers. Public price adjustment notices indicate that most battery producers have timed their revisions to coincide with the new tax’s 1 September effective date.
According to Li Yisha’s calculations, at an average storage cell price of RMB 0.36/Wh, the 2% consumption tax adds roughly RMB 0.007 per Wh. This translates to approximately RMB 7 million in additional costs for every GWh of cell production.
“While the consumption tax was the direct catalyst for this round of price hikes, the coordinated moves among major producers are fundamentally rooted in an improving supply-demand balance, which has restored pricing power to battery manufacturers,” noted Envision AESC.
The storage battery sector is now operating at an average capacity utilisation rate above 90%. Some production lines are even exceeding their rated capacity, and mainstream 314Ah storage cells are in tight supply.
Despite broad efforts to push for higher prices, actual implementation varies widely. Ultimately, how the new tax burden is distributed will depend on negotiations between upstream and downstream players.
EVE Energy recently stated that it is conducting a thorough analysis and working with partners across its supply chain to share and pass on the incremental tax costs.
According to Li, whether these price increases can be fully realised will ultimately test a manufacturer’s overall competitiveness—specifically its supply reliability, product technology, and customer portfolio.
Tier-1 manufacturers, with their large market shares and high customer loyalty, hold stronger leverage and greater negotiating flexibility when discussing cost-sharing with downstream clients.
By contrast, most small- and mid-sized battery firms are reacting to cost headwinds from a relatively weak position. They face a tough trade-off: raise prices and risk losing orders, or keep prices flat and absorb the losses. The coming months will be a critical test.
