China has introduced a temporary tax advantage for qualifying sodium-ion batteries as HiNa expands into commercial vehicles. From September 1, 2026, specified lithium-ion batteries face a 2% consumption tax, rising to 4% a year later. Sodium-ion batteries, solid-state batteries and fuel cells that meet applicable national standards are exempt through December 31, 2028.
The policy arrives amid lower lithium prices: battery-grade lithium carbonate averaged about 97,000 yuan (US$13,500) per tonne on October 28, while square LFP cells for EVs averaged 0.41 yuan (US$0.057) per Wh on October 22. The exemption provides a tax benefit, but does not prove sodium-ion cells are cheaper to make than LFP batteries. Hard-carbon anodes and lower energy density remain cost and packaging challenges.
HiNa agreed with Wuhan’s Jiangxia District to build a battery plant with planned annual capacity of 10 GWh, including a 3 GWh first phase. Construction is due to start in early 2027, with initial production expected before year-end. The company and Chengli Special Automobile Group also plan sodium-ion sanitation trucks, with an initial chassis approval application targeted for early 2027 and demonstrations expected in Wuhan.
The technology has been tested in heavier vehicles. FAW Jiefang reported that a 339 kWh sodium-ion pack in a J6P tractor retained over 90% of usable capacity at minus 40°C after more than 15,000 km of testing. HiNa lists energy density of at least 145 Wh/kg. A 676 kWh system was also delivered for a mining truck in Hebei. China’s new sodium-ion safety standard, effective March 1, 2027, covers stationary storage rather than vehicle traction batteries.