# China Battery Exports Face Triple Policy Shift: Tax Rebate Cut, EU Price Undertakings, Battery Passport

China will cut the VAT export rebate on new energy vehicles from 13% to 9% starting April 1, 2027, as EU electric vehicle price undertakings and GBA battery passport requirements advance, reshaping the overseas battery supply landscape after 571,000 new energy vehicles were exported in September\.

By China EV Signal
Published: 2026-10-18T01:53:42.976Z
Updated: 2026-10-18T01:53:42.979Z
Canonical article: https://chinaevsignal.com/news/china-battery-exports-tax-rebate-eu-price-undertakings-gba-battery-passport

## Key takeaways

- China's Ministry of Finance and State Taxation Administration announced on October 12 a cut in the VAT export rebate for new energy vehicles from 13% to 9%, effective April 1, 2027, covering 67 product categories\.
- The China Passenger Car Association reported 558,000 new energy passenger vehicle exports in September, up 163\.5% year on year, while CAAM data showed 571,000 new energy vehicle exports, up about 1\.6 times\.
- The Global Battery Alliance published its battery benchmark system on September 25 and, with the China Chamber of Commerce of Metals, Minerals & Chemicals Importers & Exporters, held a joint workshop on battery passport sustainability certification and China supply chain due diligence guidelines on October 13\.

## Tax rebate cut

On October 12, China's Ministry of Finance and State Taxation Administration issued Announcement No\. 29 of 2026, cutting the VAT export rebate rate for new energy vehicles from 13% to 9% effective April 1, 2027\. The change covers 67 product categories, including both battery-electric and plug-in hybrid models\.

Using an industry-average battery capacity of 50 kWh per vehicle, the 571,000 new energy vehicle exports in September correspond to roughly 28 GWh of monthly overseas battery demand\. For a battery-electric model with a $20,000 free-on-board price, the 4-percentage-point rebate cut would compress per-vehicle profit by about $800, based on a rough calculation\.

## September export figures

The China Passenger Car Association reported 558,000 new energy passenger vehicle exports in September, up 163\.5% year on year\. Under China Association of Automobile Manufacturers figures, new energy vehicle exports totaled 571,000 units, up about 1\.6 times\.

BYD accounted for 31\.5% of September new energy passenger vehicle export share, with battery supply handled entirely by its subsidiary FinDreams Battery\. BYD recorded 175,877 exports in September, followed by Chery with 85,990 and Geely with 72,893\.

## EU price undertakings

On October 8-9, Commerce Minister Wang Wentao and European Commission Trade Commissioner Maros Sefcovic co-chaired the second meeting of the China-EU trade and investment consultation mechanism in Beijing\. The two sides reached an understanding on hybrid vehicle trade in a manner consistent with WTO rules and confirmed they would continue to advance price undertakings and the review procedure in the EU's electric vehicle anti-subsidy case\.

In January 2026, China and the EU reached a soft landing in the electric vehicle anti-subsidy case, with the European side issuing general guidance on price undertakings centered on a minimum import price plus an annual quota\. On October 14, BYD, Geely and Chery issued statements on the same day\.

## Battery passport rules

On September 25, the Global Battery Alliance released its battery benchmark system and established a new partnership with the International Trade Centre\. On October 13, GBA and the China Chamber of Commerce of Metals, Minerals & Chemicals Importers & Exporters held a joint workshop on battery passport sustainability certification and China supply chain due diligence guidelines\.

In September 2026, GBA published results from its battery passport operational trials, involving 18 consortia formed by 40 organizations from 13 countries\. The trials covered LFP, NCM and NCA chemistries and the full supply chain for lithium, cobalt, nickel and natural graphite\. Under the EU Battery Regulation \(EU 2023/1542\) timetable, electric vehicle batteries must carry a digital battery passport from 2027, with a unique code recording raw material traceability, carbon footprint, production data, due diligence and recycling information\.

## Overseas battery plant plans

CATL's Debrecen plant in Hungary has planned capacity of 100 GWh and is scheduled for trial production in September 2026\. Its Zaragoza plant in Spain has planned capacity of 50 GWh, is a 50-50 joint venture with Stellantis, involves total investment of 4\.1 billion euros and is scheduled to start production by the end of 2026\. CATL's domestic capacity utilization rate stands at 94\.86%, against industry-wide annual capacity of more than 1,200 GWh\.

Gotion High-tech, in a joint venture with Volkswagen's PowerCo, is building plants in Valencia, Spain; Surany, Slovakia; and Kenitra, Morocco, with total investment of 3\.222 billion euros, of which Gotion contributes 1\.598 billion euros\.

EVE Energy's Debrecen plant in Hungary is planned for 28 GWh of large cylindrical cells adjacent to a BMW factory, with production expected around 2027\. CALB's Sines project in Portugal involves total investment of 2\.067 billion euros, including a 350 million euro government subsidy, and includes 15 GWh of energy storage capacity\. SVOLT's Thailand plant has annual capacity of 60,000 short-blade battery packs, while its European plant was suspended in 2024\.

## Original publisher

高工锂电. Published: 2026-10-17T12:06:40.000Z