SMM, Oct. 15-China's decision to raise export tax rebates next month is likely to boost exports of cobalt and lithium metals.
For goods that currently receive 15% or 13% of the export tax rebate, the tax rebate will be increased to 16%, while the current 9% tax rebate will be raised to 10%.
In the latest policy, the government raised 397 export tax rebates in September, including steel, germanium, tungsten and other metals and electronics. The move is also a move by the government to deal with the trade war between China and the United States.
China currently has an export tax rebate of 13 per cent for cobalt tetroxide, lithium manganese oxide, lithium hexafluorophosphate, nickel cobalt aluminum (NCA), lithium oxide and its hydroxide, nickel cobalt manganese (NCM) lithium oxide and its hydroxide. As of November 1, the tax rebate for these products will be raised to 16 per cent.
The changes are expected to reduce the export costs of cobalt, lithium salt and chemicals from Chinese suppliers, which are widely used to make battery cathodes and increase overseas shipments. But it also means that battery makers outside China will buy salt and chemicals from China and sell cheaper finished products to Chinese buyers, which could put pressure on domestic battery makers.
For years, domestic participants in China's battery industry chain have called for higher export tax rebates. Battery makers have urged the government to cancel tax rebates to protect their shares, while cobalt and lithium salt and chemical suppliers have pushed for higher tax rebates to reduce export costs.
In the first three months of this year, China exported 2171 tons of cobalt tetroxide, up 31 per cent from a year earlier, according to the latest government figures. From January to March this year, lithium cobalt acid exports totaled 10487 tons, an increase of 27 percentage points over the same period last year, and 3203 tons of NCM lithium oxide, an increase of 130 percentage points over the same period last year.
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