Zinc-Manganese Battery Export Tax Rebate Rate Reduction [SMM Analysis]

Commonly known as dry cells, zinc-manganese batteries are primary cells that use manganese dioxide as the cathode, zinc as the anode, and an aqueous solution of ammonium chloride as the main electrolyte. In academic circles, they are also referred to as Leclanché cells. Zinc-manganese batteries are ubiquitous in our daily lives, primarily used in small household electronic devices such as remote controls, flashlights, toys, and home medical instruments.

Classification of Zinc-Manganese Batteries from the Perspective of Electrolytes: zinc-manganese batteries can be divided into alkaline zinc-manganese batteries and carbon zinc-manganese batteries depending on the type of electrolyte. Carbon zinc-manganese batteries typically use acidic electrolytes, often ammonium chloride or a new chloride solution. They are generally used in low-energy devices, such as flashlights and toys, due to their lower cost and convenience. Alkaline zinc-manganese batteries, on the other hand, use an alkaline electrolyte, usually potassium hydroxide. They offer better density and continuous discharge capabilities compared to carbon zinc-manganese batteries and are commonly used in devices requiring higher battery performance, such as cameras or remote controls. Due to their strong alkaline electrolytes and higher energy density, alkaline zinc-manganese batteries have a longer lifespan and higher energy output. From the Perspective of Separator Materials: Batteries can be categorized into paste batteries, cardboard batteries, and film batteries. Paste batteries use a gel formed from flour, starch, and electrolyte as the separator between the electrodes; cardboard batteries use a pulp paper layer as the separator; film batteries use polymer film materials as the separator. From the Perspective of Assembly: Batteries can be divided into single cells, combined batteries, and compound batteries. A compound battery is formed by combining two different types of single cells, while a combined battery consists of the same type of cells assembled together.

In November 2024, the State Taxation Administration adjusted the export tax rebate policy for certain goods, stipulating that from December 1, 2024, the export tax rebate rate for certain battery products, including alkaline zinc-manganese and other primary cells, will be reduced from 13% to 9%.

It is understood that from January to October this year, China's cumulative export volume of zinc-manganese batteries reached 11.47 billion units, with a cumulative growth of 0.78 percentage points YoY, a slowdown compared to the same period last year. The current reduction in the export tax rebate rate will continuously increase the costs for Chinese enterprises, and it is expected to significantly impact the export of zinc-manganese batteries from China in the future.
Zinc-Manganese Battery Industry Chain Distribution:

It is known that the production and manufacturing of zinc-manganese batteries are mainly concentrated in Zhejiang, Fujian, Guangdong, and Jiangsu. Currently, domestic policies continuously strengthen technological innovation in zinc-manganese batteries, deepen cooperation, and promote green production. We will also continue to pay close attention to developments in the zinc-manganese battery sector.