[7.18 Lithium Battery News] Two Departments Announce Adjustment of Luxury Car Consumption Tax Threshold to 900,000 Yuan

[Dongshu Cui: Adjustment of Luxury Vehicle Consumption Tax Scope Is Reasonable]Secretary General of the China Passenger Car Association Dongshu Cui stated in an article today that the adjustment of the consumption tax scope for ultra-luxury vehicles corresponds to significant changes in market promotion prices. This adjustment helps guide rational consumption and achieve green, sustainable development, making it a reasonable and normal measure. Ultra-luxury vehicles account for only about 0.1% of the total vehicle market, having no impact on general consumers. Cui noted that the average price of luxury vehicles, previously priced at 1.3 million yuan, has now dropped to 900,000 yuan, with a corresponding tax-inclusive price of 1.45 million yuan, aligning with the baseline set during the 2016 tax policy formulation. "Adjusting the threshold for ultra-luxury vehicles to 900,000 yuan is highly reasonable, reflecting the correlation between market changes and tax adjustments while ensuring relative stability in the tax base. In reality, this does not expand the tax scope." (Cailian Press)

[Chongqing: NEV Power Battery Recycling Network Coverage Rate to Reach 90% by 2027]The Chongqing Municipal Commission of Economy and Information Technology issued the "Chongqing Work Plan for Cultivating the NEV Power Battery Recycling Industry (2025–2027)." The plan proposes that by 2027, the city will establish a sound industrial system for power battery recycling, continuously optimize the industrial ecosystem, and preliminarily build a leading power battery recycling industrial base in western China. The coverage rate of the NEV power battery recycling network across districts and counties will reach 90%. A number of recycling enterprises compliant with the "Industry Standards for Comprehensive Utilization of Retired NEV Power Batteries" will be cultivated, and more than two recycling industrial bases with clustered development will be established. The recovery rates of metals such as lithium, cobalt, nickel, and manganese will continue to improve, while breakthroughs will be made in technologies for refining component materials and extracting valuable metals from retired power batteries. Key common technologies, including intelligent and refined battery disassembly and wet-process full-component resource recovery, will be widely applied. (Cailian Press)

[Sichuan: Continued Expansion in Production of PV, Lithium-Ion Battery and NEV, H1 NEV Output Exceeds Full-Year 2024]The Sichuan Provincial Government Information Office held a press conference today, where Zhigang Yang, Deputy Director and Spokesperson of the Sichuan Provincial Bureau of Statistics, introduced the economic performance of Sichuan in H1 2025. Yang stated that the province is accelerating the cultivation of new quality productive forces, driving the economy toward higher-quality, greener, and smarter development, with new momentum continuously growing. In H1, the added value of Sichuan's power battery, NEV, and vanadium-titanium industries increased by 36.5%, 11.0%, and 13.8%, respectively. The production of PV, lithium-ion battery and NEV continued to expand, with NEV, solar cell, and automotive lithium-ion power battery output growing by 2.4 times, 1.9 times, and 53.2%, respectively. In H1, Sichuan's NEV production reached 144,000 units, surpassing the full-year 2024 level and accounting for 27.6% of the province's total vehicle output, up 16.2 percentage points year-on-year. (Cailian Press)

[Two Departments Adjust Luxury Vehicle Consumption Tax Threshold to 900,000 Yuan]The Ministry of Finance and the State Taxation Administration announced that, to further guide rational consumption and with the approval of the State Council, the following adjustments are made to the luxury vehicle consumption tax policy: 1. The scope of luxury vehicles subject to the tax under Article 1 of the "Notice on Imposing Consumption Tax on Luxury Vehicles" (Caishui [2016] No. 129) is revised to "passenger vehicles and light commercial vehicles with retail prices of 900,000 yuan (excluding VAT) or above, regardless of power type (including pure electric, fuel cell, etc.)." The scope of the luxury vehicle import consumption tax under the "Notice on Adjusting Import Consumption Tax for Vehicles" (Caiguanshui [2016] No. 63) is adjusted accordingly. Click for details: https://news.smm.cn/news/103433496

[GSP Automotive Group: Solid-State Battery Production Line Expected to Partially Commence by Year-End]GSP Automotive Group stated on an interactive platform that its solid-state battery production line for ESS is expected to partially commence production by the end of this year and reach full production by mid-2026. The solid-state battery for EVs is currently in the pilot line layout phase, with the joint venture preparing technical reserves and monitoring industry trends. (Cailian Press)

[GM Signs MoU with Battery Recycler Redwood Materials to Accelerate ESS Deployment]General Motors signed a non-binding memorandum of understanding with battery recycler Redwood Materials to accelerate ESS deployment, which will utilize GM's new batteries manufactured in the US and used battery packs from its EVs. The two parties are expected to announce further details later this year. (STAR Market Daily)