Tariff, Cell Cost & Export VAT Rebate Updates and Pricing Impact
USA--Tariff, Cell Cost & Export VAT Rebate Updates and Pricing Impact.pdf
Dear Valued Customer,
2026 is expected to be a challenging year for the batery industry, with continued cell price increases, higher tariffs, and the phase-out of export tax rebate incentives. As always, Pytes is commited to keeping our partners informed so that business planning can be made with sufficient visibility.
Rising Cell Costs
Following the market updates previously shared, cell suppliers have increased prices to Pytes, with price hikes ranging from 15% to 30% depending on the cell model, and further increases are expected. In addition, cell supply remains tight.
Increased Tariffs on Lithium Bateries
Import-related costs have increased due to tariff adjustments. The tariff rate on non-EV lithium ion bateries has risen from 7.5% to 25%, effective January 1, 2026. https://www.whitecase.com/insight-alert/united-states-finalizes-section-301-tariff-increases-imports-china
Although the fentanyl-related tariff was reduced by 10% last year, the net impact on our industry is an effective 7.5% increase in total U.S. duties on non-EV lithium bateries imported from China.
Phase-out of Lithium Batery Export VAT Rebates
We would also like to highlight upcoming changes to China’s export VAT rebate policy for batery products, which will take effect in stages:
● From April 1, 2026 through December 31, 2026, the export VAT rebate rate will be reduced from 9% to 6%.
● Beginning January 1, 2027, the export VAT rebate for batery products will be fully phased out.
These adjustments represent a structural shifi in export cost dynamics rather than a temporary measure.
Commercial Implications
Due to upstream cost increases, higher tariffs, and export policy changes, batery prices will be adjusted upward.
We recommend early order planning to secure current Pytes inventory in US and exisng pricing. Pricing for new full-container orders shipping from China has already increased.
We understand you may have questions regarding these changes. Please reach out to your Pytes sales representative or email pytesusa@pytesgroup.com. We will be happy to walk you through the details.
PYTES (USA) ENERGY, INC
January 16, 2026
