Evan Hartley

On 17 July, China’s finance ministry announced legislation ending eleven years of tax exemptions for the lithium ion battery industry. This is an effort to curtail overcapacity in the industry that is also likely to offer its growing sodium ion battery industry a comparative boost, as it will retain these exemptions. From 1 September 2026, a 2% consumption tax will be levied on lithium ion batteries, as well as all-vanadium redox flow and nickel-metal hydride batteries. From 1 September 2027, the rate will rise again to 4%.

With four active battery cell manufacturing sites and two more set to begin production in 2026, Hungary is one of Europe’s success stories when it comes to battery localisation. Anticipated to host 127GWh of active capacity by the end of 2026, from four Tier 1 producers, the country accounts for 28% of the region's forecasted total capacity this year and 34% of production. Only Poland is expected to produce more cells, due to the 126GWh LGES NCM and LFP factory in Wroclaw. The 2026 Hungarian parliamentary election saw the country’s established battery industry become a contested issue between the incumbent Orbán-led Fidesz Party and the newly elected Tisza Party led by Péter Magyar. Magyar won the April 12, 2026, election in a landslide, with Tisza winning a two-thirds supermajority, giving Magyar a strong mandate to enact reforms.

Chinese lithium and sodium ion cell manufacturer, Highstar Power, announced the advent of commercial cell production at its 2.5GWh manufacturing base in Johor, Malaysia, in early April, cementing the country’s status as Southeast Asia’s battery hub. The factory is the fifth to enter production there.

Between 2020 and 2025 gigafactory capacity grew six-fold, and it is set to grow another 118% by 2030 as assessed by Benchmark’s Battery & Gigafactory Service. To celebrate International Battery Day, Benchmark explores how the top five battery producers have shifted since 2020, and which companies are set to hold the top positions in 2030.