翻译
China’s Ministry of Finance and State Taxation Administration announced in January that the VAT export rebate for battery products will be cut from 9% to 6% between April 1 and December 31, 2026, before being eliminated entirely from January 1, 2027. The change directly affects the cost base of every Chinese battery cell and system exported from that point on, and Malaysian developers are already adjusting their procurement timelines because of it.
What’s changing, and when
The rebate cut applies specifically to finished battery products, not to lithium carbonate or raw materials directly, though analysts expect the accelerated production and shipment activity ahead of the deadline to tighten lithium supply in the near term regardless. Export rebates for photovoltaic products are being phased out on a faster timeline, disappearing entirely from April 2026.
For Chinese exporters, the removal of the rebate is a straightforward margin problem: unless the higher tax cost can be passed on to overseas buyers, exporters absorb it directly. Industry reporting since the announcement has already noted battery makers renegotiating export contracts to test how much of that cost buyers will accept.
The Malaysia angle
A July 2026 Hong Leong Investment Bank (HLIB) research note connected this policy directly to Malaysia’s domestic BESS procurement pattern, noting that developers are being prompted to bring forward battery procurement plans into the second half of 2026 — specifically ahead of the January 2027 full removal of the rebate.
In practical terms, this creates a narrowing window where Malaysian developers sourcing Chinese-made batteries for LSS6, MyBeST, and CRESS-linked projects can still benefit from the current 6% rebate rate before it disappears completely. After January 2027, the same equipment carries a real cost increase baked in, whether or not Malaysian buyers see it reflected immediately in quoted prices.
Why the timing matters for planning
For developers and EPCC contractors currently sequencing procurement across multiple projects, this is a genuine scheduling variable, not just a pricing footnote. Orders placed and shipped before the rebate fully disappears carry a cost advantage that orders placed afterward will not. Combined with LSS6’s own procurement timeline running through 2029, the rebate deadline adds a second, independent clock that Malaysian buyers now need to track alongside their own project schedules.
