Battery makers see fully charged future after cuts to raw materials tariffs

The outlook for lithium battery firms in China is turning positive, powered by tariff cuts on raw materials, say experts.

The analysis comes after China's Ministry of Finance announced in December it would slash import tariffs on lithium carbonate and cobalt sulfate from 5 percent to 2 percent, and cut tariffs on many other raw materials by 3 to 5 percent. The ministry also said it was set to scrap all tariffs on spodumene ore and cobalt hydrometallurgical semi-products, two key materials in the lithium extraction process.

In conjunction, the ministry also increased import tariffs on lithium batteries from 8 percent to 12 percent, a sign to encourage domestic production and attract inward investment from overseas, experts said.