Building a U.S. Battery Industry for Electric Drive Vehicles: Automotive Industry Perspective July 26, 2010 Nancy Gioia Director Global Electrification Ford Motor Company
Sustainability Strategy Technology Migration 2007 2011 2020 2030 Near Term Begin migration to advanced technology Mid Term Full implementation of known technology Long Term Continue leverage of Hybrid technologies and deployment of alternative energy sources Near Term Significant number of vehicles with EcoBoost engines Electric power steering begin global migration Dual clutch and 6 speed transmissions replace 4 & 5 speeds Flex Fuel Vehicles Add Hybrid applications Increased unibody applications Introduction of additional small vehicles Battery management systems begin global migration Aero improvements Stop/Start systems (micro hybrids) introduced CNG/LPG Prep Engines available where select markets demand Mid Term EcoBoost engines available in nearly all vehicles Electric power steering -High volume Six speed transmissions -High volume Weight reduction of 250 750 lbs Engine displacement reduction aligned with weight save Additional Aero improvements Increased use of Hybrid Technologies Introduction of PHEV and BEV Vehicle capability to fully leverage available renewable fuels* Diesel use as market demands Increased application of Stop/Start Long Term Percentage of Internal combustion engines dependent on renewable fuels Volume expansion of Hybrid technologies Continued leverage of PHEV, BEV Introduction of fuel cell vehicles Clean electric / hydrogen fuels Continued weight reduction actions via advanced materials Page 1
Hybrids, Plug-In Hybrids, and BEVs Page 2
North America Announced Electrification Projects 2004 CY 2010 CY 2012 CY 2018+ CY BEV Battery Electric Vehicles Transit Connect (Global C-Platform) Focus (N.A.) (Global C-Platform) PHEV Plug-in Hybrid Electric Vehicles Global C-Platform HEV Hybrid Electric Vehicles Escape Fusion/Milan Next Generation HEV Next Generation HEV Page 3
Ford of Europe Announced Electrification Projects 2010 CY 2011 CY 2012 CY 2013+ CY BEV Battery Electric Vehicles Transit Connect Focus Electric (Global C-Platform) PHEV Plug-in Hybrid Electric Vehicles New PHEV HEV Hybrid Electric Vehicles Next-Generation HEV Next-Generation HEV Page 4
Ford Global Electrification Product Plan 2010 CY 2015 CY 2020 BEV Ford Global Volume BEV PHEV PHEV HEV HEV HEV % of total Ford volume 1% 2-5% 10-25% Balanced Portfolio Global Flexibility Volume will be predominantly HEV Plug-ins gaining acceptance Balanced growth also provides flexibility to react to volatile external factors Page 5
2015MY Global Electrification Volume Projections by Manufacturer Units (Mils.) 6.0 5.0 4.0 3.0 2.0 1.0 0.0 2020 MY Electrification Volume Projections 0.5 0.7 3.1 1.4 1.6 0.9 0.8 2.3 2.3 U.S. Europe China Japan 0.3 0.2 0.8 BEV PHEV HEV Note: Volume projections are based on forecast data from the following 3rd party studies: -Roland Berger -Powertrain 2020: China's ambition to become market leader in E-Vehicles (April, 2009) -Boston Consulting Group -The Comeback of the Electric Car? How Real, How Soon, and What Must Happen Next (December, 2008) -J.P. Morgan -Global Environmental Series Volume 3 -HEVs Potential Reconsidered in Economic Crisis (May, 2009) -A.T. Kearney -Retooling the Vehicle for 2020: How Advanced Technologies Will Radically Restructure the Automobile & Automobile Industry (March, 2010) -Credit Suisse -Electric Vehicles -Global Equity Research (October, 2009) Page 6
2020MY Global Electrification Volume Projections by Region 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% Renault/Nissan 2015CY Global Electrification by Major Manufacturer % by Electrification Type GM Daimler VW Ford BMW Toyota Hyundai Honda BEV PHEV HEV Note: -All data is from CSM Worldwide global comprehensive vehicle production and sales forecasts, 3/05/10. -Major manufacturers are those with >50,000 electrified vehicle sales projected in 2015 Page 7
What does it take to support a sustainable mass market electrified vehicle? Customer-Focused Great Features Functional Trustworthy Technology Delivers Transportation Needs Affordable Est. Battery Pack Cost per kwh $750 $500 $250 Electrification System On-Cost BEV PHEV HEV 100 mile range HEV PHEV BEV PHEV / BEV costs converge due to base P/T deletion 2012CY 2016CY 2020CY High Vol 250k+ Page 8
Drivers of Hybrid Technology Evolution Electrification Technologies Background Function System Engine stop/start Engine Assist (Downsize) Regenerative Brake Electric launch All Electric Drive Fuel Economy Improvement Start/Stop (14V) YES (> 0.3 sec ) Minimal (< 3 kw) Minimal (< 3 kw) NO NO 3-6% Mild Hybrid (42V) YES Modest (< 9 kw) Modest (< 9 kw) NO NO 8%/12% Medium Hybrid (100+V) YES YES YES (full benefit) NO NO 40% Full Hybrid (300V) YES YES YES YES Yes 55%+ Plug In Hybrid (based on Blended Full) YES YES YES YES Yes 80%+ Battery Electric Vehicle YES No Engine YES YES YES Infinite Page 9
Drivers of Hybrid Technology Evolution HEV PHEV BEV Components HEV PHEV BEV Battery Yes (Power) Yes (Energy) Yes (Energy) Electric AC Yes Yes Yes DC/DC Converter Yes Yes Yes Regen Brakes Yes Yes Yes Motor(s) Yes Yes Yes Inverter(s) Yes Yes Yes Transmission Yes Yes No EV Gearbox No No Yes Charger No Yes No Yes Page 10
Drivers of Hybrid Technology Evolution SMARTGAUGE WITH ECOGUIDE New Knowledge and Skills Needed: Customer and Engineer New concepts required for Plug-In vehicles GRAPHICALLY TRACKS DRIVER S EFFICIENCY Page 11
Future State: Integrated Energy World with Utilities & Autos Working Together Renewables Wind/ Solar Off Peak Exploring Customer Value From Plugging In All New System View: What components are in the new system? How will the grid and energy flow be controlled in the future? Who are the parties involved? What new integration is needed? What are the key technologies and standards needed? Many Open Questions Advanced Lithium Batteries for Mobile and Stationary Uses Utility Data Management and Operations Integrating a new energy eco-system Smart Appliances Page 12
Deep Understanding V2G Connectivity Distribution Substation Existing design: 29A 56A/ home* per standard utility sizing methods * Multiplication factor (Coincidence factor) varies from region to region and utility to utility. AC/DC Multiple Home Pole Transformer AC/DC Existing design: 31A 59A/ home* per standard utility sizing methods Home AC/DC Existing design: 58A 87A (not including charger) per NEC220 Detroit Edison connects 5-7 homes to a 25 kva transformer A 240V @ 30A circuit can provide ~ 6kW continuous charge Charge Plug/Cord Level 1 & 2 available per SAE J1772 When a Plug-in vehicle is Charging, it approximately doubles the household energy load + Battery Existing battery: capable of charging at the vehicle worst case drive cycle discharge rate. Vehicle Existing wiring: capable of worst case drive cycle Page 13
Infrastructure Charging Customer Segments Priority Most Frequent Less Frequent Main charge spot located in garage or driveway of residence. For fleets customers, main charge location is fleet depot where multiple chargers could be installed. Main charge location is work allowing urban commuters/street parkers to have reliable charge. Also allows extended range for home chargers. For occasional trips, municipal charge locations could be viable option. If reservation system is implemented, could be used for main charge location. Charging Infrastructure is a key enabler to Plug-In Vehicles Page 14
Background Ford Plug-In Vehicle Charging Options 25 Directional Charge Time (hours) 20 15 10 5 BEV s PHEV s 8 Hours/Overnight 0 Level 1 Level 2 Level 3 (80% SOC) Directional Installation Costs: $0 - $200 $2,000 $50,000 Target overnight charging (less than 8 hours) - base assumption that Level 2 installation will be required for BEV s and optional for PHEV s Page 15
Hybrid Battery Technology Comparison 3500 Specific Power (W/kg) 3000 2500 2000 1500 1000 NiMH HEV Li-Ion HEV Li-Ion PHEV Different Cells required for different applications Li-Ion BEV 500 0 0 20 40 60 80 100 120 140 160 Specific Energy (Wh/kg) Page 16
BEV Necessary Battery Technology Evolution EV Battery EV Battery 23kWh 500lbs 125 liters EV Battery 23kWh 400lbs 100 liters 23kWh 250lbs 75 liters Future 2 nd Gen Goal 1 st Gen For weight, size, performance and affordability evolution is required Fuel Tank 23kWh 125lbs 60 liters Page 17
USABC EV Battery Goal Analysis Specific Discharge Power (400W/kg) 100% Temperature Range (-40 to +85C) 75% Specific Charge Power (200W/kg) 50% Selling Price ($100/kWh @10k units/year) 25% 0% Power Density (600W/liter) Calendar Life (10Yrs) Specific Energy (200Wh/kg) Cycle Life (1000 cycles to 80% DOD) Energy Density (300Wh/liter) USABC Goal Li-Ion Calendar Life, Temperature Performance, Energy Density, Real World # Charge/Discharge (2000+) Cycles, and Cost require significant improvements mass market, customer driven products. Page 18
Plug In Vehicle Li-Ion Cell Technology 2500 2000 USABC PHEV-10 Specific Power (W/kg) 1500 1000 Present Technology Options Technology Need USABC PHEV-40 500 0 80 100 120 140 160 180 200 220 Specific Energy (Wh/kg) 3 4 Cell Technology Innovation Cycles needed for Mass Market, Customer Driven Products Page 19
Lithium Ion Battery Cost A Lithium Ion Cell (Power for HEV and Energy for PHEV & BEVs) ismade up of Cathode, Anode, Separator, Electrolyte, and Structural Hardware (foil, case, terminals, and Header) Materials used in both cells are generally the same (recipe is unique) Material cost breakdown of a Lithium cell varies slightly with different chemistries Current metric for HEV cells is $/kw. Current metric for PHEV orbev cells is $/kwh. Forecast of 2012 industry prices for cells only is: $20-$30/kW HEVs and $500-$1000/kWh for PHEVs/BEVs. Range is due to varying assumptions of R&D, capital depreciation, labor, and other markups as the automotive battery industry matures Laptop Lithium cell material cost per kwh at high volume (300 mil cells/year) is less than $200/kWh. Automotive qualification forquality and durability adds a premium. Page 20
HV Battery Breakdown HV Battery Cost Contribution 100% 90% 80% Depreciation, R&D & other Markups. Up to 50% of price 70% 60% 50% 40% System Cells Hardware 30% Cathode 22% 30% 20% Cell Material Breakdown Anode 14% 10% 0% BEV HEV Lithium: rare earth element analysis suggests lithium supply is available to support needs to 2050 Electrolyte 15% Separator 19% Page 21
Integrated Approach With Shared Responsibility The development of a sustainable electrified market will be dependent on close cooperation between many key stakeholders Governments Manufacturers Consumers Battery Suppliers Utilities NGO s Page 22
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