1 1 ALTERNATIVE POWER IN THE GLOBAL SUPPLY CHAIN MILITARY AEROSPACE / / / GLOBAL TRANSPORTATION / / / INDUSTRIAL / / / GRID STORAGE Large Format Lithium Ion Batteries ENERDEL is developing technology to serve global markets with energy storage solutions
WHO WE ARE ENERDEL is part of the ENER1 portfolio www.ener1.com NASDAQ: HEV Current Estimated Market Cap $600-700M Large-Format, Highenergy Lithium-Ion Battery Solutions Alternative Fuel Cell Research & Development High-energy Lithium Ion Battery Production Research & Development Nanotechnology and Film Disposition 22
GLOBAL SUPPLY STRATEGY 33
US OPERATIONS INDIANAPOLIS Heritage 19 years : Ener1 Lithium Group Established in 1990 Delphi Lithium Group 1998 EnerDel 2004 Personnel ~ 170 Employees Hague Rd. Existing Space Total Area: ~ 98,000 ft 2 Significant Capital Investment Allocated For Production Readiness. Mixers, Proprietary Coating Line, NMP Recovery System, Automation, Completely Automated Electrode Stacking Main Product Lithium Ion Cell for Automotive Applications 44
US OPERATIONS NOBLESVILLE 38,500 Ft 2 of Mfg., Test & Offices Lease signed in September, 2008 Reconditioned Building & Site 3/09 Main Product Battery pack assembly and testing Sample Build Area Jan. 2009 1st Module & Pack Assembly Jan 2009 32 Employees May 2009 BMS Engineering & Test May 2009 55
ENERDEL S LITHIUM-ION ENERGY STORAGE SYSTEM Cell Advanced Prismatic Design Module High Performance Li-Ion Cells Integrated Thermal Management Voltage & Temperature Monitoring System Integration of Multiple Subsystems Battery BMS Software Mechanical Thermal Robust Sub-System Design & Integration Required For a Successful ESS Solution 66
GLOBAL LITHIUM BATTERY MARKET YR 2020 $66B Source: Deutsche Bank 7
MARKET SECTORS ENERGY SYSTEMS Transportation Energy Storage Government Military Maritime Commercial - Consumer Products Aerospace 88
RECENT DEVELOPMENTS December 09: ENERDEL partners with Mazda and Itochu for smart grid integration project November 09: ENERDEL enters utility energy storage market to supply new DOE-backed smart grid program November 09: ENERDEL wins U.S. Army contract to develop batteries for new Hybrid Humvee September 09: ENER1 teams with Volvo Car Corporation to provide lithium-ion batteries for the Volvo C30 battery electric vehicle prototype August 09: ENER1 takes 31% stake in EV manufacturer, Think Global August 09: ENERDEL selected to receive $118.5 M in federal grant funding under the stimulus package July 09: ENERDEL and the Nissan Motor Co. to research electrical conductive material July 09: ENER1 & Think selected for Japan Postal Service EV Conversion Program July 09: ENERDEL to supply lithium-ion batteries for Volvo s V70 PHEV demonstration program July 09: ENERDEL awarded $3.3 million for safety research on auto lithium-ion battery May 09: AC Transit selects ENERDEL to supply batteries for next-generation fuel cell buses; additional partners UTC and VanHool 99
TH!NK CITY VEHICLE INTEGRATION Supply agreement with development phase Production 2010 Integrated EnerDel battery system into vehicle: Mechanical Electrical (Power, Signal, CAN) Thermal Management Successfully accomplished Vehicle traction drive Regen acceptance Charging system interface 10
VOLVO C30 COUPE VEHICLE INTEGRATION The C30 Battery Electric Vehicle (BEV) Part of Volvo Car Corporation s DRIVe Towards Zero Strategy zero emission, city commuter car 150km (95 mile) range covers the daily mobility needs of more than 90 percent of European commuters. The EnerDel battery is a 'split battery', with an energy content of over 24 kwh nominal energy. Follows the recently announced collaboration for the plug-in hybrid V70 demonstration vehicles being road tested in Europe, which also feature EnerDel lithium-ion batteries. 11
XM1124 HMMWV VEHICLE INTEGRATION Working with US Army to develop a nextgeneration battery system for the Humvee EnerDel Will provide: Multiple Chemistries Complete Architecture Thermal Management System Electronics TARDEC will be testing two of EnerDel s chemistries EnerDel will successfully demonstrate: Two systems that will be exposed to extreme performance situations 12
AC TRANSIT BUS FUEL-CELL/ELECTRIC HYBRID Sixteen new, next-generation, hybrid-electric fuel cell buses for Alameda-Contra Costa Transit District (AC Transit) Demonstrates scalability for use in heavy-duty applications. Hydrogen tanks on the roof of the bus will provide a range of approximately 300 miles. Collaboratively designed by EnerDel, AC Transit, Van Hool (the bus manufacturer and integrator), and UTC Power, a United Technologies Corp. (the fuel cell system provider). Twelve will be the backbone of AC Transit's fuel cell fleet in the California Air Resources Board's only Advanced Zero-Emission Bus Demonstration program. Four will be operated by various transit agencies under the Federal Transit Administration's National Fuel Cell Bus Program. 13
JAPAN S TSUKUBA PROJECT Three Mazda 2 cars will be converted to EVs EnerDel will supply the advanced battery systems Uses proprietary EV drive-train system, developed for the Th!nk City Slated to begin in March of 2010 Offered to the public through a car-sharing service, akin to America s Zipcar Groundbreaking project linking up all of the essential building blocks needed to integrate the smart grid, electric vehicles and renewable energy technologies. First time that EVs, stationary grid storage, solar power and rapid charging infrastructure are combined in a real-world operating environment. Located outside Tokyo in Tsukuba City, Japan a major center for scientific R&D Involves more than a dozen major partners from around the globe Illustrates the opportunities in the global clean tech marketplace. 14 14
Convenience Store TSUKUBA: A GREEN PROTOTYPE COMMUNITY City Hall EV Sharing Station Fast Charge Station PV Arrays, IES (ENERDEL) Rapid Transit System Mazda 2 (EV) ENERDEL Battery EV Sharing Station Fast Charge Station PV Arrays, IES EV Service Station Data Center EV Sharing Station Fast Charge Station EV Sharing Station Fast Charge Station PV Arrays, IES 15 15
LIFE CYCLE ANALYSIS VS. COMPARABLE GASOLINE-FUELED VEHICLE ENERGY ITEMS HYBRID ELECTRIC VEHICLE ELECTRIC VEHICLE ENERGY USE PER UNIT OF PRODUCTION ENERGY COST PER UNIT OF PRODUCTION GREENHOUSE GASES SULFUR DIOXIDE NITROGEN DIOXIDE PARTICULATES -39% -50% -39% -64% -39% -73% -39% -60% -39% -92% -39% -83% As compared to lightweight gasoline-fueled car, driven for 100,000 miles (baseline). Includes all aspects from extraction of raw materials through recycling/disposal at end of life. Includes batteries reconditioned and repurposed after 100,000 miles vs. disposal. 16
ONE STEP FURTHER Reduce, Recycle, Reuse Zero Landfill Goal Copper, steel and aluminum recycled (bulk of cell material) Bubble wrap/shrink wrap recycled Wood pallets and boxes that are not reused are recycled for mulch Plastics (#1 & #2), glass, cardboard, recycled Paper shredded for recycle (confidential and non-confidential) All other non-hazardous trash sent to Covanta to be burned for energy for downtown Indianapolis Hazardous production cleaning solvent wastes recycled for fuel blending Primary coating solvent collected for off-site recycle and reuse 17
SUMMARY Battery-based energy storage systems are versatile and efficient Vehicles large and small Grid/home/office energy storage Alternative power storage and availability shifting Utility load shifting Rapidly deployable emergency power ARRA and other funding will help accelerate the migration from traditional fuels to alternative energy sources Communication technology smart grid Production capacity batteries and vehicles Infrastructure filling stations 18
HISTORICAL SUPPLY CHAIN DYNAMICS 1900 ~ 20 million horses ~ 2500-4000 cars Steam (~49%), Electric (34%), Gasoline (17%) 90% of available roads were unpaved Gasoline was waste product of kerosene production car owners went to the kerosene plant to get their gasoline or filled up from a barrel at the local grocery (using a funnel) 1905 First purpose-built gas station opened (St. Louis) 1907 Second gas station opened (Seattle) 19
SUPPLY CHAIN DYNAMICS 1908 1909 1911 1920 1932 1970 2000 2008 The Model T debuted 312,000 cars in the US Gasoline outsold kerosene ~ 8 million cars in the US ~ 15,000 gas stations The last steam-powered car was built > 200,000 gas stations in US > 133 million cars in the US ~ 107,000 gas stations in the US 20