Quallion Matrix Battery Technology for Lithium-ion Lead Acid Replacement & Wide Operating Temperature Range Cells. May 2011

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Quallion Matrix Battery Technology for Lithium-ion Lead Acid Replacement & Wide Operating Temperature Range Cells May 2011

Introduction Employing a core strategy of leveraging R&D, niche focus, complementary and synergistic market entries Largest manufacturer of Lithium cells in the U.S. Best-of-breed system level approach for advanced battery technologies involving a core expertise from material selection to cell design and final battery pack configuration Headquarters: Sylmar, CA Founded 1998 Products: Materials Cells Primary Secondary Polymer Batteries Matrix Battery (MBD) Intellectual Property Portfolio Zero-Volt SaFE-LYTE End Markets Aerospace Defense Medical Utility Vehicle Employees 161 Sites Sylmar, California Detroit, Michigan New York, New York

Targeting and Dominating Key Niche Markets Quallion focuses on organic growth within niche markets rather than highly commoditized markets Medical Defense Aerospace Green Technology

Overview of Battery Industry Battery Market Stratification Battery Market Stratification Materials Cell Design Electronics Battery Pack Chemistries can be varied for highenergy, power, rate and capacity, safety. Cell configurations include prismatic, cylindrical, flat stack, wound, large, small, polymer (pouch), hard case. Cell and battery management, power, safety, interface, communication (e.g., SM/CAN), balancing, state of health monitoring, modeling, grade of board parts. Pack design: safety, interconnects, spacing of cells, thermal gradients, heat ejection, environmental requirements, interface to application.

Lithium-ion Challenges for Lead Acid Replacement Cost Mitigated lifetime use, as long as lead acid is utilized for deep discharges Electronics Battery must contain power electronics capable of high discharges while managing for external shorts Safety for overcharge, overdischarge and over/under voltage Charge management/regulation to ensure proper system function

Quallion Matrix Technology

Patented Quallion Matrix TM Battery Structure Balancing Circuit or Connector to balancing circuit Bus bar Cell or Battery Quallion Patents: US7479346B1 US7573233B1 US7573234B1 Balancing line 7

Quallion Matrix Technology Safety Aspects

Cell : 18650 Matrix Battery: Advanced Safety Feature

Conventional Battery: Thermal Run-away Propagated to Entire Battery 6+ 4+ 2+ 5-3- 1-

Matrix Battery: Thermal Run-away Localized to Only Cell #2

Matrix Battery: Cell #3-6 Remain Functional

Partial Penetration Test Conditions

Partial Penetration Test Results

Crush Test Conditions

Crush Test Results

Quallion Matrix Technology Survivability

Increased Load Test on Matrix TM Battery A cell was removed at every 1000 cycles from pack Test pack: 8S-12P Matrix LEO cycle continued with no impact on battery voltage after 3750 Cycles with Three Failed Cells Test Parameters - 90-minute orbit - Charge at 6 A to 32 V clamp with a taper to end of the charge period of 60 minutes - Discharge current 9.6 A for 30 minutes - DOD: 40% - Removed one cell at 1000th cycle, second at 2000th cycle and the third at 3000th cycle; to understand the performance of the battery with three failed cells

Survivability Comparison: Matrix TM vs. Conventional

Conventional Pack: Failed in Overcharge at First Cycle

Matrix Battery: No Overcharge & Survived an Additional 19 Cycles

Quallion confidential and proprietary Matrix Battery: Less Balancing Need for Pack after 300 Cycles Pack I OCV / V OCV / V 4.065 4.06 4.055 4.05 4.045 4.04 4.035 4.03 4.025 Pack II 4.065 4.06 4.055 4.05 4.045 4.04 4.035 4.03 4.025 Matrix Pack 0 1 2 3 4 Cells Conventional Pack 18 17 14 10 9 7 6 5 3 1 2 8 4 11 12 13 15 16 0 1 2 3 4 Cells 1 8 1 0 _ + 6 1 4 1 7 9 5 1 4 _ + 1 3 2 1 1 1 5 7 3 8 1 6

12S-4P with various HE/HP cell Mix Matrix Battery: Flexible Power/Energy Ratio

12S-4P Hybrid Quallion Matrix TM Battery A matching correlation between design and performance 3500 3000 Energy density 400 Power / W 2500 2000 1500 1000 Discharge Power Charge Power 200 Energy Density / Wh 500 0 4E0P 3E1P 2E2P 0E4P 0

Quallion HAM Technology

Quallion Heat Absorption Material (HAM )Technology 100 80 Heat flow / mw 60 40 20 0 0 50 100 150 200 250 Temperature / C

Overcharge Test with and without HAM Test Battery 18650 (1.5Ah high power) - 10 cells in Parallel connection. Capacity- 15.0 Ah with HAM sleeve Overcharge Test Condition Charge battery pack @6A to 12V, hold voltage @12V till temperature dropping without HAM sleeve

Thermal Run-away Propagation without HAM TM Connection After Test Insulation After Test

Thermal Dissipation with HAM TM HAM TM melted and latent heat stopped thermal run-away Connection After Test Insulation After Test

Quallion Matrix Technology In Large Lithium-ion Lead Acid Replacements

Quallion 24V, QL072KM 1250A Capable Battery System for HMMWV Discharge time at various rates Current Lead-Acid Battery 12V x2series, 65Ah, 59lb x2 Quallion Drop-in Li-ion APU with Safety Circuit and Fuel Gauge 24V, 72Ah, 42lb

24V, 50Ah Lithium-ion Battery for U2 Vehicle Li-ion Tech Demonstration Unit using QL038KM unit 38 Ah capacity Flight Demonstration Fall 2008 with future scale up to 50Ah QL038KM -30 C, 30A discharge (discharged 98% of nameplate capacity)

24V, 8.25Ah Lithium-ion EBPS for C-17 Aircraft Qualification Program to Replace Current Ni-Cd System Low maintenance & long life Fully integrated charge control electronics, battery management electronics & BIT/SOC capability -65ºF to 160ºF (with heaters) 8.5lbs Full charge in 75 minutes over 21V to 32V input range Plug-N-Play

24V Lithium-ion/Lead Acid Replacement 1100 amp pulse capability 38 Ah capacity 24 lbs 24V, 38Ah Lithium-ion Battery for Little Bird, MH-47 & MH-60 Vehicles

Wide Operating Temperature Cell Designs

Quallion Q18650-HP At -40 C, 30C rate discharge capable Cell Specifications True Capacity / mah* 1000 Energy Density / Wh/kg* 92 Energy Density / Wh/l* 217 Dimensions / mm 65 x 18 (H x d) Weight / g* 39 ± 0.75 * Calculated values based on design Operating Range = -40 C to +71 C Heritage Materials Active materials are the same as Quallion SATELLITE cells

Voltage / V 4.25 4.00 3.75 Discharge Rate Data of Quallion HP Cell Q18650-HP Cell Chemistry: NCA/C Electrolyte: A-1 Discharge of Cell from 0.2A to 30A 0.2A 0.5A 1A 2A 5A 10A 15A 20A 25A 30A 3.50 3.25 3.00 2.75 2.50 0 10 20 30 40 50 60 70 80 90 100 Percentage of 1C Room Temperature Capacity / % Charge : 1.0A, 4.1V CCCV C/20 ma cutoff at RT Discharge : 0.2, 0.5, 1, 2, 5, 10, 15, 20, 25, 30A to 2.7 V at RT

Voltage / V 4.25 Discharge Temperature Data of Quallion HP Cell at 30C Rate 4.00 3.75 3.50 3.25 3.00 1Ah Q18650-HP Chemistry: NCA/C Electrolyte: A-1-40 C -20 C 0 C +25 C +40 C +60 C +71 C 2.75 2.50 2.25 2.00 1.75 1.50 1.25 1.00 0.00 0.10 0.20 0.30 0.40 0.50 0.60 0.70 0.80 0.90 1.00 1.10 1.20 Discharge capacity / Ah Charge : 1.0A, 4.1V CCCV C/20 ma cutoff at RT Discharge : 30CA to 1.5V at -40, -20, 0 C or 2.7V at RT, +40, +60, and +71 C Single cell; 29 cycles at different rates and temperatures

Quallion High Power 2.3Ah Cell Dimensions (without tabs) 5.5 x 2.25 x.25 Weight 75g

Pouch Cell Cell Specifications Rated Capacity / mah* 2300 Energy Density / Wh/kg* 110 Energy Density / Wh/l* 205 Dimensions 5.3 x 2.1 x 0.25 (H x W x T) Weight / g 75 ± 0.75 Operating Range = -40 C to +70 C Heritage Materials Active materials are the same as Quallion SATELLITE cells USG T3 program enables Quallion to produce Cathode and Anode material in-house by 2012

Retention of 1C Capacity / % Rate Test Summary at RT 110 100 90 80 70 60 50 40 30 20 10 0 Prototype 1 Prototype 2 Pre-Production 0 2 4 6 8 10 12 14 16 18 20 22 24 26 28 30 32 34 36 38 40 Rate Charge : 1.0C A, 4.1V CCCV C/20 ma cutoff at RT Discharge : 0.2, 0.5, 1, 2, 5, 10, 15, 20, 25, 30C A to 2.7 V at RT

Voltage / V 1C Discharge Rate Curve at RT 4.25 1C Discharge Prototype 1 4.00 3.75 Prototype 2 Pre-Production 3.50 3.25 3.00 2.75 2.50 0.00 0.20 0.40 0.60 0.80 1.00 1.20 1.40 1.60 1.80 2.00 2.20 2.40 2.60 Discharge capacity / Ah Charge : 1.0 CmA, 4.1V CCCV C/20 ma cutoff at RT Discharge : 1 CmA to 2.7V at RT

Voltage / V 15C Discharge Rate Curve at RT 4.25 15C Discharge 4.00 3.75 Prototype 1 Prototype 2 Pre-Production 3.50 3.25 3.00 2.75 2.50 0.00 0.20 0.40 0.60 0.80 1.00 1.20 1.40 1.60 1.80 2.00 2.20 2.40 2.60 Discharge capacity / Ah Charge : 1.0 CmA, 4.1V CCCV C/20 ma cutoff at RT Discharge : 15 CmA to 2.7 V at RT

Voltage / V 30C Discharge Rate Curve at RT 4.25 4.00 3.75 30C Discharge Prototype 1 Prototype 2 Pre-Production 3.50 3.25 3.00 2.75 2.50 0.00 0.25 0.50 0.75 1.00 1.25 1.50 1.75 2.00 2.25 2.50 Discharge capacity / Ah Charge : 1 CmA, 4.1V CCCV C/20 ma cutoff at RT Discharge : 30 CmA to 2.7 V at RT

Voltage / V 1C Discharge at -40 C 4.25-40 C Discharge @ 1C 4.00 Prototype 1 3.75 3.50 Prototype 2 3.25 3.00 2.75 2.50 2.25 2.00 0.000 0.250 0.500 0.750 1.000 1.250 1.500 1.750 2.000 2.250 2.500 Discharge capacity / Ah Charge : 1 CmA, 4.1V CCCV C/20 ma cutoff at RT Discharge : 1 CmA to 1.5 V at -40 C

Voltage / V 15C Discharge at -40 C 4.25 4.00 3.75 3.50 3.25-40 C Discharge @15C Prototype 1 Prototype 2 3.00 2.75 2.50 2.25 2.00 1.75 1.50 1.25 1.00 0.000 0.250 0.500 0.750 1.000 1.250 1.500 1.750 2.000 2.250 2.500 Discharge capacity / Ah Charge : 1 CmA, 4.1V CCCV C/20 ma cutoff at RT Discharge : 15 CmA to 1.0 V at -40 C

Percentage 1C Room Capacity / % C/2 Charge/Discharge Cycling of Prismatic Cell at -20 & -30 C 105 100 95 90 85 80 75 70 65 60 55-20 C Cycling -30 C Cycling Cell 13 2.30Ah Prismatic Cell Chemistry: NCA/C Electrolyte: M-1 Capacity Check: Charge: 1CmA to 4.1V CCCV C/20 ma cutoff at RT Discharge : 1C A to 2.7 V at RT 0 2 4 6 8 10 12 14 16 18 20 22 24 Cycle number Cycles 0, 11, 12 and 23 represent capacity checks at RT Charge : C/2 A, 4.1V CCCV C/50 ma cutoff at -20 & -30 C Discharge : C/2 A to 2.5 V at -20 & -30 C

Quallion 10Ah Cell with Wide Operating Temperature Cell Specifications Theoretical Capacity / mah* 10000 Energy Density / Wh/kg* 82 Weight / g* 450 * Calculated values based on design Operating Range = -40 C to +71 C Heritage Materials Active materials are the same as Quallion SATELLITE cells Wide temperature electrolyte 5000 DOD 60% to 80% Cycling over Wide Temp Temperature Spectrum Cell to undergo life testing February 2011

Vincent Visco 818.833.2000 vincev@quallion.com www.quallion.com