Progress in Materials Development and Production for Zero Emissions Powertrains

Progress in Materials Development and Production for Zero Emissions Powertrains Dr Peter Gray 24 February, 2016

Overview 01 Johnson Matthey Plc 02 JM Activities in Low and Zero Emissions Vehicles 03 Fuel Cell Vehicles Technology Status 04 Progress in Materials Development and Production for Fuel Cell Vehicles 05 Summary

01 Johnson Matthey Plc 02 JM Activities in Low and Zero Emissions Vehicles 03 Fuel Cell Vehicles Technology Status 04 Progress in Materials Development and Production for Fuel Cell Vehicles 05 Summary

Johnson Matthey Plc Well Established Company Established 1817 Floated in 1952 FTSE 100 since 2002 Leading global positions in all of its major businesses Award-winning commitment to sustainability Regularly voted one of Britain s most admired companies MacRobert Award for Engineering in 1980 and 2000 Large Cap Business of the Year 2011 Best Annual Report & Sustainability & Stakeholder Disclosure 2012 Numerous Queen s Awards for Enterprise High Investment Levels R&D spend 169.9m (2014-2015) Group Technology Centres in UK, USA and South Africa Capital investment of ~ 909m in the last 5 years 19 th century origins as high-quality, reliable refiner of gold & silver 20 th century expansion in platinum group metal refining & products 21 st century expansion into base metal catalysis, other environmental and process technologies, other pharmaceutical and fine chemical products Key Metrics (2015) Market capitalisation 6.5bn Sales excluding precious metals 3.12bn Underlying profit before tax* 440.1m Return on invested capital 18.8% Employees worldwide 13,000 Sales excluding precious metals analysed: * Restated for IAS 19 Precious Metals Products 16% Fine Chemicals 10% Process Technologies 19% By Division New Businesses 1% Emission Control Technologies 53% By Destination ROW 12% Rest of Asia 11% China 10% Europe 33% NA 34% In >30 Countries

JM Activities in Low and Zero Emissions Vehicles Emission Control Technologies Emission Control Systems Light Duty Gasoline and Diesel Catalysts Diesel particulate filters Selective catalytic reduction Heavy Duty Diesel and non-road applications Stationary Emissions Control Process Technologies Chemicals Chemical Technologies Syngas Chemical Catalysts Oil and Gas Refineries Purification Tracerco Precious Metal Products Services Platinum Marketing and Distribution Refining and recycling Manufacturing Platinum products Glasses and enamels Precious metal powders Fine Chemicals Pharmaceutical Active Pharmaceutical Ingredients (API) Increasing focus on environmental technologies: > 50% of profit derives from products that directly benefit the environment 2016 Johnson Matthey Fuel Cells Ltd New Businesses Battery Technologies Battery Electric, Plug-in Hybrid, mild and micro hybrid vehicles Advanced Battery Materials Lithium ion batteries Developer and assembly of advanced automotive battery systems Water Purification, metal scavenging Fuel Cells Automotive, portable and stationary power sectors Membrane electrode assemblies & sub-components Fuel cell catalysts Reforming and gas processing catalysts

Global Drivers Continue to Provide Opportunities for Powertrain Technology Increased demand for mobility, focus on emissions Population Growth Urbanisation Increasing Wealth Tighter emission regulations, low CO 2, zero emissions Environmental Factors Climate Change Regulation Evolving Technology Natural Resource Constraints Improved fuel efficiency, alternative fuels, sustainable energy generation Health & Nutrition Ageing Population Focus on air quality to improve public health 2016 Johnson Matthey Fuel Cells Ltd

Johnson Matthey Battery Technologies and Johnson Matthey Fuel Cells Johnson Matthey Battery Technologies spans the battery value chain Acquisition of Axeon Group 2012. Acquisition of A123 assets & Clariant. Expanded internal R&D and product development programs. Further acquisitions being pursued. Johnson Matthey Fuel Cells develops and manufactures Cell components Membrane electrode assemblies (MEAs) and MEA sub-components and catalysts Range of automotive, stationary and portable fuel cell applications. 2016 Johnson Matthey Fuel Cells Ltd

Johnson Matthey Fuel Cells - Products JMFC s key product is the MEA (membrane electrode assembly) - a complex laminate of carbon fibre based gas diffusion layers, catalysed electrode layers and a proton conducting polymeric membrane. Producing high quality MEAs requires skills in materials science, chemistry, physics, catalysis, production engineering and quality control. The cell is completed by two conducting plates that distribute gas uniformly over the outer surfaces of the MEA sandwich. In automotive fuel cell engines the cells are stacked in a bipolar arrangement to provide the total power and I-V characteristics required for the electric powertrain.

Fuel Cell Vehicles Largest single long term market for fuel cells. Fuel cell car programmes influence materials costs across the industry. Drivers behind electric drivetrains are strong. Legislation and climate change. Decarbonisation of transport and power generation. Consensus (OEMs, utilities, oil companies) that the future will see a mixture of technologies: All sorts of hybrids Small city cars as pure battery electric vehicles (BEV) Larger, longer range fuel cell vehicles (FCV) 2016 Johnson Matthey Fuel Cells Ltd

Technology Status Performance and durability have been demonstrated to meet specified requirements. Development work is focussed on reliability and resilience in real world conditions. The achievement of cost targets continues to be a challenge with focus on: Materials Volume manufacturing 2016 Johnson Matthey Fuel Cells Ltd

Real world - Cold starts 2016 Johnson Matthey Fuel Cells Ltd

Real world - Hot hill climb 2016 Johnson Matthey Fuel Cells Ltd

Real world Multiple stop/starts 2016 Johnson Matthey Fuel Cells Ltd

Real world Cell Reversal damage 2016 Johnson Matthey Fuel Cells Ltd

Hydrogen starvation 0 V 0.7 V H 2 2H + + 2 e - H + H + 2H + + ½O 2 + 2e - H 2 O H 2 O 2 Normal operation single cell

Hydrogen starvation e - - 1 V X +1.7 V +0.7 V X ½C + H 2 O ½CO 2 + 2H + 2e - H + H + 2H + + ½O 2 + 2e - H 2 O O 2 X X Hydrogen starvation single cell

Corrosion resistant carbons [0.9 V 30sec 1.4 V 30sec ] Voltage at 500 ma/cm 2 Voltage at 1000 ma/cm 2 Improved carbon supports corrosion without loss in performance Tolerance to oxidative potentials; SU / SD Require high carbon surface area to ensure Pt dispersion Voltage cycling test Cathode /Carbon #3 = best combination of Corrosion resistance Pt ECA and stability ECA retention

Cell reversal protection Oxygen evolution reaction (OER) catalyst

Hydrogen starvation e - - 0.7 to - 0.9 V X +1.4 to 1.6 V +0.7 V X X ½C + H 2 O ½CO 2 + 2H + 2e - H 2 O ½O 2 + 2H + 2e - H + H + 2H + + ½O 2 + 2e - H 2 O O 2 X Hydrogen starvation with Oxygen evolution reaction (OER) catalyst

Membrane durability 2016 Johnson Matthey Fuel Cells Ltd

Volume manufacture the next challenge 2015-2017 100s of cars 2018-2022 x10k of cars 2025 100 k cars Millions of MEAs 10x millions of MEAs 2013-14 10s of cars Thousands of MEAs 10s of thousands of MEAs 2016 Johnson Matthey Fuel Cells Ltd

JMFC Investment High Volume Manufacturing Catalyst layer deposition has evolved Originally screen printing Now continuous roll-to-roll coating Discrete images Class 1000 cleanroom MEA assembly Originally discrete part assembly Now automated roll assembly Class 1000 cleanroom In-Line Quality Control XRF, thickness, defects, part traceability 2016 Johnson Matthey Fuel Cells Ltd

Summary Global Drivers continue to provide opportunities for powertrain technology evolution increasing focus of Johnson Matthey on environmental technologies for Low and Zero Emissions Vehicles. Increasing product portfolio for Zero Emissions Vehicles Johnson Matthey Battery Technologies and Fuel Cells. Recent acquisitions in Johnson Matthey Battery Technologies spanning the battery value chain. Performance and durability of existing PEM Fuel Cell MEA technology has been demonstrated to meet requirements to allow introduction of fuel cell vehicles. Development work is now focussed on successfully improving the reliability and resilience of Fuel Cell materials in real world (mass market) conditions, with cost reduction and quality control achieved through volume manufacturing methods.