LION Power Strategy of Degussa Safety Improvements Based on Raw Materials and Ceramic Separators

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1 LION Power Strategy of Degussa Safety Improvements Based on Raw Materials and Ceramic Separators

2 Degussa Portfolio CONSTRUCTION CHEMICALS FINE & INDUSTRIAL CHEMICALS PERFORMANCE MATERIALS COATINGS & ADVANCED FILLERS SPECIALTY POLYMERS Admixture Systems North America Building Blocks Superabsorbents Coatings & Colorants High Performance Polymers Admixture Systems Europe Exclusive Synthesis & Catalysts Care Specialties Aerosil & Silanes Specialty Acrylics Admixture Systems Asia/Pacific Peroxygen Chemicals Oligomers & Silicones Advanced Fillers & Pigments Methacrylates Construction Systems Americas C 4 -Chemistry Food Ingredients Advanced Polymer Shapes Construction Systems Europe Feed Additives EXECUTIVE COMMITTEE TECHNOLOGY & INNOVATION COMMITTEE CREAVIS

3 Figures of Degussa AG Degussa is the global market leader for special chemicals Key Figures (2004) Sales Euro 11,244 million 13% thereof in Automotive Industry Euro 1,500 million EBIT Euro 965 million Income before income taxes Euro 616 million Employees 46,

4 Degussa s LION Power Concept LION Power combines the Li-ion battery material activities of Degussa with all core competencies in the field of inorganic particles as well as Fine-Chemicals LION Power Increased Safety & Performance Intern. Start-up SEPARION Advanced Separator increased safety and performance commercially available JV Degussa-ENAX* Anodes commercially available Cathodes commercially available higher safety * Closing pending Product-Pipeline Anode materials more capacity Cathode materials improved safety Electrolytes low flammability Core Competencies of Degussa

5 Degussa s Market Approach to the Lithium-Ion Battery Industry SEPARION Separators

6 New Production Plant for SEPARION Separators October

7 The Problem: Nail Penetration Test Often Failed in Cells with PO Separators video Temperature [ C] Temp1- top side Temp2-bottom side Penetration depth U cell Penetration depth [mm], Cell voltage [V] Time [sec] 0 Monitored test data and pictures of the cell during and after the test; Weight loss: 56.1%

8 The Solution: SEPARION Separators Improve Nail Penetration Tolerance Temp1- top side Temp2-bottom side Penetration depth U cell video Temperature [ C] Penetration depth [mm], Cell voltage [V] Time [sec] Test data monitored during the test and picture of the cell during and after the test; Weight loss: 0.4%

9 SEPARION Benefits for Li Ion Batteries SEPARION Product Features flexible continuous ceramic with a ultra thin non woven made of oxides of alumina, zirconia and silica SEPARION Benefits for the Battery demonstrates an excellent temperature stability shows a superior chemical resistance stabilizes active materials has an exceptional wettability especially at low temperatures SEPARION Benefits for the End User helps to improve battery safety increases rate capability helps to improve calendar and cycle lifetime

10 Honda Ciciv Ima (HEV), Li Battery with SEPARION inside NiMH battery replaced by Lithium battery 120 cells Laminated sheet type Separion inside! 3P40S design (6 Ah, 144 V) Proof of concept for Li batteries in hybrid cars based on SEPARION separators!

11 On Road Experience with Honda Ciciv Ima (HEV) with Li Battery Strom- Strom- und Spannungsverlauf und Spannungsverlauf Li-Ionen-Akku Li-Ionen-Akku (Ausschnitt) :00 16: : : :03 17: : : :06 17: : : :09 18: : : :12 18: : : :15 19:00 Strom [A] / Spannung [V] [V] voltage [V] voltage [V] current [A] current [A] zero line zero line Zeit

12 Summary: Threats and Opportunities Degussa would like to become a reliable supplier for Li battery materials. New jobs will be established in Germany. However, some regulations are a threat for our strategy, e.g. transportation regulations for Lithium Batteries: Transportation regulations are based on old technology New improved materials can improve safety Transport Regulations have to be adapted to current state of the art, new standards and test methods have to be defined. Assistance by TÜV?

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