MAKING CARBON FIBER MORE ACCESSIBLE TO …...Low-cost recycled carbon fiber will aid in reducing...

MAKING CARBON FIBER MORE ACCESSIBLE TO MORE INDUSTRIES

@VartegaCFR

Mobility

Wind Energy

Aerospace Sporting Goods

3D Printing

© 2019 Vartega Inc

Sheet Metal

Raw Material

Parts Scrap

© 2019 Vartega Inc

© 2019 Vartega Inc

Raw Material Prepreg

Parts Scrap

© 2019 Vartega Inc

Large Scrap Rates Manufacturing scrap rates

are > 30% Source: Plastics Today Dec, 2018 /

Composites World, 2016

Opportunity - Carbon Fiber Recycling

It’s Expensive Aerospace grade is $45/lb.

No Substantive Recycling

Only 2% of material is recycled – balance is landfill

Strong Market Growth

CF material market is growing at 11% CAGR

(Source: RECYCLING OF CARBON FIBRE COMPOSITES, 2016 – Turner & Pickering)

© 2019 Vartega Inc

“Recycling composites will eventually be as commonplace as recycling aluminum and titanium," - Kevin Bartelson, Boeing's 777

wing operations leader. Dec, 2018

95% less energy / 50% lower cost

High-efficiency, low-cost post-industrial carbon fiber recycling

Vartega’s Solution

Fiber Prepreg Composite

© 2019 Vartega Inc

Proprietary Technology Four patents pending

Zero waste process

© 2019 Vartega Inc

Quality Assurance: Before & After

© 2019 Vartega Inc

Vartega Process & Product – Adaptability

Vartega Process

Uncured thermoset epoxy

Other uncured Thermosets (vinyl ester, BMI, etc. )

Thermoplastic matrix

Cured composites

Feeding Bulk / Bundle:

Density & Integrity

Chemistry Sizing

Selection & Weight

Format Fiber /

AgglomerateLength &

Distribution Fiber

Properties Fiber type (SM, IM…) & Shape

Resin Byproduct In Production

Future

Factors Major Competitors Vartega

Process Thermal Chemical

Unit Production Cost High Low

Energy Usage High Low

Greenhouse Gas Emissions High Low

Material Integrity & Consistency Varies Consistent Results

Feedstock Changeover Time Days Hours

Byproduct Revenue None Resin Sales

Distributed Manufacturing - Modular Units None - Capital Intensive Low Cost / Scalable

Competitive Analysis

© 2019 Vartega Inc

Commercial Product

© 2019 Vartega Inc

Applications Additive Manufacturing / Compression Molding / Injection Molding

© 2019 Vartega Inc

Today • 104 models specified with OEM CFRP • Average CF cost $ 8 – 10 /lb.

Tomorrow • 72M pounds per year by 2025 • Average CF cost w/ recycling $ 5 – 6 /lb.

Market Impact - Mobility

© 2019 Vartega Inc

Value Chain & Market Strategy

Recycled Chopped CF

(Tier 3) CF Scrap Waste

Unfilled Thermoplastic

(Tier 3)

CF Filled Thermoplastic

(Tier 2)

Thermoplastic Part Producer

(Tier 1)

Final Assembly (OEM)

© 2019 Vartega Inc

6.20 Closing the Loop on Automotive Carbon Fiber Prepreg Manufacturing Scrap

Team: Vartega, Michelman, CSM, UDRI, ORNL, UTK, MSU with Plasan, Ford and BASF as sponsors Technical Area: Material and Process Type: Technical Collaboration – 24 months Budget: $1,0447,560 ($644,260 industry) Status: In-progress

• Challenge: Carbon fiber has found limited use in automotive applications due, in large part, to the high material cost and the labor-intensive nature of typical composite manufacturing processes.

• Approach: Vartega Inc has developed a chemistry-based recycling process for uncured carbon fiber prepreg manufacturing scrap. Recycled carbon fiber can be made available at lower cost than virgin fiber. In addition, the discontinuous form of recycled material is suitable for higher throughput manufacturing processes such as injection molding.

• Impact: Low-cost recycled carbon fiber will aid in reducing overall CFRP cost and embodied energy while substantially increasing composite recyclability and reducing the prepreg scrap waste stream. Low-cost recycled carbon fiber will be utilized in vehicle light weighting applications to improve fuel economy and reduce emissions.

© 2019 Vartega Inc

Post Industrial Scrap Recycling

© 2019 Vartega Inc

BEFORE carbon fiber/resin

prepreg scrap from manufacturing

AFTER resin matrix

removed from carbon fiber

Fiber Consolidation

Recycled carbon fiber optimized for thermoplastic compounding

• Fiber length

• Surface chemistry

• Bundle format

• Feedability

• Interfacial adhesion

© 2019 Vartega Inc

Compounding & Molding

© 2019 Vartega Inc

Recycled carbon fiber nylon fender

• 10 weight % recycled carbon fiber

• 40% is final target

• Excellent surface finish

• Class A target

• High performance

• Significant Weight Reduction

Upcycling Thermoplastics

© 2019 Vartega Inc

No data

Recycled PA6 – Injection Mold

Confidential © 2019 Vartega Inc

PP – Injection Mold

© 2019 Vartega Inc

No data

Extruded Sheet

© 2019 Vartega Inc

Photo credit: UMAINE & CNAM

Compression Mold or Thermoform

Recycled PA6 – Extruded Sheet

© 2019 Vartega Inc

Bio PA11 – Extruded Sheet

No data

© 2019 Vartega Inc

~100 ton per year plant (Colorado) Input

168 tons of prepreg feedstock @ 65% CF

Output 40 pounds per hour x

24 hours per day x 250 days per year

= 109 tons of recycled carbon fiber +

59 tons of recovered resin per year

*Modular design can be expanded to meet growing demand

© 2019 Vartega Inc

Minimizes waste burden and enables closed-loop recycling to reduce costs and improve supply chain management. Recycled carbon fiber has known pedigree and traceability for use in price-sensitive applications.

Hardware-as-a-Service (HaaS) - On-site Recycling

© 2019 Vartega Inc

FACILITY IN MICHIGAN! © 2019 Vartega Inc

Impact Proforma

*Source – Vartega calcs and US EPA Greenhouse Gas Equivalencies Calculator

© 2019 Vartega Inc

Value Proposition for Our Partners

Collaboration results in: • Waste reduction and cost savings • Co-marketing emerging technology • Priority rights for new product development • Rapid deployment of materials solutions • Leveraging world class facilities and equipment

through the AMIDE Alliance

© 2019 Vartega Inc

Thank you! www.vartega.com info@vartega.com

844-827-8342

© 2019 Vartega Inc

Andrew Maxey andrew@vartega.com

844-827-8342

© 2019 Vartega Inc

MAKING CARBON FIBER MORE ACCESSIBLE TO MORE INDUSTRIES

@VartegaCFR

APPENDIX

© 2019 Vartega Inc

© 2019 Vartega Inc

Supply Chain

Recycled PA6 – Injection Mold

© 2019 Vartega Inc

PP – Injection Mold

© 2019 Vartega Inc

No data

Recycled PA6 – Extruded Sheet

© 2019 Vartega Inc

© 2019 Vartega Inc

Bio PA11 – Extruded Sheet