Soteria Battery Innovation Group

A Tale of Three Innovations“It was the best of times, it was the worst of times, it was the age of wisdom, it was the age of foolishness, … it was the spring of hope, it was the winter of despair…”

Dreamweaver Separators◦ 3rd Generation separators are 2nd most stable component of

battery (Cu is first), improving safety & reducing cost

Soteria Current Collectors◦ Metallized current collectors breakdown under high current

density, improving safety & reducing weight

Soteria Battery Innovation Group ◦ FRAND licensing accompanied by stringent standards

address supply needs for a new battery architecture

Challenge: Lithium Battery Fires are Expensive

Separator Failure: Fire

Separator Failure: Fire Fuse Stops Ignition: No Fire

Separator never melts or shrinks

Metal layers fail like a fuse

1st, 2nd and 3rd Generation Separators

1st generation shrink ~ 130 C

2nd generation shrink ~175 C

3rd generation stable >300 C◦ No unstable polymer component

◦ High temperature materials incorporated in homogenous composite

◦ Often stable to 500 C

Thermo Mechanical Analysis—measures shrinkage as a function of temperature

1st Gen 2nd Gen 3rd Gen

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PP PP/PE Tri Layer Ceramic PE Dreamweaver Gold

Dreamweaver Technology PlatformCombination of microfiber & nanofiber

◦ Gives small pore size with strength

Swelling nanofiber ➔ gelled electrolyte◦ Improves cycle life in pouch cells

High temperature fibers◦ Dramatically improved safety

Formation: SEI on separator◦ SEI on separator reduces pore size after battery

formed.

Supercalendered/high density◦ Allows nonwoven separators with porosity down

to 30%. Smaller pore size & stronger.

Flame Test: 3rd Gen Separator Saturated with Electrolyte

https://youtu.be/j9XWJgTlT1w

WATCH THE VIDEO

Metallized Current CollectorA new current collector, composed of a thin, light weight substrate with metal coated on each side

Enough metal to give great electrical properties under normal operations.

Metal layer is thin enough to “fuse” or disappear with current densities associated with a shorting defect

Cell electrical requirements handled by thickness of metal coating, Manufacturing strength handled by substrate. Both can be engineered to suit

Current Collector Properties

◦ Base film: 10 mm, 13.7 g/m2; available various thickness down to 1.2 mm.

◦ Measured resistance was a little higher than expected/calculated. SEMs look porous.

◦ Soteria Gen 2 prototype target: 6mm base with .5 mm Al, .4mm Cu

10mm Cu Soteria Cu Prototype 15mm Al Soteria Al Prototype

Thickness 10mm 11mm 15mm 11mmMetal Thickness 10mm 0.7 mm per side 15mm 0.5 mm per sideWeight 90 g/m2 26.3 g/m2 43 g/m2 16.4 g/m2

Resistance 1.72 mOhms/sq. 24 mOhms/sq (1 side)

12 mOhm/sq (2 sides)

1.77 mOhms/sq. 52 mOhms/sq (1 side)

26 mOhm/sq (2 sides)Tensile 400 N/mm2 120N/mm2 150 N/mm2 126 N/mm2

Elongation 4% 38% 4% 48%

CopperAluminum

Horizontal CurrentProperty Aluminum Copper

Resistance 200 mOhm 155 mOhm

Max 75F current 1.5 A 1.9 A

Max 90F current 2.5 A 3.3 A

Fuse current 4.5 A 5.0 A

Est safe 18650 current 12 A(~4C)

15 A(~5C)

Est safe pouch current (20 layer, 160 mm)

600 A(~30 C)

750 A(~37 C)

The current limits could be tripled if metal was 1.5 mm per side.

Vertical CurrentProperty Aluminum Copper

0.11 mm fuse current 2.4 A

0.8 mm fuse current 7 A 10 A

Vertical Touch TestProperty Aluminum Copper

Voltage 1.5 V 2.1 V

Current 4.5 A 6.3 A

Time before broken 5 ms 28 ms

Joules generated 4 x 10-6 J 4 x 10-5 J

Once a short is created, the time before it is broken is so short that almost no energy is generated.

Copper Clad Aluminum (CCA)In a Li-ion cell

◦ Cu used for anode because Al at low voltages reacts with Li. Cu does not.

Soteria Cu-clad Al over Cu foil ◦ Al conductor with Cu outer layer

replacement for Cu foil

◦ Lighter, thinner and less costly than solid Cu

◦ Al brings better safety performance to the anode

8 mm Cu foilweight 72 g/m2

3 mm polyester filmweight 4 g/m2

2 layers of 300 nm Al, weight 2 g/m2

2 layers of 50 nm Cu, weight 1 g/m2

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Cu-clad Al Film vs. Cu Foil

Cu Foil Cu-clad Al Film

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Cu-clad Al used in building wiring and coax cables10% - 15% Cu by volumeLighter and less costly than pure copperHigh freq skin effect➔ impedance = pure copper

Samples available late summer 2018

Conventional Material Nail Penetration

Nail allows current to flow between layersV = 4.0 V, I = 50 A

High current density is key source of thermal runaway associated with dendrites and manufacturing defects.

Watch Video: https://youtu.be/4uKyOb0PxaE

Soteria Architecture Material Nail Penetration

Metallized current collector does not allow current to flow when contacted at point contactV = 4.0 V, I = 0 A

Eliminating current at point contacts will eliminate thermal events associated with dendrites and manufacturing defects.

SoteriaTM

Watch Video: https://youtu.be/Bdt2MsWdltE

Soteria-1 Cell BuildPouch cell with stacked electrodes:

◦ 4 double-sided cathodes; ◦ 3 double-sided and 2 single-sided anodes

Rated capacity: 1Ah

Cathode: ◦ BASF NMC523 ◦ 97% active in solids ◦ 22 mg/cm2/side (3.3 mAh/cm2)

Anode ◦ Graphite BTR-918S ◦ 94% active in solids; ◦ 11.8 mg/cm2/side (4.0 mAh/cm2)

Separator: Celgard 2500

Nail Penetration

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Nail Penetration Voltage

Control #1 Soteria (Al Film) Soteria (Cu Film)

Cu film was intermediate—possible a higher power cell would have broken the Cu fuse

Function after damage may be a key parameter for aggressive test standards.

Nail Penetration—Thermal ImagesCONTROL CELL SOTERIA – AL FILM CELL

Cells were tested in cold warehouse area. Temperature rise of 45 F.

Cells were tested in cold warehouse area. Temperature rise? Warm spot not near nail.

Typical Cell Phone Cell – Stack Comparison

Part Length Width Thickness Weight Soteria Thickness Soteria Wt Wt SavingsUnits mm mm microns grams micronsFull Cell 105Copper 595 90 7 3.37 4 0.47 86%Anode 515 85 75 6.89 75 6.89Aluminum 650 90 10 1.58 4 0.33 79%Cathode 570 85 70 9.50 70 9.50Separator 700 95 10 0.93 12 0.67 29%Total 2730 23.21 2655 18.51 20%

• For EVs and energy storage, which typically use thicker metal, the weight savings would be more• Similar savings at the pack level might be available due to increased cell safety and wider operating temperatures

While saving only a few grams (2%) for a cell phone, it will remove ~200 lbs from an EV (3-4%).

Welding/Tabs

Ultrasonic welding of tabs works, connects to both sides of foil, and gives good strength after taping.

Cross section shows metal from tab will push through polymer to contact both sides.

Weld

through

TabFilm

Soteria-2 Cell BuildPouch cells

◦ NMC 523 / Graphite

◦ 3 Ah Stacked pouch cells

◦ Full Architecture

18650 cells◦ NMC 523 / Graphite

◦ 2.4 Ah

◦ All iterations of Soteria current collector

Pouch cells◦ NMC 622 / Graphite:Silicon composite

◦ 3 Ah stacked pouch cells

◦ Full architecture

Results 12/18: Preview of 18650 Nail Pen

Material & Cells Drop In To Normal Production

MATERIAL PRODUCTION

Current Collector◦ Vacuum deposition

◦ Similar to food pkg

Separator

BATTERY PRODUCTION

Coating

Stacking & Winding

Refining Papermaking Calendering

Both materials made on existing robust manufacturing processes adopted from other industries.

Both materials are drop in replacements to existingmaterials in normal lithium ion battery production.

Material Cost Comparison & Effect on Cell Costs

COSTS & EFFECT ON CELL COSTS LITHIUM ION CELL COST STRUCTURE

Separator:◦ Estimate 20-40% cost savings vs incumbent

separators

Current collector◦ Estimate 20-40% cost savings of 7% in “other

materials”◦ Metal alone reduces by >$4/kWh

Total Effect◦ ~30% material cost savings on separator, current

collector◦ ~4% cost savings on cell cost◦ Additional savings at module & pack level

◦ Reduced need for accessory safety materials

20-40% savings on foil, separator

Challenge #2: Market Access Requires Multiple Suppliers

3M NMC

2000 – 04: Patents filed

200X – 06: NMC product launched

March 07: Law suit filed

2007: Settlements and licenses with Panasonic, Matsushita, Sony, Sanyo.

2009+: licenses to ATL, Umicore, L&F, Hunan Reshine, Ecopro, LG Chem, Johnson Matthey

2017: Sold business to Umicore

2017: NMC ~30% of lithium battery market

3M never successful selling powder

CELGARD CERAMIC COATED SEPARATORS

2001: Patent filed

200N – 11: Product launched

2010-15: Law suits with LG Chem, Sumitomo, SK Innovation. Customers affected: Tesla, Apple, LG, others

2013+: Suits result in licenses, and other licenses also occur.

2015: Asahi Kasei purchases Polypore’s battery separator business, including Celgard, for $2.2 B

2017: Ceramic coating 35% of lithium battery market

License to Best Advanced Materials Suppliers & Set Standards

OPEN MARKET APPROACH

To license the Soteria battery technology to the best advanced materials companies

To develop a set of aggressive test standards that highlight the advanced safety performance of the Soteria battery architecture

To get those standards adopted in electronics, electric vehicles, energy storage and the broader lithium ion battery industry

PolyJoule Inc.

NanoMets

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Consortium Growth

Members

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Market Target: 25% Market Penetration in 10 Years (2028)Current Market

◦ ~1.5 B m2 each of separators, current collectors

◦ 20% CAGR

◦ 20 B m2 total in 2028 (10% auto penetration)

25% of market in 10 years◦ 5 B m2/year, ~$5 B of materials

◦ Separators◦ ~30-40,000 T/y of fiber

◦ 2.5 B m2 ~ 25 machines each @ 100 M m2/year, +5/year

◦ Current collectors◦ 17,500 T/year plastic, 12,750 T/year metal

◦ 2.5 B m2 ~ 80 machines each @ 10 M m2/year, +16/year

This is the motivation for supply chain partners to support us through membership fees.

An Open ConsortiumTHE CONSORTIUM IS

Dedicated to improving lithium ion battery safety◦ Any cell that passes the certification can use the

mark, regardless of material

Doing shared R&D, with each company playing it’s natural role

◦ Reducing parallel efforts by sharing the R&D burden

A network for sharing information for companies with common goals

A way to get IP from small, innovative companies to large, stable, licensed manufacturers

THE CONSORTIUM IS NOT

A monopoly◦ Anybody can join as an Adopter/Associate/Licensee

◦ Global, non-exclusive licenses for a broad supply chain

◦ No raw material & equipment purchase restrictions

◦ Ongoing royalty rate only partially offsets material cost savings, resulting in a net cost-down

An IP trap◦ No grant backs of IP required

◦ Member developments belongs to that member

◦ Nobody is locked into using Soteria IP

Types of MembershipsADOPTER MEMBERSHIP

Available to cell mfg, OEMs, test labs, universities

Allows R&D

Receive samples

Attend bi-annual confidential Adopter meeting◦ First is Sept 10th, Novi MI, coincide with Battery

Show

Agree not to violate intellectual property

Fee:

$1,000 annually

ASSOCIATE MEMBERSHIP

Available to anyone

All Adopter Membership rights

Participate on committees

Attend bi-annual confidential Associate and Adopter meetings

◦ First is Sept 10th, Novi MI, coincide with Battery Show

Only membership available for material, equipment, service providers

Fee: ◦ $25,000 if >$100M revenue◦ others $7,500 (including gov’t, schools & nonprofit)

In a cell, royalty is 3% of about 15% of the cell cost, or 0.45%. At $100/kWh, would be $45 on a 100 kWh EV.

Awards: Most Fundable and Innostars

Entrepreneur Magazine Most Fundable Companies➔#1 out of 2500 applicants➔published Entrepreneur Magazine Oct 24

Innostars (by US China Innovation Alliance)➔#1 Advanced Materials

Confidential

Soteria Management Team

• MS EE Michigan Tech• 27 years auto & automotive• Chief engineer at two lithium ion

battery companies• Author of book on electric vehicles

• 3rd startup• PhD Physics Ohio State• 200 patents• $1 billion in product sales from

patents

Thank you!

Technology Member Company ParticipationMaterials Members→Test your materials in these structures, and adapt them (or choose best of existing products) to help licensees improve the eventual performance

Potential Licensees→Work to develop uniquely positioned products leveraging your company strengths to offer a differentiated product within the architecture→When ready, buy license and offer unique and improved product offering

Cell Manufacturers→Test the prototypes and give feedback to help with optimization→When ready, launch new products using materials

Equipment/Process Members→Prove and improve the manufacturability of the materials to optimize performance, uniformity & yield

Test/Development Labs→Help develop aggressive safety standards→Become qualification lab for use of architecture/brand

Soteria goal is for each company to develop a unique product offering within this total architecture

Licenses & Material Purchase within SBIGMaterial Purchases

◦ All member agreements contain a clause that material that is covered by SBIG patents will only be purchased from members who have a license to those patents.

◦ The licensees have no restrictions on who they buy their equipment and raw materials from, or who they subcontract for partial/full manufacture.

Licenses◦ Each covers only current collector or separator.

◦ Global, nonexclusive, non-sublicensable, limited transfer rights, perpetual until last patent expires.

◦ Require membership. Fee disappears once royalties exceed fee.

◦ Economic terms: 5% royalty, dropping to 3% with (total) volume. “Meaningful” up front fee is $600,000 for first license, goes up by 25% for each successive license (for each technology)

In a cell, royalty is 3% of about 15% of the cell cost, or 0.45%. At $100/kWh, would be $45 on a 100 kWh EV.