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Electrovaya’s Lithium Ion Green Batteries Leaders in Energy Storage Solutions

Maxime Vidricaire

Business Development Europe

Hanover, April 2015

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EFL (Toronto Stock Exchange - TSX)

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Energy Storage: “Holy Grail” for

Electric Power

$200 M

$10.4 B

2012 2017

$220 billion

by 2021

Rechargeable Batteries will

dominate (98%) the energy

Storage market and Lithium is

the fastest growing segment

Energy Storage Market Grid Storage Market only

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Energy Storage Technologies

Efficiency Comparison

Lithium Ion: Highest >92% %

NaS: moderately high about 80-85 %

Flow batteries: messy, chemical plants

Compressed air: low efficiency

Pumped Hydro: low efficiency, needs terrain

Lead Acid: operational problems

Fly wheel: high self discharge, niche

Hydrogen/Fuel cell: low about 22%

Diesel/Generators: incumbent technology

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Lithium Ion Battery Technology

Superior Performance

Exceptional Energy Density

Excellent Power

Long Cycle Life

High Coulombic Efficiency

Advantages

Industry Snapshot

Problem Areas

High cost of production

High regulatory costs due to

NMP use

Safety concerns

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Manufacturing with toxic chemicals is prohibitively expensive in Europe,

Japan & USA; still unregulated in China and Korea.

All Lithium Ion Battery manufacturers use toxic chemical n-methyl-

pyrrolidone (NMP), suspected of causing birth defects (reproductive

toxicant).

Last 24 months: 3 US based public companies declared Chapter 11 (A123,

Ener1, Valence); about 9 venture funded companies closed;

Conglomerates like Dow Chemical, Sony and Evonic/Daimler are pulling out.

Electrovaya’s unique NMP-free green process has substantially lower capex,

opex, future liabilities and no environmental regulations to overcome.

Complements Green branding: no toxic chemicals in Supply Chain

Manufacturers of Lithium Ion Batteries Dwindling Rapidly Despite Increasing Demand

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Conventional Lithium Ion Manufacturing: toxic NMP

solvent coater, dryer, distillation, air handling

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Conventional Lithium Ion Manufacturing: toxic NMP

solvent coater, dryer, distillation, air handling

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Conventional Lithium Ion Manufacturing: toxic NMP

solvent coater, dryer, distillation, air handling

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Conventional Lithium Ion Manufacturing: toxic NMP

solvent coater, dryer, distillation, air handling

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Conventional Process

Coater Mixer Dryer ($$ electricity)

Calender

Solvent

Recovery

Tower

Distillation

Column

Stacker Cutter

Pouching /

Electrolyte

Fill

Formation

Electrode

Materials

Recycled NMP

NMP

Battery

Cells

NMP

2-7% toxic

emissions

Losses from

insufficient

purity $$$

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Electrovaya Solution

Stacker Cutter Pouching/

Electrolyte

Fill

Formation

Electrode

Materials (Unchanged)

Battery

Cells (Unchanged or Better

Performance)

Mixer SuperPolymer® Coating Line

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Technical Comparison

Criteria SuperPolymer2.0

Process

Conventional

NMP process

Active/In-active material dispersion Good Good

Non-Aqueous Process Yes Yes

Electrode Density Same Same

Performance (rate/cycle-life) Same Same

Coating Thickness Same Same

Coating Variation Same (<2%) Same (<2%)

Solvent Toxicity None Reproductive

Toxicant

Electrode Composition (cathode, anode, binder,

etc)

Same Same

Scale Unlimited Unlimited

Ability to add sensitive additives (eg Li

compensation)

Yes Difficult

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Cost Comparison

Criteria SuperPolymer2.0

Process

Conventional NMP

Process

Capital Cost per line (200MWh/annum/3 shifts)

~$10M $70M-$100M

Operating Cost per Line ($/Wh) ~$0.002 ~$0.03 (15x cost)

Energy Costs Very Low Significant Drying

/Recapture Costs

Maintenance Downtime Negligible Significant

Toxic Handling Liability None Significant

Maintenance Costs Negligible Significant

Marketing Green Process Environmentally

Non-compliant

Implementation time 6-9months 12months +

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First to completely eliminate toxic NMP

Lower CAPEX and OPEX

No long-term regulatory risk

Greenest battery cells in the world

Conventional Lithium Ion Battery Manufacturing

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MW Scale Energy Storage

Transmission Congestion Relief

Ramp Rate Control

Peak Shift

Diesel Generator Replacement

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Weak Feeder Network Solutions

Voltage and Frequency Regulation

Peak Demand & Supply Management

Network Capacity Improvements

Operating for SSE in the UK

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Marine Cost Savings

First Fully Electric Ferry:

Powered by 140kW ESS

from Electrovaya

Fully Electric or Hybrid Generator to Cut Fuel Consumption

Very Limited Space Onboard

Fast Charge Anywhere

Comply with all Regulations

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Portable Power

Plug-and-Play Ultra Light, Zero Maintenance

Medical Carts, Mobile Equipment

Solar PV Energy Storage

Back-Up Power, UPS

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Mission

Reduce climate change as

the Global Leader in

Advanced Energy Storage Systems