DELIVERING QUALITY SINCE 1952.

Lithium Battery Regulations and How They Affect OEM's

06.24.16

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America's Oldest,A History of Innovation

Privately held company, established in 1952.

Estimated 2016: Sales: US$50 Million

117 Employees Worldwide (84 – North America, 30 – Asia, 3 – Europe)

Design and manufacture customized, built-to-print, performance-critical products for all sectors of the electronics industry.

Leading provider of printed circuit boards, custom battery packs, energy efficient fans & motors, cable assemblies and high reliability user interfaces.

Integrated supply chain management solutions to handle the complexity of today’s global marketplace while making sure that every order is being manufactured at the “right” factory.

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Our Products

Battery Packs Flex & Rigid-Flex PCB’s User Interfaces

Fans & Motors Cable Assemblies Printed Circuit Boards

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Global Operations

Significant Investment in People and Facilities across the globe.

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Our Customers - The Top GlobalOEM’s In Growth Industries

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Todays Objectives

Provide an overview of:

– Changes in the 38.3 Testing requirements that will go into effect January 1, 2017

– Changes to the IATA Dangerous Goods Regulations (DGR) that became effective April, 2016

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What is IATA and 38.3 DOT Testing?

The IATA (International Air Transport Association) is a certification regarding handling of dangerous goods to be able to ship (Lithium) by air. It is not a specific test certification for a product but guidelines and training to be able to manage.

Any company that ships lithium batteries alone or as part of their end product must be certified to be able to manage shipping the Lithium products by air transit under their described guidelines. (specific quantities, weight per box, labeling, etc.) – A COMPANY MUST PASS A COURSE TO DO THIS

The UN / DOT 38.3 testing is a specific test for a lithium product that is performed by a third party. This testing is mandatory to ship any lithium air transit. The test that will determine that the product meets an 8 point safety destructive test and can be shipped air transit (above the IATA guidelines) and not be considered as a safety risk.

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Why is This Important?

Several Reasons:

1. Safety of the flying public.

2. Any person, company or entity identified as the Shipper on the shipment waybill is legally responsible to ensure 100% compliance with the IATA Dangerous Goods Regulations. This responsibility persists even if the shipment containing the Lithium Batteries does not actually belong to or was made by the person, company or entity identified on the waybill.

3. Shipment delays and rejections are becoming commonplace, especially with shipments originating from Asia.

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38.3 Testing

8 Tests to Simulate Failure Modes

– T1 – Altitude SimulationThis is low pressure testing that simulates unpressurized airplane space (cargo area) at 15,000 meter altitude.  After storing batteries at 11.6kPa for >6 hours, these criteria shall be met: no mass loss, leaking, venting, disassembly, rupture or fire, and voltage within 10% of pre-test voltage.

– T2 – Thermal TestThis test covers changes in temperature extremes from -40C to +75C.  Batteries are stored for 6 hours at -40C (12 hours for large cells/batteries), then 6 hours at +75C (12 hours for large cells/batteries), for a total of 10 cycles.

– T3 – VibrationThis test simulates vibration during transportation.  Test is a Sine Sweep: 7Hz – 200Hz – 7Hz in 15 Minutes; 12 Sweeps (3 hours).

– T4 – ShockThis test also simulates vibration during transportation.  Test is a Half-Sine pulse: 150G/6ms for small cells/batteries; 50G/11ms for large cells/batteries; 3 pulses per direction; 6 directions.

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38.3 Testing

8 Tests to Simulate Failure Modes (continued)

– T5 – External Short CircuitThis test simulates an external short to the terminals of the cell or battery. At temperature of +55C, apply short circuit (<0.1ohm) across terminals.  Maintain at least an hour after sample temperature returns to +55 +/-2°C.  Pass criteria are: Case temperature does not exceed +170°C and no disassembly, rupture, or fire within 6 hours of test.

– T6 – ImpactThis test is only applicable to primary and secondary cells.  For cylindrical cells >20mm diameter, it simulates impact to case of cell. For cylindrical cells <20mm diameter and all other cell constructions, it simulates crushing of a cell.

– T7 – OverchargeThis test is for secondary or rechargeable batteries only.  It simulates an overcharge condition on a rechargeable battery: 2x the manufacturer’s recommended charge current for 24 hours.  Then battery shall be monitored for 7 days for fire or disassembly.

– T8 – Forced DischargeThis testing simulates a forced discharge condition for primary and secondary cells only.  Same pass criteria as T7.

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Latest Edition

Issued 2015 – Effective Date January 1, 2017

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Where Can I Get It?

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Sixth Revision Changes

1. Clarification of COMPONENT CELL, CELL, and BATTERY/ BATTERY ASSEMBLY/ MODULE.

2. Reduction in the SHOCK test peak G level for large batteries. Base shock pulse on constant energy, rather than constant acceleration.

3. Clarification of Overcharge test applicability.

4. Clarification of Short Circuit test temperature conditions.

5. Added a separate paragraph to the Battery Assembly exemption: was previously 38.3.3.f, now includes 38.3.3.g as a separate paragraph.

6. For >6200 Watt-hour battery assemblies, add requirement to demonstrate that Overcharge, Short Circuit and Over-discharge between batteries within the assembly are addressed.

7. Short circuit test conditions clarified to allow for testing inside or outside of a temperature chamber or oven (i.e. precondition, then test at ambient temperatures).

8. Clarify Overcharge test reasoning.

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Six Revision Summary

Provides more definitions and clarification of the testing parameters and why they were chosen.

Clarifies the difference between battery packs and cells. Gives more guidance on larger packs.

For OEMs:– All new designs should be tested to the Revision 6 parameters.– All yearly re-cert’s should be to the Revision 6 parameters.– More of a paperwork and sample size change as the majority of designs vastly outperform the Revision 5 parameters.

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Shipping Regulations

Effective April 1, 2016, more stringent regulations were issued by the International Air Transport Association (IATA) for the transport of Lithium Batteries that are packed and shipped as loose/bulk (UN3480/PI965).

Due to increasing safety concerns raised by the aviation industry, the IATA regulations governing the shipping of Lithium Batteries have been tightened and airlines consequently have to enforce these regulations more rigorously.

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Major Changes

Lithium ion or lithium polymer cells and batteries packaged alone (i.e., without equipment) may not exceed a state of charge of 30% of their rated design capacity.  (Effective April 1, 2016).

UN 3480, PI 965, Section IA and IB are forbidden for carriage on passenger aircraft. All packages must bear the Cargo Aircraft Only label in addition to the other marks and labels required by the Regulations.

Rigid” Packaging (Effective January 1, 2016).  The updated regulations specify that “strong rigid outer packaging” must be used for batteries that are shipped alone or in or with equipment.

Lithium Ion and Lithium Metal Batteries Packaged Alone (Effective April 1, 2016).  The updated regulations limit the number of packages containing lithium batteries and how many batteries in each package that are not shipped with equipment that may be placed in a shipment.

New Lithium Battery Labeling Requirements & Documentation.  The current lithium battery labeling requirements will be replaced with a new set of standards. Lithium batteries that do not qualify for the exceptions must be shipped as Class 9 dangerous goods.

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New Requirements

New Class 9 Label for Lithium Batteries. Lithium batteries that do not qualify for the exceptions (under Section II of Packing Instructions 965, 966, 967, 968, 969, or 970) must be shipped as Class 9 dangerous goods and meet extensive packaging requirements.

Documentation. The current rule requires that shipments of lithium batteries bearing the lithium battery handling label be accompanied by a document specifying that the package contains lithium batteries, that a flammability hazard exists and special care must be taken, that special procedures are necessary in the event of damage, and a telephone number for additional information. (All shipping companies have different requirements)

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New Requirements

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New Labels

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Labelling/Documentation Summary

All Lithium Batteries except for Section II (Very Small Quantities) must be shipped as Class 9 dangerous goods.

What does this mean for shippers in the US:

Shipping personnel must be IATA certified and Hazardous Materials trained.

When shipping from International Ports, each shipping company has a SEPARATE location where they accept Hazardous Materials.– Add time to shipments– Many limit the # and amount per flight

Documentation must be exact and consistent, should have a procedure that you have your manufacturers follow or approve a copy of theirs.– All documents that are needed to be filled out– Pictures of how the materials are packaged internally

The shipper is 100% legally responsible.

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Changes

Lithium ion or lithium polymer cells and batteries packaged alone (i.e., without equipment) may not exceed a state of charge of 30% of their rated design capacity. (Effective April 1, 2016).

Most Customer Specs had between 50-75% charge upon receipt.

This includes batteries manufactured prior to this date.

Does not apply if the battery is installed or packed with the equipment the battery is intended to power.

Creates new process steps at OEMs.

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30% SOC

Enforcement

Currently in the US, it is done at the location of receipt using equipment at the receiving location.

Next Steps– Government agencies are

ramping up to be able to checkthemselves.

– Shipping companies are beingrequired by some countries tohave the capability by the endof the year.

– Shipping companies areevaluating the possibility ofsampling every shipment.

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Packaging

Rigid” Packaging (Effective January 1, 2016).  The updated regulations specify that “strong rigid outer packaging” must be used for batteries that are shipped alone or in or with equipment.

Except when lithium cells or batteries are contained in equipment, each package, or the completed package when packed with equipment, must be capable of withstanding a 1.2 meter drop test.

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Prototypes

How do I transport prototype lithium cells and batteries that have not been UN Tested?

Prototype or low-production lithium batteries may be transported by cargo aircraft if you do the following (See Special Provision A88):

1. Obtain approval from the competent authority of the origin country prior to transport (Be a certified shipper).

2. Protect the cells and batteries from short circuiting.

3. Individually pack each of the cells or batteries in an inner packaging inside an outer packaging that completely surrounds the cells and batteries. All packaging and cushioning material must be non-conductive and non-combustible.

4. Place the cells and batteries in an outer drum or box made of metal, plastic or plywood that meets Packing Group I performance requirements.

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Prototype’s Continued

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In Summary

Significant investment must be made to manage shipping of Lithium Batteries.

Shipper on the shipment waybill is legally responsible to ensure 100% compliance.

Shipment delays are commonplace, especially in Asia.

This is only an overview, there are many more details to review:

– http://www.iata.org/whatwedo/cargo/dgr/Pages/lithium-batteries.aspx– http://www.iata.org/whatwedo/cargo/dgr/Documents/lithium-battery-

guidance-document-2015-en.pdf– http://www.intertek.com/energy-storage/un-transportation-testing/

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Q&A

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