renault electric vehicle strategy alliance battery …t. orsini november 2010 strictly confidential...

T. ORSINI November 2010 STRICTLY CONFIDENTIAL

Renault Electric Vehicle Strategy

Alliance Battery Strategy

Renault-CEA Partnership

T. ORSINI November 2010 STRICTLY CONFIDENTIAL 3

Automotive market: evolution of the context


THE RENAULT STRATEGY

Renault aims to market a complete line up of zero emission cars that will be affordable and practical

4 models from mid 2011

800 million euros invested by Renault to develop those cars

At Alliance level : 4 billion euros (vehicles + batteries)


4 MODELS

ELECTRIC VEHICLES AFFORDABLE FOR ALL

A full range of Electric Vehicle to adress all customer segments

ZoeMid-2012

TwizyH2 2011

FluenceSept 2011

KangooSept 2011


12

62

0

128

136

184

0 20 40 60 80 100 120 140 160 180 200

Megane 3gasoline 1.6 16v

CO2 Emission (g/km)

Megane 3diesel 1.5 dCi

Fluence-EEuropean mix

Fluence-EFrench mix

Fluence-E “Coal” electricity

Fluence-E“Wind” electricity

Well to Tank Tank to Wheel

From « Well-to-Wheels Analysis of Future Automotive Fuels and Powertrains In the European Context », JRC-EUCAR-CONCAWE, v3 Nov. 2008 : http://ies.jrc.ec.europa.eu/WTW

Comparaison of some Renault C-segment vehicles on European NEDC driving cycle NEDC

1. EV, the only breakthrough in CO2 emission

Renault Fluence Z.E.


160 KM IS COMPATIBLE WITH MOST DAILY USAGE CONDITIONS

In Europe

2. EVs BECOME PRACTICAL

B-SEGMENT-DAILY TRIP

68 %

32 %

B-SEGMENT- DAILY TRIP

87 %

13 %

87 %Less than 60km per day

13 %More than 60km per day

68 %Sometimes

32 %Never more than 150 km


Deployment of charging infrastructure adapted to customer’s needsQuick Drop-Switch battery in 3 mns

3Standard Charge- At home- At work- In the public domain

1

Quick Charge« Full charge in 30 mn »

2 Smart navigation- Route optimization- Charge spot finder

4

2. EVs BECOME PRACTICAL


3. EV IS ECONOMICAL FOR CUSTOMERS

RENAULT’S OBJECTIVE IS TO SELL EVs AT PRICE OF DIESEL CARS WITH COMPETITIVE RUNNING COSTS FROM 12,000 KM PER YEAR

GOVERNMENTINCENTIVE

=

PURCHASE COST

ICE VEHICLECONSUMPTION

ELECTRICITY

BATTERY RENTAL

Saving

COST OF USE

ICE VEHICLE EV VEHICLE

For the first years, to enable market take off, purchase incentives are needed

Once high volumes are reached, costs go down and incentives are less needed


SO … BATTERY TECHNOLOGY IS KEY !

Wh/kg

Li-IonLi-Metall

NaNiCI2 (Zebra)

BleiNiMH

NiCad

Capacity: 22 kWhNo memory effectLife expectancy: over 10 year

NEW BATTERY TECHNOLOGY ENABLES 160 KM RANGE


AESC(Zama)

France(Flins)

NMUK(Sunderland)

Portugal(Cacia)

France(Maubeuge)

Turquie(Bursa)

Espagne(Valladolid)Cells & Modules

Batteries

Véhicules

INDUSTRIAL STRATEGY


Production Costs

Life expectancyNumber of Cycles

Residual Value « 4R and 2nde Life »

Subsidies

Energy services « Smart charging »« Vehicle to Grid »

« Vehicle to Home »

Financial Cost

ECONOMIC EQUATION OF BATTERY BUSINESS

Other services (Insurance, …)

79 € / monthRenault Battery Leasing

1414

Overview of Li-Ion Battery Technologies and main players:Still a very open field

+ Batteries lithium-ion polymères

ManganèseLiMn2O4

NCALiNiCoAlO2

Phosphatede fer

LiFePO4

NMCLiNiMnCoO2

http://jp.lge.com/index.do

http://www.sanyo.co.jp/index.html

http://www.peve.jp/e/index.html

16

French national defence and security

Health and information

technologies

Non greenhouse gas-emitting

energy

CEA: one of the main research actors in France

• 9 R&D centers

• 15 000 researchers

• Budget : 3,2 billion €

17aboratories

echnologies

Laboratory of Integrated Systems and Technologies

Laboratory of Electronics and Information Technologies

Laboratory of Innovation for new Technologies for Energy and Nanomaterials

CEA/DRT: a unique technology supplier

Micro-nanotechnologies and their integration

in systems

Software-intensive systems

New energy technologies and nanomaterials

Business units

18

2300 DRT employees1200 extra staff (people from industry, postgraduates…)

360 M€ / year

240 M€ external funding / year

Year 2008

2006

Research at CEA/DRT : Key figures

CEA : # 550DRT : # 450

Human resources External funding

Priority Patents (2009)Budget

2008

50,00

100,00

150,00

200,00

250,00

300,00

350,00

400,00

1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 Prévision

Overall funding

External funding

CEA Internalfunding

360 M€

240 M€

120 M€

2008

2008


CEA- Paris

Software Development

CEA- GrenobleNano-carac. Platform

Micro-electronics (LETI)Large equipment like synchrotron

Renault/CEA Lab with Cells and Battery pilot line

CEA-ToursElectrolyte Development

Renault/CEA partnership: involved R&D centers

Coating Calendering Slitting

FillingLaser WeldingWinding


Breakthrough and Improvment: from material to system

Active Powder Electrodes

Battery System(250kg, 150 liters)

ECU(BMS)

SensorsJunction Box

"Service plug"Packaging

Cell

Module

Modules Assembly


Renault/CEA partnership: some activities

New Concepts of Battery Management System

Materials Synthesis for increased performances

Electrodes & Cells prototyping

New Cell Design


Quick ChargeElectric or Quick-drop

Performances Energy & Power

Safety / Reliability « Must »

Life Cycle

CostPRF & Investments

Recycling Cost

Lifecycling & Calendar Ageing

R&D for Battery: to improve all key elements


Tentative Roadmap

Today Short Term Middle Term Long Term

Start ofProduction

Cost Reduction &“Kaizen” Improvement

Major Improvementof current Battery

New chemistry Battery

From current technology to next generation

Focusing on “Cost reduction”

+10% Energy Density

EV SOP

Improvement of key elements: quick charge, durability, energy density …

Cost Reduction: 150 €/Kwh

Li-Air for large autonomy: > 500 kms


Conclusion

The Renault – Nissan Alliance is pursuing an aggressive EV strategy with the objective to make sustainable mobility affordable for all.

This is based on a long term commitment and a strong confidence on battery technology, considering the whole life cycle and the associated business models.

Renault is contributing to the development of the whole «EV and Battery value chain» in France with manufacturing and Research projects.

Renault/CEA partnership is an important instrument to comfort the leadership of the Alliance in the EV business during the next decade.


Thank you

renault electric vehicle strategy alliance battery …t. orsini november 2010 strictly confidential...

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