Umicore Rechargeable Battery Materials June, 2014 Agenda
Introduction to Umicore
Umicore Rechargeable Battery Materials
Li-Ion Battery market trends Introduction to Umicore
• We are a global materials technology & recycling company
• Our mission is to make “materials for a better life”
• The majority of our growth comes from clean technologies:
technologies that are specifically designed to optimize the use of natural resources and to reduce environmental impact
• We are listed on NYSE / Euronext Brussels with a market capitalization of some € 4 billion
3 Umicore, global leader in …
Automotive catalysts for passenger cars
Key materials for rechargeable batteries used in portable electronics and hybrid & electric cars
Germanium substrates and other materials which are used in new photovoltaic technologies
Recycling precious metals from old mobile phones, laptops, electronic scrap and spent catalyst material
4 Umicore’s business approach
• We transform metals into hi- tech materials • We use application know-how Application know-how to create tailor-made solutions in close collaboration with our customers Chemistry material Material • We close the loop and secure Metals Material science solutions solutions supply by recycling production Metallurgy scrap and end-of-life materials • We aim to minimize our environmental impact and be the best employer and Recycling neighbour
5 Key megatrends for Umicore
Resource scarcity More stringent emission control
Renewable energy Electrification of the automobile 6 Umicore in figures
2013
Turnover € 9.8 bn
Revenues € 2.4 bn
REBIT € 304 m
REBITDA € 463 m
ROCE 13.6%
EPS € 1.96 / share
Dividend € 1.00 / share
7 Umicore Group structure
8 Agenda
Introduction to Umicore
Umicore Rechargeable Battery Materials
Li-Ion Battery market trends Umicore Rechargeable Battery Materials Fact Sheet
2014
Market Share 1 out of 5 batteries ever made contains Umicore material
15+ xEV platforms on the market in the next years
Track Record >60.000mT cathode material produced (accumulated)
>15 years in the market
Production 5 production sites (KR, JP, CN, BE)
TS16949, ISO9001, ISO14001
Portfolio Cathode: LCO, NMC, NCA, LFP
All Power/Energy ratios covered
R&D 3 R&D sites, 2 application labs
50% products sold are less than 3 years on the market
10 Umicore Global Li-ion Battery Setup Close to the (end-)customer
Worldwide activities in rechargeable battery materials
Research & Development Customer Teams • • Precursor and Product • Dedicated teams R&D (KR, JP, BE) • Sales & Marketing • Group R&D (BE) • Applied Technology in EU, US, KR, JP, CN, TW
Applied Technology Production
• Battery Lab (KR, JP) • Precursor and Product in KR, CN, JP, BE
11 Umicore’s unique experience
RBM has produced enough cathode materials to:
Provide a smartphone to every Power more than 1Million EV´s person on this planet
12 Umicore’s position in the LIB Value Chain Stable supply is key for our customers
• Strong application focused cathode material producer fully integrated for strategic raw material supply, including recycling
13 Agenda
Introduction to Umicore
Umicore Rechargeable Battery Materials
Li-Ion Battery market trends Li-Ion Battery market trends (1)
• LIB-production quite volatile over the year Portable electronics : device launches create erratic demand pattern Automotive : strong fluctuations but gradually growing Cylindrical cell business seems under stress except for the Tesla-business Polymer >> Prismatic > Cylindrical Structural overcapacity creates unhealthy price erosion at cell makers
• Gap between high-tech segment and mainstream/low end increasing High-tech segment : thin and flex form factor, high capacity, high power Top cell performance = combination of high-tech material solutions Low end is threatened by high technology solutions (4 x 3.2Ah iso 6 x 2.2Ah)
16 Li-Ion Battery market trends (2)
• New and growing LIB-applications are numerous : Mobile dataloggers, gardening tools, DIY-tools, boost power, medical equipment, autonomous workstations, data transmission, 12V- and 48V-car systems, grid frequency regulation, back-up power, peakshaving, e-bikes,… Personal mobile connectivity (smart phones, phablets, tablets,…)
• Declining applications exist as well : PC shipments decline significantly and so does 18650 demand Low feature phone shipments decline
• Automotive : diversification ! From Start-Stop to full Electric Vehicle From 18650, over large CYL and POL all the way to +30Ah Prismatic From LFP, over LMO/NCA all the way to NMC
1716 Specific priorities for different market segments
Electronics Power Tools Automotive ESS
Design cycle < 1yr < 1yr 2-4yr 1-2yr
P/E Low High Low to High High
Cost Medium-High High Medium Low-Medium
Cathode LCO-NMC NMC-LMO NMC-LMO LFP-NMC
• Electronics : Wh/L, safety and low swelling • Power Tools : W/kg, safety, fast charging • Automotive : Wh/L + US$/kWh OR W/kg @ -20°C + US$ • ESS : TCO per cycle, over 15yr horizon
1817 Portable electronics More … in less …
LCO NMC-family
Electrochemical performance (Wh/g) Physical density (g/cc)
Strictly Confidential 19 Automotive Gen.2 towards lower $/kWh Through higher performance or lower cost
Two parallel paths depending on company knowhow and strategy
LiNiO2 Higher Ni content Lower Co content Pushes energy density Reduces metal cost • Increase kWh/kg • Decrease cost/kg • Maintaining cost/kg • Maintaining kWh/kg ⇒ Decreases cost/kWh Cellcore® MX ⇒ Decreases cost/kWh NMC (1:1:1)
LiCoO2 LiMnO2 Cost/kWh NMC (1:1:1) 100% Low Co 75% - 80% High Ni 75% - 80%
20 Understanding ESS specific requirements
4*15 minutes of cycling 1 cycle per day * 250 days per year * 250 days/year = 1 000 cycles per year = 250 cycles per year Frequency regulation, Load Leveling, PV, Windmills Arbitrage 15 min – 1 hour storage 4-8 hours storage
~20 times per year ~20 times per year Discharge frequency Discharge Power quality, Capacity Credit, Primary reserve Energy Back-up 15 min – 1 hour storage 4-8 hours storage Charge -
(Minutes) Storage duration (Hours) 20 Umicore Rechargeable Battery Materials Summary • Umicore Rechargeable Battery Materials serves a fast growing market with a broad product portfolio
• Different market segments call for different product solutions and market segments are in a different stage of market development
Portable Electronics will remain the biggest LIB-application in next years
Use Li-ion in Automotive application is steadily growing and is expected to occupy a significant portion of the total material market towards the end of the decade
ESS application is the newest market segment but has also the potential to grow significantly as a result of increased renewable power generation and decentralized power generation
16 Thank you !