Opportunities for Nanomaterials in Automotive Applications

OpportunitiesOpportunities forfor NanomaterialsNanomaterials inin AutomotiveAutomotive ApplicationsApplications

Stephen Taylor Senior Consultant

[email protected] http://www.sric-bi.com bringing futures into focus AgendaAgenda

• Introduction to Nanotechnology and Nanomaterials • Automotive industry needs — Applications • Commercial opportunities and value creation • Conclusions

bringing futures into focus Things Natural 10-2 m 1 cm Things Manmade 10 mm

Head of a pin 1,000,000 nanometers = 1-2 mm 10-3 m 1 millimeter (mm) Ant ~ 5 mm MicroElectroMechanica l (MEMS) devices Dust mite Microwave 10 -100 µm wide 10-4 m 0.1 mm Source: 200 µm 100 µm Office of Basic Energy Human hair Fly ash Sciences ~ 60-120 µm ~ 10-20 µm wide 10-5 m 0.01 mm Office of 10 µm Pollen grain Science, U.S. Red blood

Microworld DOE Red blood cells Infrared cells with white cell ~ 2-5 µm 1,000 nanometers = Zone plate x-ray “lens” 10-6 m 1 micrometer (µm) Outer ring spacing ~35 nm Visible

10-7 m 0.1 µm 100 nm

Ultraviolet Self-assembled, Nature-inspired structure 10-8 m 0.01 µm Carbon nanotube Many 10s of nm ~1.3 nm diameter ~10 nm diameter ATP syntheses 10 nm Nanotube electrode Nanoworld

10-9 m 1 nanometer (nm)

Carbon buckyball Atoms of silicon ~1 nm diameter Soft x-raySoft DNA spacing ~tenths of nm ~2-1/2 nm diameter 10-10 m 0.1 nm

© 2007 by SRI Consulting Business Intelligence NanotechnologyNanotechnology andand nanomaterialsnanomaterials currentlycurrently findfind useuse inin myriadmyriad bringing futures into focus applications….applications….

Dockers stain- Daewoo resistant trousers refrigerator (NanoTex containing technology) nano silver

Victor Castano anti- Sharper Image athletic graffiti paint socks containing containing silica silver nanoparticles nanoparticles Lion Corp. antimicrobial Intel Pentium 4 sprays containing ionized processor using nano-silver particle attached 90 nm process to the surface of alumina- technology silica just 15 nanometers in diameter

Samsung OLED displays using GMR disk drive Altair’s nanostructured heads NanoSafe polymer films rechargeable nano titanate battery module Sharper Image plastic storage bags containing silver nanoparticles Zelens fullerene- containing Boots Soltan sunscreens Easton CNT bicycle cosmetic creams containing titanium components dioxide nanoparticles © 2007 by SRI Consulting Business Intelligence …but…but numerousnumerous opportunitiesopportunities existexist bringing futures into focus inin virtuallyvirtually allall industriesindustries

Technology Nanoparticles Nanofilms Composites Tools Devices Sector

• Energy generation Magnetic films MEMS Nanowires, STM, for data switches, and storage transistors, Plastic lithography, Information and storage, lens carbon quantum electronics, flat MBE, AFM, coatings, nanotube Communication computing, panel displays molecular • Aerospace/defense semiconductor devices, displays assemblers s sensors • Electronics Drug delivery, Lab-on-a-chip, image contrast Coated Healthcare and Medical drug discovery, • Medicine and health agents, particles, implants micro-fluidics, Life Sciences medical scalpel blades care microarrays dressings • Food and beverages Fuel additives, Battery Batteries, Thermoelectri Energy and catalysts, technology, supercapacito c • Textiles and hydrogen advanced solar Environment rs, fuel cells clothing storage cells

MEMS sensors, Exterior and • Cosmetics and Advanced coatings LEDs, optical Automotive, Catalysts, interior parts, (e.g. scratch- and switches, personal care electrodes, engine/powertrain Aerospace and corrosion microcontrollers, lubricants components, fuel- displays, Industrial resistant, delivery, tires • Construction antimicrobial) actuators Cosmetics, Specialist • AUTOMOTIVE personal care coatings (e.g. Packaging products, Other for textiles and (food and cosmeceuticals clothes) beverages) , clothes

Source: 3i (Based on a diagram from Evolution Capital)

• Automotive industry is already one of the largest and most demanding users of material technologies (EPs, PMCs, CMCs, MMCs, steel, aluminum) • The industry helps drive advances in material technologies that bring about cost-effective improvements in vehicle performance, safety, and convenience • Increased environmental and safety legislation dictating the greater use of advanced materials in automotive applications

Therefore, increased auto demand for high-efficiency, high-performance materials.

• OEMs and auto part suppliers are already implementing nanotechnology in the production of vehicles

Virtually all aspects of a vehicle could benefit from the use of nanomaterials

Anti-reflective and water-repelling coatings

Scratch- and MEMS corrosion- resistant sensors; coatings fast-charge batteries; engine and Catalytic converters powertrain with Pt nanoparticles components

“carbon black”, nanoclays LEDs

Polymer nanocomposite panels © 2007 by SRI Consulting Business Intelligence bringing futures into focus CurrentCurrent andand futurefuture automotiveautomotive applicationsapplications andand potentialpotential benefitsbenefits ofof nanomaterialsnanomaterials

nanoclay/nylon nanopowders nanoceramics polypropylene nanocomposites improved road and comfort holding nanometals thermoplastic improved safety noise olefin-based pressure flame retardancy and lifetimes dampening nanoparticle-based nanocomposites retention improved clearcoats scratch increased comfort wear resistance resistance better grip temperature tolerance reduced greater stiffness emissions Tires Automotive improved Suspension/braking electronics greater fuel strength systems Fuel delivery/storage and engine less filler efficiency Exterior/interior lower weight Exhaust systems, parts Automotive faster response catalytic times Applications converters, fuel cells, batteries lubricant-free parts Engine/powertrain bearings consolidation components Lubricants reduced friction permeability Paints and coatings electrochromic electrostatic photochromic resistance carbon water and dirt transparency nanotubes corrosion repellant CNT-containing UV resistance resistance antireflective moisture nanocomposites nanoparticles absorption iridescence self repairing self cleaning conductive nanocoatings diamond-like polymers with nanocoatings nanostructured quantum dots carbon nanotubes silica and soot © 2007 by SRI Consulting Business Intelligence OpportunitiesOpportunities andand valuevalue bringing futures into focus creationcreation

• Millions of new vehicles produced each year (1000 new vehicles hit the streets of Beijing, China EACH day) • Millions of current vehicles require new parts and services each year • Project NanoRoadSME estimates that the design and manufacturing of cars, trucks, and buses can be affected by nanotechnology and related technologies up to 60% • Frost & Sullivan predicts that by 2015, nanotechnology will apply to 70% of automotive applications, with revenues in the region of $6.5 billion

But certain constraints may affect uptake: tough time for some automotive OEMs coupled with conservative automotive industry and long product cycles; current nanomaterials price/performance ratios; process-production technologies; material competition, quality, and health and safety issues; and recycling nanomaterials

Nano- Parts and Nanomaterials Vehicles intermediates systems

Tier 1 Suppliers Automakers Nanoparticles Nanocomposites • Nanocor • Basell Polyolefins • ArvinMeritor •BMW • ApNano • BASF • Borg-Warner • DaimlerChrysler • Oxonica • Dow Automotive • Bosch • Dongfeng • Southern Clay Products • GE Advanced Materials • Denso Corp. •Fiat • Sud-Chemie • Hyperion Catalysis • Delphi •Ford • Degussa • Mitsui Chemicals • Federal-Mogul • General Motors • Cabot • Polykemic • Johnson Controls • Honda • Argonide Corp. •PolyOne Corp. • Mitsuba Corp. • Hyundai/Kia • Reade Advanced Materials •Toyota • Siemens VDO • Mitsubishi • PlasmaChem • Ube Industries • Takata • Nissan •Unitika • ThyssenKrupp • Porsche • Valeo •Proton CNTs and Fullerenes • Visteon • PSA •Zyvex Paints/Coatings • BASF • Renault • Bayer MaterialScience •BMW • SAIC • Carbolex Tier 2/3 Suppliers • DaimlerChrysler •Toyota • Carbon Nanotechnologies • Thousands • PPG Industries • Volkswagen • Frontier Carbon • Nanogate Coating Systems • Materials and Electrochemical • Nanophase Technologies Research Corp. • Mitsui Where do opportunities lie? Ceramics and Metal Matrix Composites What type of players are • Honda Motor Co. involved and in which • Nissin Kogyo •NKK regions?

TIRES: Bridgestone; EXTERIOR/INTERIOR PARTS: Bayer; ENGINE/POWERTRAIN: Continental; Cabot; Blackhawk; GM; GE Plastics; SportRack CRF; GE Plastics; Aveka; Degussa; Michelin; InMat Automotive; Toyota; Dow Automotive; Audi; Mitsui Chemicals; Honda; smart GmbH; JFE (NKK and Synkera Technologies; Kawasaki Steel) Ford; Sulzer-Metco

Automotive Applications

FUEL DELIVERY/STORAGE: Toyota; PAINTS/COATINGS: BASF; Ube Industries; Unitika BMW; DaimlerChrysler; Hyperion Catalysis; PPG; Sustech; DuPont; Ecology Coatings’ CRF (NANOMAG project)

EXHAUST SYSTEMS/CATALYTIC CONVERTERS/FUEL LUBRICANTS: ApNano CELLS/BATTERIES: A123 AUTOMOTIVE Materials; PlasmaChem; Systems, Altair; Engelhard; ELECTRONICS: Fujitsu; VW; Hatco SUSPENSION/BRAKING: Continental Oxonica; Nanophase; Infineon; Continental; Teves; Bridgestone; Honda; Lord QinetiQ; Strem Chemicals; Bosch; Siemens; Synkera Corp.; Strem Chemicals; TWR Nanostellar; Catalytic Technologies Solutions; Nanox; Umicore © 2007 by SRI Consulting Business Intelligence WhoWho gainsgains andand whowho loses?loses? bringing futures into focus —2—2 examples:examples: nanocompositesnanocomposites andand nanocoatingsnanocoatings

• Nanocomposite body panels

Value chain participant Value shift as a result of Gain/Loss nanotechnology Consumer Lower fuel consumption Gain More durable parts and better performance Auto Manufacturer Cost savings of nanocomposites Gain over conventional talc-filled composites Easier manufacturing; greater design flexibility; use of lighter engine and suspension Plastic supplier Increase in the amount of plastic Gain sold to OEM per vehicle Nanoclay supplier Increased sales Gain Petroleum company Lower fuel consumption (less gas Loss sold) Conventional talc filler supplier Reduced sales Loss

The environment also gains through reduced emissions and easily recyclable parts Source: Lux Research; SRIC-BI © 2007 by SRI Consulting Business Intelligence bringing futures into focus WhoWho gainsgains andand whowho loses?loses?

• Nanocoatings

Value chain participant Value shift as a result of Gain/Loss nanotechnology Consumer Wash car less often Gain Less likely to repair windshield Improved appearance (possible higher resale value) Consumer Cost of nanocoatings passed on Loss by OEM

Auto Manufacturer Reduction in warranty claims Gain Improved appearance (higher resale value for vehicles bought out of lease Coating manufacturer Increased sales of nanocoatings Gain

Car wash/detailing shop Cars are washed less often Loss

Auto glass repair company Windshields less likely to require Loss repair

Source: Lux Research; SRIC-BI

• Nanotechnology will likely emerge as a key technology in automotive manufacture, especially in the materials replacement arena • Today, nanocomposites, coatings, and paints see use; nanocatalysts, nanodispersions and nanoadditives in lubricants, fuels, and coolants will follow • Players will need to address a number of issues, but the possibility exists for: — Auto OEMs to gain through improved product performance, cost savings and meeting environmental and safety legislation — Tier 1 suppliers to gain through increased demand from auto OEMs for high-performance materials and systems — Greater competition between Tier 2 suppliers as new players join the mix — Consumers to gain through better performing vehicles and cost savings

See our Explorer Nanomaterials web page: http://www.sric-bi.com/Explorer/NM.shtml

For further information contact:

Stephen Taylor Senior Consultant, Business Development SRI Consulting Business Intelligence (SRIC-BI) Tel: +44 (0)20 82561407 Mob: +44 (0)7801 480078 e-mail: [email protected]