Superior Lithium Ion Batteries for Energy Storage and E-Mobility

Superior Lithium Ion Batteries for Energy Storage and E-Mobility

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Description: Global Energy Storage Market Growth Forecast: ~0.5GW installed in 2014, Overall market value is expected to reach $114 billion by 2017 and $400 billion by 2030, Market expected to reach 21GW by 2024, 44% annual CAGR- Driven changing utility landscape requiring significantly more energy storage capacity,Development of new generation technologies including flow batteries, Li-ion batteries are expected to dominate short-duration market segments, Demand for batteries for grid applications is underlined by the exponential growth of demand for advanced batteries for grid applications, Revenue is estimated to grow at a CAGR of 63% annually to reach nearly $24.5B in 2024, Addressable market of more than $3.5B by 2023 for Electrovaya, Utility market growth 45% CAGR, Microgrid market growth 35% CAGR, 2020 Market size total ESS ~ 8GW, LD storage market share assumed at ~10% today, Stronger Growth in Utility scale from 2018 onwards, Microgrids are the solution to weak grid infrastructures.

 
Author: Gitanjali Das Gupta (Fellow) | Visits: 770 | Page Views: 1066
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Contents:
19 JULY 2016

The New Electrovaya (EFL:TO)
Superior Lithium Ion Batteries for
Energy Storage and E-Mobility
Gitanjali Das Gupta, COO

EFL (Toronto Stock Exchange - TSX)

1

1

Disclaimer
This presentation contains historical and forward-looking statements. The forward-looking statements involve risks and
uncertainties. Forward looking statements appearing in this presentation represent management’s current estimates and
these may change significantly as new information comes to hand, including including statements that relate to, among
other things, revenue forecasts, technology development progress, plans for shipment using the Company’s next generation
technology, production plans, the Company’s markets, objectives, goals, strategies, intentions, beliefs, expectations and
estimates, using such words as may”, “will”, “could”, “should”, “would”, “likely”, “expect”, “intend”, “estimate”, “anticipate”,
“believe”, “plan”, “objective” and “continue” (or the negative thereof) and words and expressions of similar import.
Certain material factors or assumptions are applied in making forward-looking statements, and actual results may differ
materially from those expressed or implied in such statements. Additional information about material factors that could cause
actual results to differ materially from expectations and about material factors or assumptions applied in making forwardlooking statements may be found in the Company’s most recent annual and interim Management’s Discussion and Analysis
under “Risk and Uncertainties” as well as in other public disclosure documents filed with Canadian securities regulatory
authorities. The information contained in this presentation has been obtained by Electrovaya Inc. from its own records and
from other sources believed to be reliable, however no representation or warranty is made as to its accuracy or
completeness .The Company does not undertake any obligation to update publicly or to revise any of the forward-looking
statements contained in this document, whether as a result of new information, future events or otherwise, except as
required by law.

2

Overview of Electrovaya
Outstanding

~ 85 million shares

Fully Diluted

~ 88 million shares

Insiders Hold

~ 54% of shares

Market Cap

$330 Million @ $3.87/share

Patents

~400

Last 3Q:

Revenue: US$ 22.3-million
EBITA:
US$2.7-million
Net Profit: US$1.2-million

Since May 26th have announced ~US$356-million MSA/MOU/LOI over 3 years,
starting around Q4 CY2016 and Q1 CY2017
Locations: Canada (Headquarters)
Germany (Gigawatthour Mfg Plant)

3

How large is the Lithium Ion Battery Market?

Whatever the market size, it is BIG.
Climate Deal Requires $16.5 Trillion Investment
Energy Storage Market value: $400 billion by 2030

The advanced battery market is expanding dramatically in United
States and around the world -- from $5 billion in 2010 to ~$50
billion in 2020

Energy Storage:

We are “Solar, when the sun does not shine”
We are “Wind, in a calm day”
We are “Gasoline in your auto, truck, bus”
We combine the “Global Utility Distribution Business” with the “oil business for
transportation” plus “mobile power”

4

Strategy Summary:

Breakthroughs & Superiority – Critical Matrices
Critical Matrices for Lithium Ion Batteries:
1.

Safety: Electrovaya’s proprietary Ceramic Separator gives highest safety to a Lithium Ion
battery; ~20,000 electric Smarts with Zero Safety incidents

2.

Nearly Double Cycle Life over competitors: Electrovaya’s cells and batteries show
highest cycle-life; as high as 60 – 100% greater;

3.

Non Toxic Production Process

Implications:


Lowest Cost: lowest holistic $/cycle cost



Large IP: ~400 Patents & know-how; combined experience from Electrovaya, Evonik
Degussa & Daimler



Technology Superiority allows Electrovaya to takeover markets from present market leaders



Other Technical Advantages:




Improved electrode Micro-structure
High energy density
Easy to operate in environmentally regulated places like USA, Europe and Japan

5

Competitive Advantage #1:

Safety, Safety, Safety

Industry-leading safety due to proprietary separator: SEPARION™, 300 patents
SEPARION™ Separator



~300 patents, Previously exclusive use for Daimler products only
Disruptive technology: safety with outstanding temperature stability
Full ceramic material supported by PET non-woven:
SEPARION®

Coated PO

Surface

Polymer
fibres

Ceramic
Particles

PET non-woven support

SEPARION®

Coated PO

Flexible ceramic separator
(SEM cross-section)

Outstanding Temperature Stability
6

Competitive Advantage #2:

Extended Cycle Life: 60-100% higher

Lowest holistic $/cycle. Ideal for many applications that demand longer cycle life
• Extraordinary cycle life
• Unusual cycle life is due
to separator features
• Ideal for applications with
long-life warranties or
per cycle price structures
• Extended cycle life is a
key decision criteria
for many customers

7

Competitive Advantage #3:

Non-Toxic Manufacturing Process

Lower OpEx, Lower CapEx, Green (non-toxic) process. Estimated cost savings up to $50/kWh

 Lowest cost production. DOE lab estimates up to
$50/kWh cost savings
 No use of toxic NMP chemicals. No air emissions
 Easy to operate in environmentally regulated places like
USA, Europe and Japan. Thus, $-billion dollar stranded
plants available
8

Strategy Execution:

Key Executive Team
CEO & Chairman
Dr. Sankar DasGupta

Sankar is a serial entrepreneur and an award-winning
scientist with over 50 US patents. He has led
Electrovaya as a stable publicly traded battery
company for over 15 years and spearheaded the
acquisition of Evonik Litarion. Received his PhD from
Imperial College London.

CTO & GM (Litarion)
Dr. Joerg Reim

Ph.D. University of Muenster1997. post-doctoral,
Pennsylvania State University, In 2006, he joined the
Lithium-Ion Technology group of Degussa AG (now
Evonik Industries AG) working in different positions
in Technical Marketing, Application Technology and
R&D.

Vice President, Business Development
Dr. Rajshekar DasGupta
Raj joined Electrovaya in 2009 after PhD in Material
Science from Univ. of Cambridge. Earlier attended
MIT and Imperial College. Led core technology
development and the development of Electrovaya’s
grid Energy Storage Systems. Leads the business
development activities and a strong growing sales
team in Canada, Germany and China.

Director, Sales & Marketing Europe
Fritz Mueller

Over 25 years experience in sales to majors German
corporations like Bosch, Siemens, Daimler and
EPCOS. Engineer from Tech. Univ. of Berlin

EVP & CFO
Richard Halka

Richard specializes in leading high-tech companies during
periods of rapid growth. Previously, he was EVP & CFO
of Iridium Satellite, then the world’s largest commercial
satellite network operator, where he led its privateequity turnaround. Richard joined Electrovaya to help
guide the company through its planned rapid growth
strategy.

COO & GM (Electrovaya)
Gitanjali DasGupta

Gitanjali has completed change management of
Electrovaya’s operations and has positioned the
company for growth. Previously, Gitanjali led
Electrovaya’s automotive business. She attended
Toronto & Oxford Universities and was a Sloan Fellow
at Stanford University’s Graduate Business school.

Director, Supply Chain Management
Michael Shelton

Joined Electrovaya in 2015 as part of the company’s
growth strategy. Exceptional experience with
developing global supply chains across many supplier
subcategories during new product development and
introduction. Had leadership positions in supply chain
management at Siemens Energy Group, Satcon, RIM &
Omron.

Plus:
Biz Dev Teams located in EU, N. America & China
9

Production Execution:

0.5 GigaWatthour Plant

Originally: a Captive Plant to Daimler  Now: a Globally Available, Proven Production Line

Kamenz,
Germany

• > 2-million cells manufactured with TS16949 certification
• > 20,000 Smart Cars on the road
• Before: Oct. 2015: 1x Customer (Daimler)
Now: Unlocked to multiple OEMs
10

Sales Execution:

Winning Customers with Superior Products
Rapid displacement of competitors as the designed-in supplier to OEMs.

Starting in November 2015, announced availability of cells and modules, some with electronics
and battery management systems which allows OEMs (original equipment mfg) to build
systems easily (“lego-like”):
May 26, 2016

MSA with “industrial OEM, NYSE Fortune 1000”, for an estimated 3 year
revenues of ~US$ 80 million (Cdn $105 million)

June 14, 2016:

MoU with OEM to supply into the electric bus sector, estimated
revenues of about US$ 11 million in 2017 and growing

June 15, 2016:

MoU with a residential energy storage OEM to supply 48V modules,
estimated revenues over 3 years of Euro 199 million (US$ 225 million
or Cdn $280 million)

July 6, 2016:

Multi- year MOU with a Major OEM in the e-mobility industry to supply
battery modules with demand estimated at Euro 37 million (US$ 40million or Cdn $53 million) for 2017 and growing rapidly

Q4, CY2016

ConEdison delivery

11

Sales Execution:

Recent OEM Wins: Estimated Potential
USD Millions

Total Announced Value USD $356 million (CDN $461)
400

$356m

350
300
250

$223m

2016
2017
2018
Total

200
150
100

$80m

50

$41m

$11m

0
EV Industrial

E Bus

Residential e-mobility
Storage

Total

Note: Two agreements only address 2017 demand
12

Summary:

Investment Highlights
Technology
Superiority



Compelling technology superiority



Global OEMs moving quickly to Electrovaya’s products



Acquired global rights to a unique ceramic imbedded separator



Approximately 300 patents support a 10 million square meter plant in Germany



20,000 smart electric vehicles running with zero safety incidents



More than double the industry standard of 4,000 cycles



~9,000 cycles, 1C charge/discharge, 100% depth of discharge



Graphite and NMC electrodes

Scale



0.5 Gigawhatt mature plant in production



Provides opportunities to expand into many different end markets

Markets



Globally large and quickly emerging markets



Blue chip customers



Non toxic production process disrupts the present toxic chemical process (NMP)



Substantially lowers capital expenditures, operating expenses (~55%) and energy costs (~80%)



Makes the billion dollar investments in NMP based plants obsolete

Safety

Cycle Life

Non-Toxic

13

Summary:

Positioned for Global Leadership
Global Technology Leadership in the fastest growing industry
Safety: Highest with Ceramic Separator
Cycle Life: about 60-100% higher than competitors
Global Scale Production Facility: 500 MWh
Markets: Large & Emerging
Blue Chip Customers:

14

APPENDIX
- PRODUCT PORTFOLIO
- MARKET SECTOR FOCUS

15

Global Energy Storage Market Growth Forecast
Annual Installation of Grid-Connected Storage Systems



~0.5GW installed in 2014

25



Overall market value is expected to reach $114 billion by
2017 and $400 billion by 2030(1)

20



Market expected to reach 21GW by 2024

15



44% annual CAGR

GW

21.2 GW

− Driven changing utility landscape requiring significantly more

10

energy storage capacity
− Development of new generation technologies including flow

5

batteries
0.5 GW



Li-ion batteries are expected to dominate short-duration market
segments



Demand for batteries for grid applications is underlined by the
exponential growth of demand for advanced batteries for grid
applications



Revenue is estimated to grow at a CAGR of 63% annually to reach
nearly $24.5B in 2024



Addressable market of more than $3.5B by 2023 for Electrovaya



Utility market growth 45% CAGR



Microgrid market growth 35% CAGR



2020 Market size total ESS ~ 8GW



LD storage market share assumed at ~10% today



Stronger Growth in Utility scale from 2018 onwards



0

Microgrids are the solution to weak grid infrastructures

Expected Revenue - Advanced Batteries
30
$24.5

USD billions

25
20
15
10
5
0

$0.2

(1) Source: Lux Research and The Boston Consulting Group

16

Products:

Electrodes & Separators
LITARION Electrodes
SEPARION Ceramic Separator:
World’s only ceramic separator based
on PET non-woven support
Strong track record- ~ 20,000 vehicles
Launch of a thinner version extends
product family
Separator Addressable Market:
~ $2 Billion

17

Products:

Litacell LC-40
Launched in Q4/2015.

LITACELL: The lithium-ion cell technology LITACELL provides
outstanding cycle life combined with unique safety features
serving as leading-edge solution for the most demanding
applications.
Key Features:
• Superior cycle life & extraordinary safety due to
LITARION® electrodes and SEPARION® ceramic
separator.
• Design and components made in Germany,
manufactured according to ISO:9001 and ISO/TS 16949
• Allows usage by battery integrators

40
35

Capacity / Ah

30
25
20
15
10

Cycling (1C/1C)
Cycling (2C/2C)
Cycling (3C/3C)

5
0
0

2000

4000

6000

8000

10000

Cycle no.

Extraordinary Cycle Life Performance:
9000 cycles at 1C/1C (Ch/DCh), 3000 cycles at 3C/3C (Ch/DCh)
*Data obtained in 40 Ah cells at 100% DOD, 3rd party measurements
18

Products:

Battery Modules & iBMS
The LITACORE1000 is a 1 kWh module with
integrated voltage and temperature sensors in an easy to
handle aluminum case, with laser welded contacts and
features the industry leading Litacell. This module design
allows OEMs, an easy building block for constructing
Lithium ion battery systems.
The EV4823 is a 48V, 2.3 kWh module with an integrated
intelligent battery management system (iBMS) complete
with CANbus communications. This 48V, 2.3kWh module
design allows OEMs to use these modules for myriad
applications in energy storage and emobility sectors.

19

Products:

Battery Systems

Common ‘lego’ building blocks (cells, battery modules, battery management) are leveraged
across multiple verticals
MWh
Smart Grid
Cell Technology
+ Battery management
+Value Add Systems

Smart Cities, MicroGrids

E-Mobility
Industrials

20

Market Focus:

Stationary Energy Storage

Advantage: Extended Cycle Life & Long Life Energy Storage Requirements
Identified markets include:


Energy Storage for Ancillary Services



Energy Storage for Micro Grid
Applications



KWh scale Systems for Distributed
Energy Storage Applications

Energy Storage for Renewable integration



Energy Storage for Local Distribution
Companies



Industrial Applications (Stationary)



MWh Scale Energy Storage Systems for Ancillary
Services, Micro Grid and Renewable Integration
Applications

Residential, Roof-Top & Commercial
Energy Storage

Systems for Heavy Duty applications

Cabinet based ESS racks,
can be used by any
integrator for energy storage
applications. Customers would
leverage the Electrovaya cycle life
advantage.

21

Market Focus:

Motive Applications

Advantage: Safety, Extended Cycle Life & Long Life Energy Storage Requirements
Identified markets include:


Fork Lifts and Materials Handling



Electric Buses



Electric Ferries and Marine



Electric Trucks



Speciality: golf, airport & mining vehicles,
postal delivery vehicles and others

22

Market Focus:

Residential Solar Energy Storage

Advantage: Safety, Cycle Life are the compelling reasons for winning in this sector

Rendering of the Electrovaya ESS with the roof mounted solar panels.

Rendering of the 4kWH Electrovaya ESS

23

Market Focus:

Lift Truck Batteries

Advantage: Safety, Extended Cycle Life & Long Life Energy Storage Requirements
Market needs:


Ultra safe, long cycle life battery, fast charging, 3 shift ops



Lead acid needs high maintenance



3 Lead batteries per truck for 3 shift operations



Large addressable market



Market can be addressed through OEM sales



Market can also be addressed by Direct Sales

24

Market Focus:

Electric Bus & Trucks

Advantage: Safety, Extended Cycle Life & Long Life Energy Storage Requirements
Market Summary:


Demand growing in Europe; India & China: Technology is the driver



Recent IDTechEx Analyst: $32 billion of Lithium Ion battery needed
for e-bus only



City of Paris announced 4,500 all electric bus fleet



Typical electric bus costs ~ $500,000 - $600,000



Typical battery for a bus is ~ $140,000 - $200,000



Key Factors: Safety, Safety , Safety and long cycle life

Demand for large
electric bus lithiumion batteries is
expected to grow to
nearly $30bn by
2026
-“idtechEX”

March 2016

25