Rapidly growing market •Competitive with other main battery technologies •Growing number of involved players •Large variety of applications •Products available in the largest range of battery power and energy capacities •Further development and deployment strongly driven by a huge automotive market • Specific requirements on battery safety and cell management due to inherent properties of Li-ion chemistries

1. March © 2016
From Technologies to Market
How EV/HEV
drive the battery
technology
development
From Technologies to Market
Dr. Milan ROSINA
Senior Analyst
rosina@yole.fr

2. 2
OUTLINE
• Energy storage
• Battery applications
• EV/HEV as a driving force for other battery applications
• Synergies of EV/HEV and other battery applications
• Opportunities for innovative battery materials, components and technology solutions
• Conclusion
©2016 | www.yole.fr | How EV/HEV drive the battery technology development

3. 3
CLASSIFICATION OF ENERGY STORAGE SYSTEMS
Why to focus
on Li-ion
battery?
Energy Storage
Mechanical
Pumped Hydro
Compressed Air
Flywheel
Chemical
Hydrogen
Electrochemical
Secondary
Battery
Lead-Acid
Redox Flow
NiCd
NiMH
Li-Ion
Electrical
Supercapacitor
Superconducting
Magnetic Coil
Thermal
Sensible Heat
Storage
Latent Heat
Storage
Electrochemical
Heat Storage
• Rapidly growing market
• Competitive with other
main battery technologies
• Growing number of
involved players
• Large variety of
applications
• Products available in the
largest range of battery
power and energy
capacities
• Further development and
deployment strongly
driven by a huge
automotive market
• Specific requirements on
battery safety and cell
management due to
inherent properties of Li-
ion chemistries
• …
©2016 | www.yole.fr | How EV/HEV drive the battery technology development

4. 4
VARIOUS BATTERY SIZES AND APPLICATIONS
The modularity
of the battery
size, power and
energy
capacities
makes them
easy to use in a
large variety of
applications.
Wh
kWh
MWh
EV/HEV, rail, airplane, PV hybrid
inverters, auxiliary energy
supplies, UPS…
Large-size auxiliary power supply,
photovoltaics, wind energy, electricity
grid services…
Consumer
applications…
©2016 | www.yole.fr | How EV/HEV drive the battery technology development

5. 5
BATTERY = KEY FOR MANY APPLICATIONS
Battery is
key for many
applications:
to achieve
lower system
costs or as
technology
and market
enabler.
Renewables:
• Solution for PV and wind intermittency
• Self consumption
EV/HEV:
• Driving range /Vehicle cost
Grid:
• Grid stabilization services
• Alternative solutions to grid extension and reinforcement
• Alternative to building new electricity plants
Building:
• Grid independence
• Energy backup
• Better use of building-associated renewables
• Smart building “center” (Electricity supply-Battery-Usage)
©2016 | www.yole.fr | How EV/HEV drive the battery technology development

6. 6
VEHICLE ELECTRIFICATION LEVELS
Different options to electrify vehicles (1/2)
There are
different types
of hybridization
depending on
the level of CO2
emission
reduction.
SSV + µHEV
Mild HEV
Full HEV
Level of electrification
Plug in HEV
(with EREV)
EV(BEV or FCV)
5 – 10%
10 – 25%
25 - 40%
50 – 100%
100%
CO2reductionbenefitin%
Toyota Prius
Honda Civic
Citroen C2
Mitsubishi Outlander
Nissan Leaf
Cars examples
(not exhaustive list)
Source: Yole Développement
CO2 reduction depending on level of electrification
©2016 | www.yole.fr | How EV/HEV drive the battery technology development

7. 7
VEHICLE ELECTRIFICATION LEVELS
Different options to electrify vehicles (2/2)
PHEV and
BEV have the
largest
batteries and
can be
charged from
the grid.
Functions
SSV +
µHEV
Mild HEV Full HEV
PHEV (with
EREV)
EV (BEV
or FCV)
Start/stop: stop engine
idle when a vehicle slows
down and comes to a stop
X X X X X
Regenerative braking
X X X X
Additional power for a few
seconds (electric motor)
X X X X
Additional power for mid
distance (city traffic)
X X X
Power for long distance
(10 to 40 miles) X X X
Recharge battery on the
grid or with a generator X X
Energy savings 5-10%
(up to 25% in
city traffic)
10- 25% 25 – 50% 50 – 100% 100%
Electric power 3-8 kW 4 - 20 kW 30 - 75 KW 70 – 100 kW 70 – 100 kW
Car example PSA C2 Honda Civic Toyota Prius GMVolt Nissan Leaf
PHEV and BEV:
1. Large battery
2. Can be
charged from
the grid (high
electricity
demand)
3. Can be used
in a “reverse
mode” -V2G,
V2H…)
©2016 | www.yole.fr | How EV/HEV drive the battery technology development

8. 8
BATTERY SIZE INCREASES TO REACH HIGHER DRIVING RANGE
• The car driving
range (mileage) is
increasing with
the growing
battery size and
measures for
improving
efficiency.
• There is a clear
trend towards
larger battery
energy capacity
driven by
decreased battery
price and
customer needs
for higher electric
mode driving
range.
©2016 | www.yole.fr | How EV/HEV drive the battery technology development
Driving range (NEDC) as a function of battery energy capacityDriving range (NEDC) as a function of battery energy capacity
Nissan LEAF
Renault Twizy
Mercedes SLS
AMG Coupé
Toyota RAV4EV
Tesla Model S
BYD E6
Car sharing
and small
city cars
Big and luxury
BEV
Source: Yole Développement’s report: EV/HEV

9. 9
EV/HEV BATTERY BUSINESS DRIVES ALSO OTHER BUSINESSES
Companies
involved in
battery business
for EV/HEV are
looking for
other
applications.
Battery cell
manufacturers
EV/HEV
manufacturers
Residential battery storage
systems
Battery + photovoltaics
Utility-scale battery
electricity storage systems
(BESS)
Battery + wind
Electro-mobility (buses…)
©2016 | www.yole.fr | How EV/HEV drive the battery technology development
V2H,V2G
…
Supplier of
battery pack
components
Battery
integrators /
EV/HEV
manufacturers

10. 10
HOW EV/HEV DEPLOYMENT POSITIVELY IMPACT RENEWABLE ENERGY MARKET
©2016 | www.yole.fr | How EV/HEV drive the battery technology development

11. 11
• Electrified vehicles can be seen as a way to relieve the grid when necessary (smart charging), but also as a mobile energy storage
system:
• Price of investment for energy storage is nonexistent, as the user already paid for his battery inside the vehicle
• Moreover if the system is remunerated, it can be a way for the user to amortize the EV/PHEV invest
• Energy can be shifted to another place as the car moves
• Development of personal renewable energy is also a driver (maximum use of energy production tools)
• There are different types of “V2X systems” (Vehicle to X):
• V2G: Vehicle to Grid => Energy from the vehicle is re-injected on the grid
• V2H: Vehicle to Home =>Vehicle is plugged to the house in order to provide energy
• V2V: Vehicle toVehicle => Energy from one vehicle can be given to another (for instance in case of energy ruptures or isolation)
MORE THAN SMART CHARGING:V2X SYSTEMS
Electrified
vehicles can be
seen also as a
energy storage
system.
©2016 | www.yole.fr | How EV/HEV drive the battery technology development

12. 12
EV/HEV - THE STRONG DEMAND AND STRONG REQUIREMENTS ON BATTERIES
• Vanadium redox Flow Battery
• Iron-Chromium Battery
• Lead Acid
• Lead Advanced
• NaS
• Nickel-Cadmium (NiCd)
• Nickel-Metal Hydride (NiMH)
• Lithium Nickel Cobalt
Aluminum Oxide (LCO)
• Lithium Iron Phosphate (LFP)
• Lithium-Titanate battery
• Lithium Metal Polymer (LMP)
• Lithium-Sulfide
• Li-Air
• …
The focus on
EV/HEV-
compatible
battery
technologies
will bring the
largest variety
of business
opportunities.
Cell chemistry Application
Portable applications
Applications in transport
Stationary applications
EV/HEV battery
technology:
• Strong R&D
• Production scaling
• High performance
• Kg/kWh, kg/kW
• L/kWh, L/kW
• Lifetime
• Reliability
• Safety
©2016 | www.yole.fr | How EV/HEV drive the battery technology development

13. 13
BATTERY CELL:WE HAVE ENTERED A Li-ION BATTERY ERA…
• Li-ion batteries are taking over other batteries.
• And what beyond Li-ion batteries?
• If “beyond Li-ion“ technologies will not come soon, what are other ways to improve the battery
performance, reliability and safety?
• Li-ion
batteries are
increasing
their ESS
market share,
strongly driven
by electric car
industry.
• The
alternatives to
Li-ion
batteries (with
higher
performance)
are already
under
development.
2020201920182017201620152014201320122011
Flywheels, NaS batteries, NiMH batteries,
lead acid batteries, redox flow batteries
Lithium battery era
Lithium battery
alternatives?
.
.
©2016 | www.yole.fr | How EV/HEV drive the battery technology development

14. 14
BATTERY PACK
• Beside energy flow management,
and new battery cell chemistries
development, the efforts for battery
energy storage technology
improvements are focused on the
battery pack components.
• In some applications, such as
battery electric vehicle, the battery
pack represents the highest part of
the system costs.
• Battery pack as key element for:
• Performance
• Safety
Battery pack
is very
complex
system and
represents
often a
significant
part of the
system cost.
©2016 | www.yole.fr | How EV/HEV drive the battery technology development
Example of a vehicle battery pack

15. 15
A LOT CAN BE IMPROVED AT THE BATTERY PACK LEVEL!
• Cost, weight, size
• Power / Energy capacity
• Battery management system
• Protection devices and solutions
• Thermal management
• Even temperature distribution
• To maintain battery in the safe and highest performance
temperature range
• Cooling, heating, thermal insulation
• Overvoltage and under-voltage protection
• Overcurrent protection
• …
• Electrical connections
• High reliability
• Highly automated / fast process compatible
• …
The battery
pack
represents
many
opportunities
for the
suppliers of
innovative
components
and
solutions.
©2016 | www.yole.fr | How EV/HEV drive the battery technology development
Images courtesy: Fraunhofer ILT, Dana, Multi-contact, ETI, AVL…
A lot of business opportunities!

16. 16
CONCLUSION
• Battery is the fastest growing energy storage technology. Amongst other advantages, their size
modularity batteries suitable for many applications.
• The growing EV/HEV market will result in high volume production for battery cells. This will create
opportunities for new applications which will benefit from the decreasing rechargeable battery cell
costs and strong battery R&D efforts.
• There are strong synergies in renewable energy sources, buildings, EV/HEV vehicles and electricity grid.
Those applications are closely interlinked and battery electricity storage may be their key element.
V2X business can provide an additional added value to the battery in EV/HEVs.
• There is a lot what can be improved regarding the battery pack components and assembly. This
represents numerous opportunities for the companies developing innovative materials, components
and technology solutions.
©2016 | www.yole.fr | How EV/HEV drive the battery technology development

17. © 2016
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18. 18
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19. 19
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20. 20
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21. 21
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22. 22
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23. 23
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24. 24
Biography & contact
ABOUT THE AUTHOR
Dr Milan ROSINA
• Dr Milan Rosina is a Senior Analyst atYole Développement for Energy Conversion & Emerging Materials. Before
joiningYole Développement,he worked as a research scientist and a project manager in the fields of photovoltaics,
microelectronics and LED. He has more than 15 years scientific and industrial experience with prominent research
institutions,an equipment maker and a utility company. Amongst his experience are new equipment and processes
development, due diligences, technology and market surveys in in the fields of renewable energies, batteries and
innovative materials and devices.
• Mail: rosina@yole.fr