EV Battery A Perspective from the OEM (Original Equipment Manufacturer)

1. EV BatteryA Perspective from the OEM (Original Equipment Manufacturer) April 11 – 12, 2019 J. T. Guerin Director of Energy Management & Charging Systems Faraday Future Waqar Hashim Vehicle Line Executive and VP Program Management Faraday Future

2. Important Attributes for EV Makers • Initial Cost • Energy density volumetric or mass based - Range • Charge time – Power KW • Battery Life / Wear Out • Useful life

3. Industry relationships • Trends • Bulk of battery production volume shifting from consumer electronics to EVs. • Use of scale to reduce cost per cell is the initial step for EV batteries. • Shift in technology will be the next step.

4. Initial Cost • EV batteries typically cost 30 to 50% of the total material cost of vehicle • Significant initial capital required to set up EV battery manufacturing operations

5. Initial Cost Manufacturing cost reduction primarily driven by automation and scale. There are significant opportunities to reduce battery cost.

6. Energy Density Volumetric or Mass Based - Range Does Moore’s law also apply to battery energy density?.

7. Energy Density Volumetric or Mass Based - Range Li-ion pricing and energy density References: The Freedonia Group, Inc. www.freedoniagroup.comBarry Huret, president of battery consulting company Huret Associates Inc. in Yardley, Pa, USA (www.huret.com)

8. Charge Time – Power KW Range anxiety was one of the greatest barrier to entry on EVs besides cost. Battery Power will continue to increase as consumers demand for greater driving range continues.

9. Charge Time – Power KW Consumers have many choices to charge their EVs

10. How long will the batteries last?  The question that is foremost in most potential electric vehicle purchasers in their decision process to purchase a car.  To alleviate that concern most EV manufacturers offer some type of warranty that guarantees a minimum vehicle range that the vehicle will achieve over course of the time and miles. How to vehicle manufacturers determine what that range can be after 10 years and 150k miles of operation? What about performance after the battery’s life in the vehicle How is it impacted by customer usage? Battery Life / Wear Out

11. Li-Ion Cell Aging Mechanisms Source: Birkl. Degradation Diagnostics for lithium ion cells Journal of Power Sources. Volume 341, 15 February 2017

12. Battery Life Modeling Methods • Multi-Physics Based • Empirical • Cell Calendar Life • vs. Open Circuit Voltage • vs. Temperature • Cell Cycle Life • vs. Temperature • vs. Voltage Operating Window • vs. Discharge Rate • Vs. Charge Rate • vs. Frequency of Fast Charge Source: Smith, K. . Predictive Models of Li-Ion Battery Lifetime IEEE Conf on Reliability Science for Advance Materials and Devices, Sept 2014

13. Different factors (or combination of factors) cause cells to wear differently. No single degradation curve represents any single customer. Degradation (cycle and calendar life) is aggregated against various customer use profiles Example Customer:Southern California50 mile round trip commuteLevel 2 charging at home dailyLevel 3 charging 1x month Degradation Data

14. Useful Life Warranty Policy What happens after 10 years/150k miles?

15. Useful Life Creative secondary and tertiary use streams will create new business opportunities.

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