Umicore Sa · EURONEXT:UMI
Umicore Sa — Investor Day (May 2012)
40 slides from Umicore Sa's investor day presentation, May 24, 2012
Slide 1: Key developments in Rechargeable Battery Materials
Key developments in Rechargeable Battery Materials Capital Markets Event Seoul, 24 May 2012
Slide 2: What is a Li-ion battery?
What is a Li-ion battery? Anode (= negative) • Graphite/carbon Separator • Ion permeable inert membrane Cathode (= positive) separator • Lithium cobaltite, NMC or LFP as cathode material anode Electrolyte separator • Liquid or gel cathode Charge: Li-ions from cathode to anode Discharge : Li-ions fro
Slide 3: Li-Ion Batteries for electronics
Li-Ion Batteries for electronics Cathode content 10-15 g 50-80 g 15g 10-15 g 50-80 g 100 g 3
Slide 4: Li-Ion Batteries for automotive
Li-Ion Batteries for automotive Cathode content ~50 g HEV PHEV & BEV ~5 kg ~40 kg 4
Slide 5: Li-Ion Batteries for stationary
Li-Ion Batteries for stationary Cathode content a couple of tonnes 5
Slide 6: End user market developments trigger fast material evolution
End user market developments trigger fast material evolution 6
Slide 7: Cathode material - Technology development
Cathode material - Technology development Precursor Product Application Micron-size mixed metal oxides, Nano to micron-size Lithium mixed Li-ion polymer cell for validation of hydroxides, carbonates,… metal oxides, phosphate,.. electric & safety performance for (precursors) (cathode materials) energ
Slide 8: Where is Umicore in the value chain?
Where is Umicore in the value chain ? supply metal product application market Portable electronics Co residues Power tools Co LCO Recycling & intermediates Li- Li-ion rechargeable batteries (P)HEV / EV Ni NMC E-bikes Ni residues Stationary power 8
Slide 9: Umicore's global business presence in rechargeable batteries
Umicore’s global business presence in rechargeable batteries Olen Belgium Cheonan Korea • Co intermediates production • Li-ion cathode production • Group R&D • Research & technology centre Hoboken Belgium • Application lab • Battery recycling Kobe Japan Engis Belgium • Li-ion cathode production • be
Slide 10: Overview of Li-ion cathode material technologies
Overview of Li-ion cathode material technologies Energy Power Safety* Life Cost LCO lithium cobaltite +++ +++ - ++ + LiCoO2 LMO lithium manganese oxide - +++ ++ - ++ LiMnO2 NMC nickel manganese cobalt ++ ++ ++ +++ +++ Li(NixMnyCo1-x-y)O2 LFP lithium iron phosphate + +++ +++ ++ ++ LiFePO4 * Impacts b
Slide 11: Cathode technologies: best fit for portable electronics
Overview of Li-ion cathode material technologies Best fit for portable electronics Energy Power Safety Life Cost LCO lithium cobaltite +++ +++ - ++ + LiCoO2 LMO lithium manganese oxide - +++ ++ - ++ LiMnO2 NMC nickel manganese cobalt ++ ++ ++ +++ +++ Li(NixMnyCo1-x-y)O2 LFP lithium iron phosphate +
Slide 12: Cathode technologies: best fit for HEVs
Overview of Li-ion cathode material technologies Best fit for HEVs Energy Power Safety Life Cost LCO lithium cobaltite +++ +++ - ++ + LiCoO2 LMO lithium manganese oxide - +++ ++ - ++ LiMnO2 NMC nickel manganese cobalt ++ ++ ++ +++ +++ Li(NixMnyCo1-x-y)O2 LFP lithium iron phosphate + +++ +++ ++ ++ Li
Slide 13: Cathode technologies: best fit for PHEVs and BEVs
Overview of Li-ion cathode material technologies Best fit for PHEVs and BEVs Energy Power Safety Life Cost LCO lithium cobaltite +++ +++ - ++ + LiCoO2 LMO lithium manganese oxide - +++ ++ - ++ LiMnO2 NMC nickel manganese cobalt ++ ++ ++ +++ +++ Li(NixMnyCo1-x-y)O2 LFP lithium iron phosphate + +++ ++
Slide 14: Cathode technologies: best choice for energy storage systems
Overview of Li-ion cathode material technologies Best choice for energy storage systems Energy Power Safety Life Cost LCO lithium cobaltite +++ +++ - ++ + LiCoO2 LMO lithium manganese oxide - +++ ++ - ++ LiMnO2 NMC nickel manganese cobalt ++ ++ ++ +++ +++ Li(NixMnyCo1-x-y)O2 LFP lithium iron phospha
Slide 15: Application requirements determine cathode materials used
Application requirements determine cathode materials used 1995 2005 2010 2015 LCO Portable NMC electronics NiMH LMO Automotive NMC LFP Other (NaS, …) Energy Storage LFP Systems NMC (ESS) 15
Slide 16: Umicore well positioned over different materials and applications
Umicore well positioned over different materials and applications, which offers technology and production synergies 1995 2005 2010 2015 LCO Portable NMC electronics NiMH LMO Automotive NMC LFP Other (NaS, …) Energy Storage LFP Systems NMC (ESS) Umicore material and application 16
Slide 17: Umicore's product positioning
Umicore’s product positioning Wide multi-chemistry portfolio of advanced cathode materials more capacity more • LCO compounds more fun more • NMC and NCA compounds • LFP compounds > 50% of Umicore products on the market for less than 3 years Umicore offers all main cathode materials with peace of mi
Slide 18: Umicore's production positioning
Umicore’s production positioning Installed production capacity already on industrial scale today • Track record > 15 years in Li-ion technology • Production synergies from strong position in automotive, portable electronics, stationary power and power tools • 4 production plants, 3 research sites •
Slide 19: Electrification of the powertrain requires batteries of different size and complexity
Electrification of the powertrain requires batteries of different size and complexity ELECTRIFICATION ICE HEV PHEV EV Parallel Range Normal Start-stop Mild Full BEV FCEV system extender Relative size + + ++ ++ +++ ++ Relative complexity + ++ +++ ++ ++ ++ 19
Slide 20: Impact of electrification on CO2 reduction
Impact of electrification on CO2 reduction ELECTRIFICATION ICE HEV PHEV EV Parallel Range Normal Start-stop Mild Full BEV FCEV system extender CO2 Emissions 20
Slide 21: 3 scenarios for the electrification of the car: xEV production
3 scenarios for the electrification of the car xEV production Scenario 1 Scenario 2 Scenario 3 The CO2 limits will be reached The CO2 limits will be reached On top of meeting CO2 limits, through ICE improvement and through xEV introduction there is also a positive TCO for xEV introduction (OEM push
Slide 22: Total Li-ion cathode market per application
3 scenarios for the electrification of the car Total Li-ion cathode market per application Scenario 1 Scenario 2 Scenario 3 The CO2 limits will be reached The CO2 limits will be reached On top of meeting CO2 limits, through ICE improvement and through xEV introduction there is also a positive TCO fo
Slide 23: Total Li-ion cathode market per material
3 scenarios for the electrification of the car Total Li-ion cathode market per material Scenario 1 Scenario 2 Scenario 3 The CO2 limits will be reached The CO2 limits will be reached On top of meeting CO2 limits, through ICE improvement and through xEV introduction there is also a positive TCO for x
Slide 24: Total cathode materials ratios
3 scenarios for the electrification of the car Total cathode materials ratios 13% 22% 7% NMC (non-automotive) NMC (automotive) 2011 NCA LCO 7% LFP LMO [tonnes] 2% 49% 2020 Scenario 3 2020 Scenario 2 [tonnes] 2020 Scenario 1 [tonnes] [tonnes] 14% 14% 13% 18% 11% 22% 19% 21% 23% 29% 23% 18% 27% 3% 3%
Slide 25: How is Umicore responding to market dynamics?
How is Umicore responding to market dynamics? Increasing capacity Developing products within NMC family for cost and performance Include LFP in the product offer 25
Slide 26: Continuous expansion of production capacity and capabilities
Continuous expansion of production capacity and capabilities since start of production Umicore Li-ion cathode sales Recent investments [tonnages] Expansion Greenfield plant of Cheonan plant in Kobe 2000 2005 2010 2011 2012 Umicore figures (estimate for 2012) 26
Slide 27: Developing products within NMC family for cost and performance
Developing products within NMC family for cost and performance Different NMC material generations are being developed • Reducing cost/kg • Increasing kWh/kg ⇒ Reducing cost/kWh To be introduced in the market in the coming years 2011-2012 2017 2019-2020 NMC NMC NMC Generation 1 Generation 2 Generatio
Slide 28: Cost/kWh is strongly influenced by the metals market
Cost/kWh is strongly influenced by the impact from the metals market Metal prices (monthly averages) 2009 - 2011 50 40 30 $/kg 20 Ni LME Co LMB 99.8 LH 10 0 Jan/09 May 09 Sep/09 Jan/10 May/10 Sep/10 Jan/11 May/11 Sep/11 Jan/12 Scenario low Scenario high Scenario medium 28
Slide 29: NMC generation 1: NMC (1:1:1) is the recognized standard
NMC generation 1 NMC (1:1:1) is the recognized standard NMC (1:1:1) fulfils current automotive requirements in terms of performance and safety LiNiO2 Cellcore® MX NMC (1:1:1) LiCoO2 LiMnO2 29
Slide 30: NMC generation 2: OEMs striving for better cost and/or performance
NMC generation 2 OEMs striving for better cost and/or performance Two main development paths are co-existing depending on cell design and global region LiNiO2 Higher Ni content Lower Co content Pushes energy density Reduces metal cost • Increase kWh/kg • Decrease cost/kg • Maintaining cost/kg • Main
Slide 31: NMC generation 3: HLM/HNS could improve cost/kWh by ~40%
NMC generation 3 HLM/HNS could improve cost/kWh by ~40% The main cost/kWh driver with HLM/HNS is a performance technology breakthrough to a higher voltage design LiNiO 2 HLM (High Li, high Mn), HNS (High Ni Spinel) • Higher kWh performance Cellcore® HNS • Improved metal base ⇒ HLM attractive to auto
Slide 32: Automotive cost/kWh perspective: long-term reduction of ~40% with NMC
Automotive cost/kWh perspective Long-term reduction of ~40% is possible with NMC NMC cost roadmap Cost/kWh Generation 1 Generation 2 Generation 3 100% 75% 50% 25% 0% NMC (1:1:1) Low Co High Ni HLM HNS *assumption: all products in mass production volumes 32
Slide 33: Li-ion battery cost reduction potential
Li-ion battery cost reduction potential Cathode material has impact on various levers Cost reduction levers for battery production Cost/ kWh -60% processing Other Materials Material facturing components assembly Cell manu- Raw Increase Cost 2010 specific Best case scenario energy Battery Impact from
Slide 34: Expanding product portfolio with LFP
Expanding product portfolio with LFP 34
Slide 35: Combining strengths
Combining strengths Prayon has historical position in phosphate chemicals • Brings IP • Brings good access to phosphate raw materials Umicore has long track record in rechargeable battery materials • Brings IP • Brings process upscaling knowhow • Brings customer intimacy and marketing capabilities I
Slide 36: Full service model with battery recycling services
Full service model with battery recycling services LCO NMC NCA LFP Application know-how Straightforward Chemistry • Partner remains owner material Material Metals Material science solutions solutions • Metal balance account Metallurgy • One processing fee EOL Recycling Electrodes LIBs Cathode Off-sp
Slide 37: Conclusions
Conclusions Li-ion battery application is growing rapidly thanks to fast product turnover in portable electronics and penetration in new sizeable applications (automotive and energy storage systems) End-user requirements drive cathode material development Umicore has a leading position as cathode ma
Slide 38: Forward-looking statements
Forward-looking statements This presentation contains forward-looking information that involves risks and uncertainties, including statements about Umicore’s plans, objectives, expectations and intentions. Readers are cautioned that forward-looking statements include known and unknown risks and are
Slide 39: The presenter
The presenter Kurt Vandeputte VP Rechargeable Battery Materials Kurt holds a PhD in Chemistry and started his professional career in 1997 with Umicore. After a five year operational assignment at the Umicore Olen plant he joined the Cobalt & Specialty Materials Business Unit in a technology developm
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