What Will Change with the Second Generation of 48V …

1 2017 A123 Systems LLC. All rights reserved 2017 A123 Systems LLC. All rights reserved. Angela Duren 13-September-2017 What Will Change with the Second Generation of 48V Batteries? 2017 A123 Systems LLC. All rights reserved <2013 2014 2015 2016 2017 2018 2019 A123 continues to expand in low voltage Low voltage hybridization is a strategic focus for A123 Systems A123 has secured many low voltage customers globally, some with multiple programs This experience has enabled insights in market trends and technical requirements 12V micro hybrid 48V mild hybrid Start of Production 2 2017 A123 Systems LLC. All rights reserved Low voltage li-ion batteries will reach millions of units Moving to mainstream Driven by global clean air legislation, low voltage hybrids are a key part of most OEM product strategies globally Total annual volume of low voltage batteries produced by A123 expected to be >1M units by 2020 A123 has established low voltage battery assembly plants in China, Czech Republic, and the US to support local customer volumes 12V 48V 3 2017 A123 Systems LLC.

2 All rights reserved 02468101214201720182019202020212022 Millions Hybrid-MicroHybrid-Mild02468101214201720 182019202020212022 Millions JapanUSEuropeChinaMicro & mild hybrid architectures Global volume projections China and Europe will drive the majority of volume in low voltage electrification over the next five years 4 2017 A123 Systems LLC. All rights reserved First Generation mild hybrids supported by belt starter generators will continue to provide high levels of recuperation/ CO2 reduction for mainstream vehicles Next Generation mild hybrids will bridge the battery functions of power supply and vehicle propulsion with more accessory loads and part-time electric driving, further increasing CO2 reduction 5 Continuum of automotive battery function Next Generation 48V systems 12V SLI Plug-ins Hybrids Mild Hybrids 48V Gen2 ACCESSORY POWER SUPPLY VEHICLE PROPULSION Mild Hybrids 48V Gen1 2017 A123 Systems LLC. All rights reserved primary driver is fuel consumption / emissions reduction via recuperation/ regeneration Belt starter generator offers up to 15kW of recuperation to support this initiative 48V accessory loads on some programs 0100200300400500600700800900051015202530 Usable energy (Wh) Peak power (RT 10s kW) First Generation systems Source: FEV Recuperation is the primary driver BSG most common position in mainstream mild hybrids in development/ launching today First Generation 48V battery requirements OEM requirements A123 solutions 6 2017 A123 Systems LLC.

3 All rights reserved CO2 Benefits from Regenerative Braking On-Cycle Benefits Autonomie software simulation Midsize vehicle Belt integrated starter generator Regional certification cycles First Generation (15kW) systems are already approaching the maximum regeneration of energy available on regulatory cycles 7 Does not include highway cycle offset 2017 A123 Systems LLC. All rights reserved Higher power discharge requirements from 1 or 2 e-machines in the drivetrain Higher 48V accessory loads as more features are supported by the 48V powernet Combined power peaks can reach up to 25kW, more energy may be required to accommodate creeping and other engine-off features Add part-time electric driving Next Generation battery requirements Source: FEV 0100200300400500600700800900051015202530 Usable energy (Wh) Peak power (RT 10s kW) OEM requirements A123 solutions 8 2017 A123 Systems LLC. All rights reserved energy (Wh) Peak power (RT 10s kW) A123 32Ah Scalability of 48V battery solutions A123 8Ah A123 6Ah Increasing P/E ratio Battery makers will choose chemistry and electrode designs which best fit each application A123 25Ah A123 12Ah A123 16Ah OEM requirements A123 solutions A123 concepts 9 2017 A123 Systems LLC.

4 All rights reserved Sources of further 48V battery requirement diversity Crash requirements +Variation in vehicle package location and safety strategies Methods of cooling +Higher energy throughput at higher power levels is driving greater heat Generation during battery operation +Conventional liquid cooling will evolve to a refrigerant loop in some cases +Thermo-electric devices are also under consideration in some architectures for larger windows of full operation 48V for engine starting +As battery capacities and power levels increase, cold start requirements are progressively less difficult for the 48V battery +Cold cranking with the 48V battery would permit elimination of the 12V starter motor +This scenario is only valid for solutions including P0 or P1 motor configurations 10 2017 A123 Systems LLC. All rights reserved Fully integrated DC-DC converter with 48V battery +For higher power systems, components can share liquid cooling plumbing +Combine device management systems and CAN connection +Directionally correct on cost, but can OEMs package larger units?

5 48V single battery +One 48V battery replaces both 12V and 48V stand alone batteries +Reduces battery cost and complexity +Requires elimination of the 12V starter (robust 48V starter) +Requires strategy for stepping down voltage to 12V devices (DC-DC converter) +Solution for features where redundant power sources are required? Creativity on future solutions will depend on longevity of 48V mild hybrids/ growth rate of plug-ins 11 Further optimization 5-10 years out Anticipating gen3 48V battery requirements 2017 A123 Systems LLC. All rights reserved Summary 48V hybrids will be relied on heavily to meet ever-increasing clean air regulations +Europe and China are taking the early lead in regional adoption trends +Most early mainstream systems are driven by P0 belt starter generators Next Generation 48V batteries will bridge power supply and propulsion functions, further improving fuel consumption / emissions +Higher power and energy features move to 48V power net, including part-time electric driving +Battery makers will be required to customize solutions due to diversity of power/ energy demand +Battery cooling and other design parameters are adding further diversity to battery requirements Mild hybrid battery systems can be used to further optimize mild hybrid architectures +Reducing/ consolidating components within the 48V architecture is under investigation 12 2017 A123 Systems LLC.

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