Broad overview of the issues and opportunities in the development of battery technology within the automotive sector.

1. Automotive Battery Development
Risks & Opportunities
By Phil Biggs
April 2010
© One World Partners, LLC 2010, All Rights Reserved

2. Industry Performance
Domestic Four Assessment
Toyota’s quality issues are deeply affecting its brand.
Honda’s once fashionable design looks bland
compared to Ford, Nissan, and GM.
GM has shed badges, needs to rid itself of
government influence.
Ford has made remarkable progress in design,
electronic content, powertrain, and continues down a
path of leading-edge quality and safety.

3. Industry Trends
Gadget trends include focus on intuitive
application and connectivity, which enable
us to do more inside-the-car activities.
Vehicles of the future will be able to drive
themselves.
In-vehicle ergonomics will continue to be
prominent as Baby Boomers age.
Continued emphasis on design, electronic
content, and powertrain – safety and quality
are “givens.”

4. Battery Segment Overview
Advanced battery technology is the fastest growing technical
field in the automotive space.
Will be the foundation of electric vehicles which defines
vehicle cost, range, performance and design characteristics.
Recent rapid developments behind lithium batteries have
provided promising and dynamic achievements in capacity
and vehicle range.
Future lithium technology and chemistries have the potential
for energy values that allow for lighter and more powerful
system solutions.

5. Market Limitations & Issues
Currently, U.S. capital system is too restricted to sustain
market growth in battery segment.
Uncertainty of regulatory and compliance standards, need
to communicate what standards do exist.
Suppliers and OEMs must be operationally efficient and
strategically nimble as this industry segment grows.
Fire and explosion have presented acute safety concerns
in other segments.
© One World Partners, LLC 2010, All Rights Reserved

6. Raw Materials Issues and
Sustainability Affect Capacity
The U.S. contains only 3% of the world’s lithium reserves.
Chile provides 61% of lithium exports to the U.S., Argentina
sources 36%.
Bolivia has an estimated 50% of global supply, by far the
largest lithium deposits of any country.
Waste batteries can be 90% recycled, which can help
create a circular (sustainable) economy.
© Bloomberg 2010, All Rights Reserved

7. The Need for Infrastructure
Better Place Palo Alto, Calif.-based Better Place designs and builds charging
stations, software and battery-switching stations, with car wash-like tracks where a
vehicle would stop to have the battery switched out.
Tennessee Valley Authority the Tennessee Valley Authority is working
with Nissan and eTec to install public charging stations in Nashville, Knoxville and
Chattanooga, and is installing solar-powered charging stations in a partnership with the
Electric Power Research Institute and Oak Ridge National Laboratory.
Southern California Edison Southern California Edison has been
researching and testing electric vehicles since 1993. Its fleet of electric vehicles has
logged 17 million miles. In 2007, Southern California Edison began working with Ford
to test Ford Escape plug-in hybrids.
Progress Energy Raleigh, N.C.-based Progress has a test fleet of plug-in
hybrid electric vehicles that includes seven Toyota Priuses, two Ford Escapes and one
of the nation's first plug-in electric service trucks.

8. Requirements for Success
Must maintain robust quality systems as industry
converts to electro-powered vehicles.
Commercial proof points are needed.
Product development expertise is critical.
Must sort out warranty responsibilities between
OEM and supplier.
Must craft a workable R&D shared services model.

9. Key Regions of Battery
Production in This Decade
Battery Manufacturing & Development Locations
North America: U.S. Europe: Eastern Europe Asia: China

10. Emerging Battery Suppliers
Michigan-based technology hub…
Johnson Controls-Saft, a joint venture between the Milwaukee-
based auto supplier and French battery maker Saft has lined up Ford, BMW and
Mercedes-Benz as customers, and is already operating a lithium-ion battery plant in
France.
Dow Kokam, through a joint venture last year with investment firm
Townsend Capital, Dow formed Dow Kokam, which plans to break ground this year
on a battery plant in Midland.
Compact Power/LG Chem, South Korea-based LG Chem and its
subsidiary Compact Power are behind the Volt's battery system-powering the
nation's first mass-market extended-range plug-in electric vehicle.
A123 Systems, having struck battery deals with Fisker and Chrysler,
A123 has made Michigan its automotive hub and is building two plants in metro
Detroit.
EnerDel, a subsidiary of New York-based Ener1, has signed on with
Norwegian electric vehicle maker Think and will supply to a pilot electric version of
the Volvo C-30. Focus on European market.

11. Metamorphosis Strategies
Develop deeper relationships with customers
Build greater trust, loyalty
Tap into new revenue streams
Consider new and different business models, look at new
innovation queues, survey your customer needs
Reinvent your delivery channels
Emphasize unique and brand-defining approaches
Innovate with bolder branding, new products
and pricing models
Run cheap, quick tests to be sure you are on the right track
© One World Partners, LLC 2010, All Rights Reserved

12. Differentiating Your Product
Look for product attributes that “brand” your business.
Ask customers where they find value in working with you…
it may be surprising what you hear!
Are there opportunities for brand acceptance beyond your
traditional geography, distribution, or customer base?
Which of your assets might be enhanced by co-branding them?
Are there companies that would readily work with you as a joint
venture partner for that purpose?
Direct revenue ($$$) versus passive income (%) i.e. royalties
© One World Partners, LLC 2010, All Rights Reserved