During the 9th “International Advanced Battery Power Conference” Klaus Eberhardt, Technology Manager Battery and PV, ATF, presented our focus on cost-effective Li-Ion battery factories. The conference took place from April 10-11, 2018 in Münster/Germany. The expected growth in the battery industry will require numerous new factories around the globe. There is a clear trend that the battery manufacturing follows the automotive manufacturing: Closer to the customer, regulative requirements and safety aspects are the key drivers. Adequate sized battery manufacturing facilities are the prerequisite for achieving the required cost target of 100 $/kWh for the battery cells. In his presentation, Mr. Eberhardt discussed cost reduction potentials for the factory through scaling effects as well as smart building concepts.

1. Lean-Clean-Green-Fast
Advanced Battery Power, Münster/Germany
April 11th, 2018 I Dr. Klaus Eberhardt
Requirements for cost effective Battery Factories

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Agenda
• Introduction
• Market Growth & Cost Targets
• Cost effective Battery Cell Manufacturing Facilities
– Fab Safety Engineering
– Value Engineering
– Optimized Building Concept
– Cost effective Dryroom
• R&D Project „GigaLib“
• Summary

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Engineering & Construction of Technology Facilities
Advanced Technology
Facilities
• Semiconductor #1
• Photovoltaic # 2
• Displays # 2
• Batteries -
Life Sciences &
Chemicals
High Tech
Infrastructure
50% 35% 15%
AMERICAS
1,300
employees
EMEA
2,200
employees
APAC
2,000
employees
Cleanroom Technologies & Controlled Environments
5,500 Employees Worldwide
Our Markets and Regions

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Li-Ion Battery Market
Global Battery demand in GWh/a by sector
Source: Apricum in cooperation with CaimERA, March 2018
160 GWh/a - 200 GWh/a of new capacity within the next 5 years predicted
Appr. 20 large scale Battery Factories required worldwide

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Cost forecast for Battery Cells
Split per format
Source: Fraunhofer Batterien Allianz, 2017
The 100 €/kWh target is challenging

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Li-Ion Cell Factory
Investment Segments
Source: M+W Group estimates, March 2018
Process Integration
Support
Real Real Estate
Investment
Factory
Automatization
Process
Equipment
LI-ION CELL
FACTORY
Investment
Segments
Net Facility
Investment
Investment License
Fee
Net Working Capital
22%
2%
6%
6%
1%
8%
55%

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Future Battery Cell Manufacturing Facility
Lean
Cost
Clean Green
Fast
Client requirements determine the optimal balance

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Smart
Engineering
Industrial
Engineering
Purchasing
M+W Group‘s Added Value
Drive down costs while maintaining highest Safety
1.0
0.5
0.0
Cost effective
Dryroom
Technology
Improvement
Value
Engineering
Fab Safety
Engineering
Optimized
Building
Concept
High
Throughput
Process
Tools
Material
Supply
Chain
Process Equipment &
Technology
Safety
Cost/
kWh (a.u.) Added Value from M+W Group
Benchmarking

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Fab Input Fab Output
Codes / Regulations
Process exhaust
Waste water
1. Environmental Protection
2. Production Reliability
Heat / smoke sensors
Liquids for extinguishing
3. Site protection from
Split between of hazardous, toxic,
flammable and explosive materials
Emergency systems
Property protection
Qualified fire department
2. People / Asset Protection
Earthquakes
Heavy Storms
Flooding
3. Natural Hazards
6
Hazardous materials storage
Fire separation walls
4. Risk assesment 5. Fire detection / Extinguishing 6. Warehouse
Focus on People, Environmental & Asset Protection
Human being shall always have priority
Fab Safety Engineering
Embedded into a holistic safety concept / Hazop analysis

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Value Engineering
• Grid column distance
– 12m x 12m, 6m x 24m…. – depending on equipment layout
• Floor load
– Same floor load for entire building is too expensive – needs to be adapted to
the equipment layout / equipment move in path
• Floor
– Waste water to be pumped. Gravity can be used (if the building is not too large).
In addition this provides flexibility in case last minute of equipment layout changes
• Building structure (beams and/or columns)
– Wood / steel / concrete: depends on local availability, cost and schedule (pre cast)
• Ceiling load
– 25 kg/m² + pipe racks for heavy ducts, needs coordination with space management
– Crane (if required) to be connected to the columns or sitting on the floor
Design topics for the Building

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Value Engineering
• TUM (Tool Utility Matrix)
– Peak / average consumption
– Utilization factors
• Equipment layout
– Functional layout
– Technology upgrades
• Logistic concept
– Material flow / warehouse sizing
– Personal flow
• IOT / Industry 4.0
– Automation
– Remote access for control & troubleshooting
– Quality control
Industrial / Equipment Engineering

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Optimized Building Concept
Scaling effects for Building and Facilities
0
0.2
0.4
0.6
0.8
1
1.2
SpecificCostperArea
10,000 m2 50,000 m2 200,000m2
40 % Cost reduction

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Optimized Building Concept
Cots reduction potentials
• Cost efficient Factories
- Standardized grid column distance
- Modular Design and Construction
• Significant savings for Building area up to 50,000m² – 60,000m² Building area
- Ratio between manufacturing area (MA) and total building area (BA) decreases
- Cost for Facility systems does not increase linearly with capacity increase
• Constant CapEx/area above appr. 60,000m²: Building is getting very large. Higher costs for fire protection, for emergency stairwell
and escape tunnel
- Duct diameters for utilities (HVAC, Exhaust…) are getting too big: Higher material costs and stronger pumps /
ventilators are necessary due to pressure loss
- Application for Environmental permit is getting more complex due to high volume of chemicals to be stored
• Saving potentials with larger process area due to de-bottlenecking of process equipment. Automation strategy gets more important
50,000m² - 60,000m² building footprint translates to 6-8 GWh/a capacity

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Cost effective Dryroom
• Dryroom / Cleanroom
– Just clean enough approach
– Innovative concepts

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Giga-LIB* Joint Research Project
High Volume Battery Cell Factory - Initial Assumptions
Development of a
prototype 4 GWh / year
Battery Cell Factory
For the production of
25 Mill. Cells / year for
the automotive industry
R&D consortium
supported by the
German Government
Focus on Resource Efficiency
Material – Energy – Environment – Personnel – Investment – Time
Battery Manufacturer
Facilities, Engineering and Construction
Equipment Suppliers
R&D Institute
* R&D project funded by
the German Government (BMBF)

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Giga-LIB* Factory Layout
3D View of AUTODESK Revit BIM Model
M+W Factory Planning / Industrial Engineering M+W Dryroom/ Cleanroom Expertise M+W Factory Integration
*R&D project funded by the German Government (BMBF)

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Smart Size Battery Factory
Capacity: 6-8 GWh/a

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Summary
M+W Group – Your Established Global Partner
Costs ≤ 100 €/kWh are
key for future growth:
20+ new Factories
Integrated Safety
concepts are
mandatory
Optimized Factories with
6-8 GWh/a and ≈ 50,000m²
total area
Smart Design as a pre-
requisite for Cost
effective Factories

19. Thank you
Contact:
Dr. Klaus Eberhardt, Technology Manager
klaus.eberhardt@mwgroup.net
M+W Group GmbH
Löwentorbogen 9b
70376 Stuttgart
Germany