Benchmark Megafactory Assessment exceeds 1 TWh by 2028

1 | BENCHMARK MINERAL INTELLIGENCE | LITHIUM ION BATTERY MEGAFACTORY ASSESSMENT SEPTEMBER 2018 REVIEW
Benchmark Megafactory
Assessment exceeds 1 TWh by 2028
China capacity additions push tracker through 1 TWh
barrier threshold
n Benchmark’s Lithium ion Battery MegafactoryTracker moves to 1102.5GWh
by 2028
n BYD’s aggressive expansion plans continue via JV with Changan
Automobile as companies announce plans for 20 GWh plant in
Chongqing, China
n New market entrant AnhuiTianeng New EnergyTechnology plans 10GWh
plant in Maashan, China
n Qingdao Guoxuan open 2 GWh LFP plant in Qingdao, China, focussed on
cylindrical cells, most likely to be used exclusively in BAIC EVs
n Geely look to build their own battery business with megafactory in
Jingzhou, Hubei province. Benchmark estimates plant capacity at 6GWh by
2023
n Farasis Energy begins construction on a new 20 GWh plant in Zhenjiang
China as well as completing $1bn in capital raise to build a European
megafactory
Author
Caspar Rawles
Analyst - Cobalt, Cathode & Cells
Office: +44 (0)20 3290 0783
crawles@benchmarkminerals.com
Managing Director
Simon Moores
Benchmark Mineral Intelligence
www.benchmarkminerals.com
info@benchmarkminerals.com
Contents:
Megafactory Tracker.......................2
Megafactory Update......................3
Megafactory Stats.........................6
Impact on Raw Materials..............7
Company Data...............................8
Demand: Indicators & Indices.......9
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TERMINOLOGY
Lithium ion: Predominantly refers to rechargeable batteries with cathode chemistries of NCM and NCA but can also refer to LFP, LCO LMO, LMNO and LTO.
The chemistry will be stipulated.
Megafactory: Lithium-ion battery cell production facility/plant/factory with a capacity of greater than 1 GWh per year.
Capacity: The total amount of battery cells in GWh one plant can produce. Does not equal production/forecasted production or demand/forecasted demand
GWh: Gigawatt hours, equal to 1,000 MWh/Megawatt hours - the standard way to measure energy capacity
NCA: Lithium ion battery cathode containing nickel, cobalt and aluminium
NCM: Lithium ion battery cathode containing nickel, cobalt and manganese.Typically in ratios of 111, 523, 622 or 811 but these can vary. Does not equal NMC
LFP: Lithium ion battery cathode containing lithium, iron, phosphate
LCO: Lithium ion battery cathode containing lithium cobalt oxide
Prismatic cell: Lithium ion battery cell typically encased in aluminium and hard plastic
Pouch cell: Lithium ion battery cell typically encased in a soft aluminium pouch.
Cylindrical cell: Lithium ion battery cell encased in a tubular cylinder typically made of aluminium. Size formats vary but for the EV industry 18650 and 2170
are standard formats
Cobalt chemical: This refers to any downstream refined cobalt product that is in a chemical form (non-metallic)
DRC: Democratic Republic of the Congo
BENCHMARK MINERAL INTELLIGENCE
LITHIUM ION BATTERY
MEGAFACTORY ASSESSMENT
September 2018

Benchmark’s Lithium-ion Battery MegafactoryTracker
BENCHMARK | LITHIUM ION BATTERY
SEPTEMBER 2018
KEY
0 10 20 30 40
GWh capacity
50 60 70 80 10090
GWh capacity
0 10 20 30 40 50 60 70 80 10090
*Data accurate up to September 30, 2018 Source: Benchmark Mineral Intelligence
TOTAL CAPACITY
PIPELINE BY 2028: 1102.5 GWh
n LITHIUM ION BATTERY CELL CAPACITY ESTIMATES BY 2017, 2023 & 2028
COMPANY, PLANT CITY, COUNTRY
2017 2023 2028
Other
EuropeUSChinaAsia(excl.China)
LG CHEM, OCHANG, KOREA
SAMSUNG, KOREA
PANASONIC, HIMEJI, JAPAN
PANASONIC, SUMINOE, JAPAN
PANASONIC, KASAI, JAPAN
PANASONIC, SUMOTO, JAPAN
SKI, CHUNGCHEONG, KOREA
AESC, ZAMA, JAPAN
LEJ, SHIGA, JAPAN
TESLA, GIGAFACTORY 3, CHINA
LG CHEM, NANJING 1, CHINA
LG CHEM, NANJING 2, CHINA
BYD, SHENZHEN, CHINA
BYD, QINGHAI, CHINA
BYD, HUIZHOU, CHINA
BYD/CHANGAN JV, CHONGQING, CHINA
SAMSUNG, XIAN, CHINA
PANASONIC, DALIAN, CHINA
LISHEN, TIANJIN, CHINA
CATL, NINGDE, CHINA
CALB, LUOYANG, CHINA
SKI, CHANGZHOU, CHINA
DYNAVOLT, FUJINA CHINA
GREAT WALL, TBA, CHINA
AESC, JIAGSU, CHINA
GUANGZHOU GREAT POWER ENERGY &TECH’, GUANGZHOU, CHINA
YOULION, SUZHOU, CHINA
GXGK, HEFEI, CHINA
QINGDAO GUOXUAN, QINGDAO, CHINA
BAK, SHENZHEN, CHINA
EVE ENERGY, HUIZHOU, CHINA
FUNENG TECHNOLOGY, GANZHOU, CHINA
TIANENG, MAANSHAN, CHINA
TIANNENG, ZHEJIANG, CHINA
GEELY, JINGZHOU, CHINA
FARASIS, ZHANJIANG, CHINA
LG CHEM, WROCLAW, POLAND
SAMSUNG, GOED, HUNGARY
CATL, ERFURT, GERMANY
SKI, KOMÁROM, HUNGARY
NORTHVOLT, SKELLEFTEÅ, SWEDEN
TERRAE, TBA, GERMANY
AESC, SUNDERLAND, UK
GSR CAPITAL, TROLLHÄTTAN, SWEDEN
FARASIS, TBA, EUROPE
TESLA, GIGAFACTORY 1, US
LG CHEM, MICHIGAN, US
AESC, TENNESSEE, US
BEI, ENDICOTT, US
BEI, TOWNSVILLE, AUSTRALIA

SEPTEMBER 2018
Capacity Update:
Benchmark’s Lithium Ion Battery Megafactory Assessment reached 1102.5 GWh
capacity by 2028 in the September, increasing by 10.4% on August 2018.
BYD continues to make aggressive expansions in cell capacity build out.The company’s
newest plant differs from previous announcements as it will be built as part of a joint
venture with Chinese automaker Changan Automobile.
The plant will be located in Chongqing, China with production brought on in 5-6
Gwh phases and reach 15GWh by 2023, rising to 20 GWh by 2028.
The plant will focus on NCM cathode production, most likely targeting pouch format
cells for the Chinese market. Changan is one of four major Chinese auto manufacturers
and sells around 3 million vehicles per year. The company has previously committed
to halting production of traditional ICE vehicles by 2025 to produce only PHEV and
BEV vehicles.
The investment for the plant is reported to be $1.4bn although the exact split of
ownership and investment remains unclear. As part of the announcement the companies
outlined plans to work together closely to develop autonomous driving systems for their
respective models.
It is unclear if this plant is included as part of BYD’s announced plans to increase
installed capacity to 60 GWh by 2020 due to the JV with Changan. The new plant
increases BYD’s Megafactory count to 4 - the most of any company within China.
A new entrant to the megafactory market this month was AnhuiTianeng New Energy
Technology set up as a subsidiary of Nanjing Haiyi XingnengTechnology Co. Ltd with the
specific goal of developing lithium ion batteries.
The plant will be located in Maanshan, Anhui Province in Eastern China.
Benchmark estimates that the plant will have an installed capacity of 6 GWh by 2023.
As a new entrant to the market it is unclear which battery cathode technology and
The timing of announcements can tell you a lot about the state of the
industry.This graph shows how over previous years lithium ion battery cell
capacity plans have been increasing globally.Typically plants are announced
3-5 years before becoming operational.The amount of planned capacity
together with the number of plants have been dramatically increasing since
the first Megafactory -Tesla’s Gigafactory - was launched in 2014.
Number of announced Megafactories
(capacity by 2023)
Megafactory Review
GWh pipeline capacity
announced in that year
Total GWh pipeline
capacity
Year 2014
39GWh
70GWh
219GWh
472GWh
658GWh
+39GWh
Number of
Megafactories
2
2015
+31GWh
6
2016
+149GWh
14
2017
+253GWh
23
2018
+186GWh
4
Source: Benchmark Mineral Intelligence
BYD, CHONGQING, CHINA
n Plant to reach 15GWh capacity by
2023
n Expected to produce pouch and
prismatic cells
n NCM 523 and 622 dominant cathode,
811 post-2021
ANHUITIANENG NEW ENERGY
TECHNOLOGY, MAANSHAN, CHINA
n 6GWh capacity by 2023
n Pouch cell format for Chinese market
811 post-2021
u

SEPTEMBER 2018
cell format the company will favour but Benchmark expects that the company will
initially produce cells with NCM 622 cathode at the plant, moving towards 811 once the
technology is proven at a commercial level.
The company plans to invest RMB 5billion ($730m) to build the plant in phases,
with phase 1 totalling 4 GWh of capacity, rising to 10 GWh upon completion,
although the timing for the start of production remains unclear.
Qingdao Guoxuan Battery Co. Ltd. a subsidiary of Guoxuan HighTech Power Energy Co.
Ltd. has been developing a battery plant for LFP cells, located in Qingdao, Shangdong
Province, China.The plant is strategically located near to a BAIC EV production plant.
Initial capacity will be 2 GWh at a cost of $145m, and began production in early September
2018. The plant is focussed on LFP cylindrical cells which will likely be exclusively
supplied to BAIC.
Due to the recent subsidy policy changes in China which focus on higher energy density
cathode types (primarily NCM and NCA) Benchmark expects growth in the capacity
of this plant to be limited. The company will need to focus on building NCM capacity
elsewhere to access the most generous subsidies.
One of China’s leading EV automakers Geely will develop a battery plant in Jingzhou,
Hubei Province in a push towards the company’s Blue Geely initiative set out in 2015,
which targets 90% of sales to be NEV’s by 2020.
Whilst Geely have not yet officially announced the capacity, based on NEV production
data and the company’s targets Benchmark estimates that the plant will have an
installed capacity of 6 GWh by 2023.
Benchmark expects the plant to follow the market trend and produce cells using NCM
high nickel cathode for high energy density allowing Geely to access the most generous
subsides.The cell format will likely be largely pouch but this is still to be determined.
Geely adds to the list of Chinese automakers that have invested to build their own
lithium ion battery business giving them greater control of the value chain and the option
to expand their battery business to sell to other EV manufacturers, a similar model to
BYD.
Farasis Energy announced their new cell production base in Zhenjiang, China in
July 2018. Capacity for the plant is likely to be introduced in 4-6 GWh stages, with the
first due to be commissioned in July 2019, the plant is planned to reach 20 GWh when
construction is finished.
Farasis will produce prismatic, pouch and 18650 format cylindrical cells at the plant, all
using NCM cathode technology for EV applications as well as energy storage.
Farasis Energy announced their intentions for a European battery megafactory.While the
location is yet to be announced the company completed a round of funding in excess
of $1bn to pay for the European expansion. The company has already launched its
European Manufacturing Centre Project, which included opening an office in Stuttgart,
Germany.
Benchmark estimates that the plant will have 4 GWh of capacity by 2023, although
the project is still at a very early stage and this is subject to change. The company
claims production will commence in 2021 but as the location is yet to be finalised
this is a highly aggressive timeline compared with other similar facilities.
Benchmark expects this launch to be delayed until 2022.
This marks the second official a nnouncement f rom a C hinese c ell m anufacturer t o
build capacity in Europe, CATL being the first. Whilst the company has set up a base
in Stuttgart Benchmark expects the plant may well be located outside of Germany as
Farasis may wish to target eastern Europe as the location due to the low production cost.
Korean cell manufacturer SK Innovation finally broke ground on the company’s first
Megafactory Update continued
QINGDAO GUOXUAN, QINGDAO,
CHINA
n 4 GWh capacity by 2023
n Focussing on cylindrical LFP cells for
Chinese market
n Developing higher energy density LFP
technology
GEELY AUTO, JINGZHOU, CHINA
n Benchmark estimates capacity will
reach 6GWh by 2023
n Pouch and prismatic formats for the
Chinese market
811 post-2021
FARASIS ENERGY, ZHENJIANG, CHINA
n Plant will reach 20GWh capacity by
2023
n Company will produce prismatic,
pouch and 18650 format cells
n NCM 523 and 622 cathodes, 811 post
2021
FARASIS ENERGY,TBA, EUROPE
n No official capacity figure released;
Benchmark estimates 4GWh by 2023
n The plant will likely produce both
prismatic and pouch cells for
European market
n But the time of first production the
facility will focus solely on NCM 611
and 811 cathode types
u

SEPTEMBER 2018
Chinese plant, located just outside of Shanghai in Changzhou, China.
The plant is expected to be in production by late 2019 with an initial capacity 7.5 GWh,
this would mean SK Innovation meet their target of 20 GWh of capacity by 2020.
SK Innovation’s Changzhou plant will likely focus on pouch cells for the Chinese market.
The plant is part of a JV with state run Chinese automaker BAIC and Beijing Electronics
Holdings, with each partner reportedly having an equal stake in the business.
SK Innovation invested $145m in the JV although the estimated construction cost of the
plant remains unclear.The Changzhou facility has been on the drawing board for some
time and has only now made it on to the Benchmark Lithium Ion Battery Megafactory
tracker as construction has started.
The plant was put on hold due the concerns over Chinese subsidy requirements meaning
that only NEV’s with Chinese made cells could qualify.
With the rules around the subsidy policies relaxing and an expectation that they will cease
in the early 2020’s SKI has pushed ahead with the plant to enable it to take advantage of
lower production costs in China and better access to domestic markets.
Megafactory Update continued
SK INNOVATION, CHANGZHOU, CHINA
n Capacity to reach 7.5GWh by 2023
n Plant will focus on pouch cells for EV
market
n NCM 523 and 622 cathodes, 811 post
2021

Megafactory Capacity by Country
World Lithium Ion Megafactory Capacity 2010-2028
SEPTEMBER 2018
2017 2023 2028
Total: 144.8 GWh Total: 1102.5 GWh
Australia: 0.5%
US:13.4%US: 5.6%
UK: 0.7%UK: 0.6%
China: 57.2%China: 63.0%China: 62.9%
Germany: 5.4%Germany: 3.1%
TBA: 0.6% TBA: 0.6%
Hungary: 2.7%Hungary: 2.7%
Japan: 5.5%Japan: 6.0%Japan: 13.0%
Sweden: 4.5%
Poland: 4.5%
Poland: 3.8%
S Korea: 4.6%S Korea: 6.2% US:10.3%
Poland: 3.4%
Sweden: 4.0%
Total: 658.0 GWh
S Korea: 13.8%
Megafactory Capacity by Region
2017 2023 2028
Total: 144.8 GWh Total: 658.0 GWh Total: 1102.5 GWh
Asia: 26.8% Asia: 12.2% Asia: 10.1%China: 62.9% China: 63.0% China: 57.2%N America: 5.5% N America: 10.3% N America: 13.4%
Europe: 4.9% Europe: 14.5% Europe: 18.8% Other: 0.5%
n LITHIUM-ION BATTERY MEGAFACTORYTRACKER CONTINUED...
1,200
900
800
700
600
500
400
300
GWh
200
100
2018(f)20172016201520142013201220112010 2019(f) 2020(f) 2021(f) 2022(f) 2023(f) 2024(f) 2025(f) 2026(f) 2027(f) 2028(f)
0
1,000
UK: 1.1%

Megafactory Impact On Raw Materials
Raw materials | PriceTrends
SEPTEMBER 2018
Raw material demand vs global lithium ion cell/Megafactory capacity
The data in this chart does not constitute a forecast, and assumes 100% utilisation rates
Benchmark’s forecast numbers are available via a separate subscription, please contact info@benchmark minerals.com for further information
2017
144.8 GWh
2023
658 GWh
2028
1102.5 GWh
0
1,500,000
1,200,000
900,000
600,000
300,000
Graphite
Lithium
Nickel
Cobalt
Tonnes
MATERIAL 2017 2023 2028
LITHIUM 115,840 526,400 882,000
GRAPHITE
ANODE
173,760 789,600 1,323,000
COBALT 57,581 143,987 218,412
NICKEL 58,395 296,700 513,200
TOTAL GWh 144.8 658 1102.5
1M Y-O-Y YTD TODAY LAST
GRAPHITE INDEX -0.1% 1.5% 0.4% 143.0 143.2
Benchmark Flake Graphite Price Index (tonnes)
Source: Benchmark Mineral IntelligenceSource: Benchmark Mineral Intelligence
Benchmark Lithium Price Index (tonnes)
1M Y-O-Y YTD TODAY LAST
LITHIUM INDEX -3.1% -6.9% -7.1% 261.6 270.1
Cobalt sulphate vs cobalt battery metal
These price indices are taken from Benchmark’s monthly
price assessments for lithium, graphite anode and cobalt.
Our price assessments are used by the battery supply chain
to negotiate contracts.
To gain access to our price databases email:
info@benchmarkminerals.com
or contact your product manager for more information. Jan
2017
Feb
2017
Mar
2017
Apr
2017
May
2017
Jun
2017
Jul
2017
Aug
2017
Sep
2017
Oct
2017
Nov
2017
Dec
2017
Jan
2018
Feb
2018
Apr
2018
May
2018
Jun
2018
Jul
2018
Aug
2018
Sep
2018
Mar
2018
USD/lb
USD/tonne
20
30
40
50
Cobalt sulphate (100% cobalt contained)
Cobalt battery metal
44,085
60,521
76,957
93,393
109,829
2000250030003500400045005000
Jul 17 Aug 17 Sep 17 Oct 17 Nov 17 Dec 17 Jan 18 Feb 18 Mar 18 Apr 18 May 18 Jun 18 Jul 18 Aug 18 Sep 18
100
120
160
110
150
140
Sep 2015 2017 20182016 Sep 2018
80
100
120
140
300
160
180
200
220
240
260
280

Company Data
SEPTEMBER 2018
Global Lithium Ion Battery Capacity in 2023
Smallest
capacity
Largest
capacity Source: Benchmark Mineral Intelligence
658 GWh
Total:
COMPANY TICKER COUNTRY CURRENCY MARKET CAP SHARE PRICE PREVIOUS
MONTH
PERFORMANCE
BASF SE BAS GERMANY EUR 70,209.00 76.44 79.64 ▼
BEIJING EASPRING MATE-
RIALTECHNOLOGY CO.,
LTD.
300073 CHINA RMB 11,045.00 25.29 23.57 ▲
BYD CO LTD 002594 CHINA RMB 134,146.00 47.80 44.46 ▲
CONTEMPORARY AMPEREX
TECHNOLOGY CO LTD
300750 CHINA RMB 160,236.00 73.00 65.50 ▲
DYNAVOLT RENEWABLE
POWERTECHNOLOGY CO
LTD
002684 CHINA RMB 4,068.00 7.17 6.89 ▲
EVE ENERGY CO LTD 300014 CHINA RMB 12,148.00 14.15 13.54 ▲
GUANGZHOU GREAT
POWER ENERGY &TECH-
NOLOGY CO LTD
300438 CHINA RMB 4,706.00 16.74 16.73 ▲
GUOXUAN HIGH-TECH CO
LTD
002074 CHINA RMB 15,561.00 13.69 13.19 ▲
JOHNSON MATTHEY PLC JMAT UK GBP 6,894.00 35.62 34.95 ▲
LG CHEM LTD 051910 S. KOREA KRW 25,978,000.00 365,500.00 366,000.00 ▼
NINGBO SHANSHAN CO
LTD
600884 CHINA RMB 18,750.00 16.52 16.47 ▲
PANASONIC CORP 6752 JAPAN JPY 3,276,000.00 1,323.50 1,309.00 ▲
SAMSUNG SDI CO LTD 006400 S. KOREA KRW 17,397,000.00 258,500.00 236,000.00 ▲
SK INNOVATION CO LTD 096770 S. KOREA KRW 20,666,000.00 215,000.00 193,000.00 ▲
SUMITOMO METAL MINING
CO LTD
5713 JAPAN JPY 1,135,000.00 3,986.00 3,590.00 ▲
UMICORE SA UMI BRUSSELS EUR 11,869.00 48.17 48.04 ▲
XIAMENTUNGSTEN CO LTD 600549 CHINA RMB 20,281.00 13.77 13.62 ▲
n STOCK PERFORMANCE*
Source:Bloomberg * Share prices recorded as of market close on final day of the month

Demand | Indicators and Indices
SEPTEMBER 2018
Source: Trading Economics; World Steel; US Federal Reserve; China Ministry of Industry and Information Technology; Battery Association of Japan; Intracen; OECD
Foreign exchange
Industrial production
100
Feb
2012
Dec
2013
Dec
2014
Dec
2015
Dec
2016
Dec
2017
Jul
2018
110
120
China US
Source: China Ministry of Industry and Information Technology Source: Intracen Source: Battery Association of Japan
CHINA NEV PRODUCTION JAPAN LI ION BATTERY SALESLITHIUM BATTERY EXPORTS (VALUE)
CHINA JAPAN SOUTH KOREABEV PHEV EV OTHER
*Not all figures yet reported
$/0,000
Sep17
Oct17
Nov17*
Dec17*
Jan18*
Feb18*
Mar18*
Apr18*
May18*
Jun18*
Aug18*
Jul18*
0
300,000
600,000
900,000
12,000,000
15,000,000
Jan18
Feb18
Mar18
Apr18
May18
Jun18
Jul18
Aug18
Sep17
Oct17
Nov17
Dec17
0
40,000
80,000
Units
120,000
160,000
Quantity
May18
Jun18
Jul18
Aug18
Sep17
Oct17
Nov17
Dec17
Jan18
Feb18
Mar18
Apr18
0
30,000
60,000
90,000
120,000
150,000
6.0
Jan
2014
Jan
2016
Jan
2015
Sep
2018
Jan
2018
Jan
2017
1,250
150
900
100
7.0
KRW JPY RMB
2017 Q2 2018 JUN JUL AUG
CHINA
EV PRODUCTION 53.58% 79.05% -8.33% 2.27% 10.00%
INDUSTRIAL PRODUCTION
M-O-M - - 0.35% 0.48% 0.52%
Y-O-Y - - 6.00% 6.00% 6.10%
GERMANY
M-O-M - - -0.70% -1.10% -
Y-O-Y - - 2.70% 1.10% -
JAPAN
LI-ION BATTERY SALES - -9.31% -6.63% 0.55% -
LITHIUM BATTERY
EXPORTS
-0.86% -7.05% -5.21% -7.53% -
M-O-M - - -1.80% -0.20% -
Y-O-Y - - -0.90% 2.20% -
KOREA
LITHIUM BATTERY
EXPORTS
46.76% 3.08% -2.86% 10.42% -
M-O-M - - -0.70% 0.40% -
Y-O-Y - - -0.40% -0.40% -0.40%
US
M-O-M - - 1.00% 0.40% 0.40%
Y-O-Y - - 4.00% 4.00% 4.90%
SUPERALLOY INDICATOR 91.74% 35.27% 163.39% 30.46% -

Benchmark Megafactory Assessment exceeds 1 TWh by 2028

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