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Commercialized Technology and Future Market

Development Trends of Electrolyte & Separator for LIB

呂學隆 Hsueh-lung Lu (Mark)Taiwan Battery Association

Industrial Economics & Knowledge Center (IEK)

Industrial Technology Research Institute (ITRI) ,Taiwan

2017/10/18

鋰離子電池電解液與隔離膜市場未來發展與商品化技術趨勢sinobattery

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Outline

1

Market demand trends of downstream batteries

A demand & supply status of electrolyte and separator materials

Commercial tech. & product development trends of materials

Suggestions & conclusions for the future

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WW LIB Market Demand: Positive in General

Source: ITRI/IEK Analysis (2017/10)

2016: Achieved 103GWh in total, YoY~26%, most comes from xEV shipments

The future growth depends upon the xEV/E-bus promoting policies in China, US & EU, and progress in

replacing other secondary batteries in applications like PT, UPS/BESS, industrial vehicles

2011 2012 2013 2014 2015 2016 2017E 2018F 2019F 2020F

Others 1052 2374 3205 3850 4872 7072 7906 8582 9471 10882

Power tool 1306 1352 1610 2178 2744 3016 3846 4142 4777 5255

Power Bank 111 198 391 692 427 523 600 624 655

BESS 204 677 1867 1650 1852 2480 4923 6251 7429 8688

UPS/Station 179 191 376 399 602 1196 1882 2046 2275 2500

Other Vehicle 1658 2309 2623 2582 3406 4611 5157 5582 6274 7046

E-Pedelec/Bike/Scooter 795 1096 1828 2347 3050 3555 4271 5006 5887 6549

E-Bus/Truck 489 533 1056 3851 8854 9298 11744 13580 14976 16932

EV 955 2309 5620 10250 16167 34532 48155 67774 89040 102233

Wearable 32 77 181 643 1441 1818 2317 2828

Tablet 3428 6030 9837 11964 10982 8284 8550 8745 8710 8640

NB 13266 13279 10157 10151 9655 9191 9042 8988 8604 8585

Cellphone 10466 12727 15898 17551 18871 19174 20026 20551 21020 21000

0

50000

100000

150000

200000

250000

81928

22%

2

67241

103479

127466

153665

181404

201793

26%23%

21%

18%

11%

Worldwide LIB Cell Market Shipments by Applications (MWh/yr)sinobattery

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WW LIB Market: Power Mainstream Now

3

2011 2012 2013 2014 2015 2016 2017E 2018F 2019F 2020F

Stationary 383 868 2243 2049 2454 3676 6805 8297 9704 11188

Power 5203 7599 12737 21208 34221 55012 73173 96084 120954 138015

IT/CE 28212 34521 39327 43984 45253 44791 47488 49284 50746 52590

0

50000

100000

150000

200000

250000

Worldwide LIB Cell Market Shipments by Applications (MWh/yr)

Source: ITRI/IEK Analysis (2017/10)

2016: 47% LIB used in the IT/ESS applications, power applications (xEV+PT+others) increased to 53%

2016: Power LIB shipment overlap IT/CE applications first time

IT applications are mature and have weak growth, power use LIB may occupy 68% of LIB in 2020

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Portable Devices Need Safety, HV/ED & Fast Charge

Source: Company Data (2017/10) 4

700+Wh/L, 4.4V LCO is confirmed to move in mass production

Accidents in 2016 caused the conservative review for the higher ED development, delayed 12~18 months progress

Others: Safety, cost, arbitrary designsinobattery

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xEV Battery Technologies are Still Developing

5

xEV requests differ by different vehicle design and functions

Both JP & KR companies keep Ni rich, higher voltage materials and involved Si anode for the longer driving range, xEV cost-down and better CP ratio

Requests for xEVB electrolyte: stable and weakness coverage

Source: Company Data (2017/10)

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xEV Battery Technologies are Still Developing

6Source: Company Data (2017/03)

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Development of Li-ion Battery for Toyota

Hybrid Vehicles

7

2011 Prius α Cell Design 2016 Prius Cell Design

Source: Toyota (2016/01)

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Starting Point for the Material Market Discussion：Quantity per Unit

Material Major Elements 2.2Ah 18650 Cy Prismatic 1Ah Pouch 2Ah EV/ESS kWh

Cathode LCO, NMC 16g 6g 18g

Anode Carbon, Oxide/Alloy 8g 3g 10g

Electrolyte LiPF6, EC, PC,…. 4~5g 2~3g 5.5~6g 1~1.5kg

Separator PP, PE, Non woven,…. 0.1㎡ 0.06㎡ 0.1㎡ 15~20㎡Al Foil 2g 1g 3g

Cu Foil 4g 2g 7g

Others Binder, Tab, Packaging,…..

Source: ITRI/IEK Analysis (2017/10)

正極Cathode 負極Anode

隔離膜Separator

正極端片Cathode lead

負極罐體Anode can

下絕緣墊片Insulator

上絕緣墊片Insulator

帽蓋Top cover

密封圈 安全閥Safety vent

限流開關

圓筒型Cylindrical

正極Cathode 負極Anode

隔離膜Separator

正極端片Cathode lead 負極罐體

Anode can

絕緣墊片Insulator

密封圈

安全閥Safety vent

端子極板Terminal plate

封罐片

正極墊片

封裝膠體

方(角)型Prismatic 鋰高分子Polymer

正極極耳Cathode Tab

絕緣墊片Insulator

負極Anode

鋁質外包裝袋AI laminate film

負極極耳Anode Tab

正極Cathode

負極端片Anode lead

方型(Prismatic) 軟包裝型(Pouch)圓筒型(Cylindrical)

8

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Electrolyte Market Effects by Good xEV Sales

Source: ITRI/IEK Analysis (2017/10)

Electrolyte shipment is 92,640MT in 2016, xEV base achieved almost 40K MT

Growth comes from xEV mainly

Worldwide LIB-used Electrolyte Market Demand Forecast(MT/yr)

2012 2013 2014 2015 2016 2017F 2018F

ESS/UPS 500 965 1190 1340 1802 2655 3782

xEV 4200 5963 10917 21380 39488 59280 83742

IT 42450 45962 49726 53328 51350 52865 53076

YoY% 12.2% 16.9% 23.0% 21.8% 23.9% 22.5%

0.0%

5.0%

10.0%

15.0%

20.0%

25.0%

30.0%

0

20000

40000

60000

80000

100000

120000

140000

160000

9

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Electrolyte Price Effected by the Li Price and Become the

First Managing Issue

Price in

2017Q3

Foreign maker

price

Chinese maker

price

Average margin of

Chinese maker

Consumer

Electronic

Product DemandUSD$16~20/kg

USD$12~22/kg 10~20%xEV Application USD$18~22/kg

ESS and Others USD$16~20/kg

Source: ITRI/IEK Analysis (2017/10) 10

Two major effect factors

Raw material price(LiPF6) : Price effected by the price increase of LiCl &

Li2CO3

Oversupply competition: the business of leading companies is good as

shortage because the strong demand

In the past 3 years, price decrease 5~10% per year, may turns to increase

Chinese maker still provide competitive price to earn the order

Cause the Japanese/Korean maker need to follow the lower price sinobattery

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Separator Market Keeps Strong Growing

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017F 2018F 2019F 2020F

Market Demand 136.2 172.3 230.2 290.3 255 367.3 435.7 520 632.3 771.8 1187 1613 2066 2714 3359 4145

YoY% 26.5% 33.6% 26.1% -12.2% 44.0% 18.6% 19.3% 21.6% 22.1% 53.8% 35.9% 28.1% 31.4% 23.8% 23.4%

-20%

-10%

0%

10%

20%

30%

40%

50%

60%

0

500

1000

1500

2000

2500

3000

3500

4000

4500

Source: ITRI/IEK Analysis (2016/11)

Worldwide LIB-used Separator Shipment and Growing Rate(M㎡/yr, %)

2015： Demand is 1187 Million ㎡/yr, YoY=53.8%

2016 ：Strong demand to 1613 M㎡/yr, YoY=28.3%,

For the mature IT applications and strong xEV use: keep positive >20% growth rate

11

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Price Decrease Trend is Stable: Down and Down…Worldwide LIB-used Separator Price by Material(USD$/ ㎡)

2009 2010 2011 2012 2013 2014 2015 2016

PE Single 3 2.8 2.5 2.2 2 1.1 1 0.8

PP Single 2.5 2.2 1.8 1.6 1.4 1.3 0.8 0.6

Multi-layer 4.2 4 3.7 3.5 3 2.4 2.2 2

Non woven 2.1 2 2 1.8 1.4 1 0.9 1

Chinese Average 1 0.8 0.7 0.6 0.6

0

0.5

1

1.5

2

2.5

3

3.5

4

4.5

Source: ITRI/IEK Analysis (2017/10) 12

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Coating Separator Penetration Ratio in 2016

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

SDI

LGC

Panasonic

Sony

Maxell

ATL

BYD

Lishen

Panasonic EV

AESC

LGC EV

Polymer Coating Inorganic Coating Without Coating

13

46% of the separator coated in 2016, expected growth in the future

Focus on high-end, high demand spec applications

High-end IT applications, xEV, power tool penetration

Panasonic, PEVE, SDI: coating on anode electrodeUsage Ratios of Coated Separators by Major LIB Suppliers

Source: ITRI/IEK Analysis (2017/10)

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KR Company S: PE Firm HR Binder Concept

14Source: Company’s Data (2017/09)

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TORAY: SETELA Co-Extrusion

15Source: Company’s Data (2016/11)

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Batteries Makers Handle the Coating Process

Companies Method Base Coated material

Panasonic Coating in-house Single Wet

Single/Tri DryAlumina coating

(HRL)

Coating in-house Single Wet

Single/Tri DryTiO2

Purchase the coated

separatorAramid(Sumitomo)

Maxell Coating in-house Single/Tri Dry Boehmite

Samsung SDI Coating in-house SFL

LGC Purchase the coated

separatorCeremic (SK,

Asahi)

Coating in-house Single Dry SRS

In-house PE Wet

SDI xEV Coating in electrote Cu foil SFL

TOYOTA Coating in electrote Cu foil (HRL)

Source: ITRI/IEK Analysis (2014/08) 16

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Additive: "MSG" of Electrolyte

Electrolyte: "Blood" of lithium ion battery

mass transfer media (ion migration, mass transfer, energy transfer)

dissolved substrate (lithium salts, additives) –supported electrolyte (Gel Polymer electrolyte, solid electrolyte)

Additive: why it is called as "MSG" of electrolyte

obvious effect by a small amount (less than 5%/item normally)

extend the function of normal electrolyte (overcharge, shuttle)

17Source: ITRI/IEK Analysis (2014/11)

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Classification of Additives Classify from function

Comprehensive type (VC, FEC, LiTFSI)

High-tem type (PS, BS, VEC, PC)

Low-tem type (LiFSI, EA, MA, ESI)

Overcharge type for gas/heat generator-BP(E-one), CHB(Mitsubishi), HTP)

Overcharge type for Electron shuttle-Tetramethylphenylenediamine, tricyanobenzene2,4 difluoroananisole (Sony)

High-voltage type (FEC, DFEC, LiPO2F2 for low )

Classify from effect

Film formation additive (VC, FEC, PS, RPS)

Non film formation additive (viscosity dilution, boosted conductivity, flame-retardance)

Classify from state

Solid additive (salts LiDFOB, LiFSI, high melting point ESa, SN)

Liquid (most used), gas (not often used, like CO2 hard to measure)

18Source: ITRI/IEK Analysis (2014/11)

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Overcharge Type Additives: Elctropoly-

merization

• Use electrolyte additives to make the cells inherently safe

during overcharge abuse

• CHB(Cyclohexyl benzene): Popular used of Mitsubishi

• BP(E-one in power cell)

• TP

• TMPP

19Source: ITRI/IEK Analysis (2014/11)

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Flame-retardant Additives

• 腈基硼烷• 氟代硼酸酯

• 磷腈• TMP

• TFP

• TBP

• TDP

• BMP

Fluorine+

Phosphorus

Phosphorus+

Nitrogen

Boron+

Nitrogen

Fluorine+

Boron

20Source: ITRI/IEK Analysis (2014/11)

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Thank you

呂學隆 Mark Lu工研院產業經濟與趨勢研究中心資深產業分析師Certified Industrial Analyst

Industrial Economics & Knowledge Center (IEK)

Industrial Technology Research Institute (ITRI)

Address: Rm.302, Bldg.10, 195 Sec. 4, ChungHsing Rd.

Chutung, Hsinchu, Taiwan 310, R.O.C.

新竹縣竹東鎮中興路四段195號10館302室Email：mark@itri.org.tw

TEL:+886-3-5912495

21

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