E d O W ldEnergy and Our WorldE l i C G dExploring Common Ground

to Address Key Challenges

Dow.com

David KlaneckyGlobal Business DirectorDow Energy Materials

About Dow

A Global Business• Diversified chemical company, harnessing

the power of science and technology to i d il li iimprove daily living

• Founded in Midland, Michigan, in 1897

Supplies more than 5 000 products to• Supplies more than 5,000 products to customers in 160 countries

• Annual sales of $60 billion; 52,000 employees worldwide

• Committed to Sustainability

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Built on the Foundation of Dow Global R&D

• 7,000+ R&D Employees

• $1.7B R&D Budget

• 500+ projects in the pipeline (20% Core / 80% Business)

• Dow Corporate Venturing• Dow Corporate Venturing

• Industry-leading expertise

Research Application Development Technical Service

Invent new molecules, materials, Create new product and solution Service customer requests and products and processes offerings requirements

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Sustainability: Looking Forward

18000 Energy

14000

16000M

toe)

gyConsumption

10000

12000

onsu

mpt

ion

(M

4000

6000

8000

orld

Ene

rgy

Co

0

2000

4000

Wo

1950 1970 1990 2010 2030 2050Year

data from www.bp.com

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About Dow

The Megatrends Landscape

Transportation &

Agriculture Alternative Energy& Feedstocks Construction Apparel &

Furnishings

Health & Nutrition Energy Transportation & Infrastructure

Consumerism

Energy Production& Efficiency Transportation Electronics &

Communications

Home & Personal

Functional Foods

Energy Storage Water Home & Personal CareHealthcare

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Core Markets: Enabling New Products Through Energy StorageThrough Energy Storage

Transportation• Passenger vehicle

hybrids, PHEVs, and EVs

ESS• Regulation and Grid

Reliability

Consumer• Portable electronics

• Computers and UPS

• Commercial and fleet hybrids, PHEVs, and EVs

• Renewable Integration

• Stability

Co pute s a d U Ssystems

• Smart phones

Drivers+ Energy efficiency+ Reduced emissions+ Energy Independence

+ Increase plant utilization+ Grid reliability+ Enable renewables

+ Improve performance+ Lighter weight+ Enable high-end devices 6

About Dow Energy Materials

Advancing Energy Storage

• Established in 2010 as a global business unit of The Dow Chemical Company

• Production facilities in Midland, Michigan, U.S.A. for , g ,coated anode and coated cathode materials

• Advanced Electrolyte Technologies, established in 2011 as a JV between Dow and UBE, is a global supplier of , g ppformulated electrolytes

• Research and Development facilities in Midland, MI and Shanghai, ChinaShanghai, China

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Dow Energy Materials

Dow Energy Materials strives to be a customer-focused, multi-component material supplier to battery manufacturers.

Three Keys To Succeed:y1. Improve Battery Cell

Performance through Differentiated Materials

2. Drive Down Cost to Manufacture

3 Offer Integrated Portfolio of3. Offer Integrated Portfolio of Battery Materials

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Battery Material Costs: 2015 Projection

Source: Roland Berger; Batteries 2012

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An Integrated Approach to B tt M t i l D l tBattery Materials Development

1. Technical: holistic materials development more effectively utilizes resources to accelerate

Holistic Technology Innovationutilizes resources to accelerate

advances in performance

2. Commercial: collaborations take d t f d li ti iti

Innovation

Mutual Successadvantage of and align activities

across the value chainCustomer

Engagement

Success

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Integrated Materials D l t & O ti i ti

B ild f d t l h li ti

Development & Optimization

• Builds a fundamental, holistic understanding of how materials impact cell

f

Cathode Cell

performance.

• Accelerates product development

AnodeElectrolyte

development

• Provides additional product solution options for customers Separator

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Collaboration Across the Value ChainMiti t Ri k

• Reduces innovation timelines

• Increases adoption rates

Mitigates Risk

• Increases adoption rates

• Results in products that more closely align with market needs

• Aligns R&D and capital investments with customer activities and investments

Mining Materials Components Cells Packs Application

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DEM Integrated Portfolio of Materials

C tC t LithiLithiPenetrate into the Market

Focus on Core Technology Development Disruptive technology

2013 2016 2020

Coated NMC LL-NMC5V LNMO Air

CurrentTechnology

CurrentTechnology High Energy CellsHigh Energy Cells Lithium

MetalLithiumMetal

C th dLiMnFePO4

SiOCSilicon Li Metal

Cathode

Silicon

Electrolyte Additives Solvents and Salts

Conductive Binders

Anode Coated Anode

ElectrolyteElectrolyte Additives, Solvents, and Salts

HV Electrolyte

SolidPolymer

Electrolyte Semi Perm

Separator Hybrid Membranes

Black = Active Project Red = Ext Tech Green = DCV 13

DEM R&D Cathode Materials Portfolio

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Leveraging Process Technology

• Dow’s new process technology provides long term cost-to-produce and performance advantages.− LMFP− LNMOLNMO− NMC− Others

• DEM has developed options to produce various cathode materials at commercial volumes to bridge customers’ demand as we scale-up thebridge customers demand as we scale-up the process.

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JCESR Wins $120 Million Grant fromU S DOEU.S. DOE

Developing Innovative Energy Storage Systems• Dow has joined with Argonne National Laboratory as an industry partner in the Joint Center for Energy Storage Research (JCESR) JCESR i t hi f ti l l b t i(JCESR). JCESR is a partnership of national laboratories, universities, and industry focused on transformative changes in energy storage.gy g

• The JCESR goal is to develop energy storage technologies with five times the energy density of today’s systems at one-fifth the

t i fi th 5 5 5 Plcost in five years – the 5-5-5 Plan.

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Summary

Dow Energy Materials strives to be a customer-focused, multi-component material supplier to battery manufacturers.multi component material supplier to battery manufacturers.

Three Keys To Succeed:1. Improve Battery Cell Performance through

Differentiated Materials2. Drive Down Cost to Manufacture3 Offer Integrated Portfolio3. Offer Integrated Portfolio

of Battery Materials

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