Battery Separator Developments 2018 2019 JULY 2019 Overview

Battery Separator Developments 2018 - 2019 JULY, 2019

Overview • Introduction to the battery applications • Lead Acid Battery manufacturing process • Ahlstrom-Munksjo innovation from Fabriano • Battery separator product portfolio in Fabriano

Lead Acid battery application and type Automotive - 60% of the LAB market in value 80% in volume - 400 M batteries/year globally - Includes passenger cars, commercial, HEV and EV Motive and deepcycle - 15% of the LAB market in value 10% in volume - Forklifts, golf carts, railroad, mining (ebike) Stationary - 25% of the LAB market in value 10% in volume - Telecommunication, data centers, back-up, uninterruptible power supply (UPS) • • Battery separator technology aligned with Ahlstrom-Munksjo capabilities Initial platform: Ahlstrom-Munksjo (AM) Fabriano Battery types - Standard Flooded Batteries: SFB Used for start, ignition and lighting – basic functions - Enhanced Flooded Batteries: EFB Accept more cycle than SFB - Valve Regulated Lead Acid: VRLA (also called AGM as Absorbed Glass Mat) Higher cyclability, less maintenance

Battery manufacturing steps 1/3 1 - Grid manufacture 2 - Electrode plate manufacture - A lead paste is coated onto the grid - Function: release and adsorb lead charges - The paste is cured in ovens but remains brittle - Lead base material for electrode - Function: support active electrode material and collect current Most of battery manufacturers wrap the pasted plate with a paper or a synthetic tissue to prevent workers to be in contact with lead and to prevent dusting of the plate during the use of the operating life of the battery

Battery manufacturing steps 2/3 3 - Separator insert - During the plate assembly a separator in placed between the positive and negative plates to prevent contact and allow ions to displace freely Depending on the battery type and final usage, separator can be either PVC, PE, Rubber films, glass reinforced films and Absorbed Glass Mat 4 - Assembly Placing the plates together and insert then in the battery case

Battery manufacturing steps 3/3 5 - Connecting and closing 6 - Filling, Formation and Test Filling with electrolyte Charging Formation and deep cycle tests Plates are connected by welding and case is closed

Battery separator manufacturing in AM Fabriano Microglass for AGM (Absorbed Glass Mat) in AM Fabriano – main challenging points requiring innovation - Basis weigth : 80 to 340 g/m² - challenging range to achieve good formation at different basis weight - Specific surface area: 1. 2 m²/g ; 1. 4 m²/g and 1. 6 m²/g – challenging raw material flexibility in stock preparation - Product range tested on the machine between July 2018 and July 2019, see table below 7 December 2021 Source: Su. P survey 2018

Process innovation in AM Fabriano High efficiency cleaning system, optimized for battery separators and other microglass products (optimization of a proprietary process) Stock preparation of microglass stock designed for wide range of raw materials Formation process for an optimized microglass structure (proprietary)

Results of process improvements • Grades produced in trials between July 2018 and July 2019 show improved Wicking behavior at a given BET level • See tables below to compare with samples from competitors available in the market Basis Thickness Acid Weigth @10 Kpa Wicking BET AM Fabriano grades (g/m²) mm mm/2 min m²/g BS 85 -0 80 0. 5 60 1. 2 BS 140 -1 130 0. 8 61 1. 2 BS 230 -5 225 1. 6 63 1. 6 BS 230 -6 225 1. 6 65 1. 4 BS 350 -1 340 2. 6 57 1. 6

Conclusions • Process innovation in the Fabriano plant of Ahlstrom-Munksjo has focused on improvements in the formation of battery separator, allowing to reach a range of basis weight up to 340 gsm – Optimized cleaning process for microglass impurities – Flexible formation for a wide range of microglass fibers with a wide range of basis weight • The main outcome has been the possibility to produce trial grades with improved wicking characteristics, covering the full range of BET levels targeted for the trials • Process stability and quality level has allowed to start commercial production of selected grades

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