Continuous Web Solutions CWS LiIon Battery LIB Separator

Continuous Web Solutions CWS Li-Ion Battery (LIB) Separator March 2008

LIB Separator • To construct Li-Ion cells, the coated positive and negative electrodes are wound or laminated with chemically soaked very thin (20 micron) porous plastic separators between the two electrodes which prevents the two electrodes physically contacting each other. HONEYWELL - CONFIDENTIAL

Layers of a Lithium Ion Cell Anode Cathode Separator Aluminum foil Copper foil HONEYWELL - CONFIDENTIAL

Lib Manufacturing Process of LIB separator LIB Separator • The manufacturing process of the LIB separator is very similar to a Biaxially oriented film process. • Unlike the conventional biaxial stretching in the Biax process, the film is not heated to the plastic point and stretched • As a result the film is cracked and hence a lot of pores are generated. • The primary quality concerns for this product is the thickness and the secondary concern is the porosity. HONEYWELL - CONFIDENTIAL

Manufacturing Process of LIB separator for LIB Separator HONEYWELL - CONFIDENTIAL

LIB Separator product specifications • The polymer resin used for LIB Separators are polyolefin family - PE, PP • Typical thickness is about 20 micron • Web width is relatively narrow, typically less than 2 meter • Primary measurement objective is a non-contact caliper measurement • The density of the final product is variable - The thickness is not always proportional to the BW • With a lot of pores, the final product looks hazy but it is made from a clear polymer resin - no additives are added HONEYWELL - CONFIDENTIAL

LIB separator system configuration Plant LAN/TCP IP Desktop User Station Field. Point I/O Color Printer System LAN TCP/IP MSS Autodie I/F MSS Scanner HONEYWELL - CONFIDENTIAL

LIB Separator Market • Every inch of LIB coated electrode used to assemble a LIB cell, at least the same amount of LIB separator is required • HMX has sold 30 LIB coater systems but has sold only two LIB separator systems in Korea only • We have identified, so far, 25 LIB producers globally with multiple LIB separator lines HONEYWELL - CONFIDENTIAL

Lithium secondary battery Manufacturers • Japan - Sanyo, Matsushita, Sony, NEC, A&T, Nippon Moli • Korea - LG Chemical, Samsung, SK Corp, Kokam, Korea Power Cell, Dongbu Fine Cell • China - Green Cell, B&K • Taiwan - >5 companies • Canada - Avestor • USA - AMS, Saft America, Valence, Ultralife Batteries • Europe - Degussa HONEYWELL - CONFIDENTIAL

LIB Separator references and order forecast • Q 1/2004 1 system • 2005 Korea Forecast - Q 1/2005 1 system - Q 3/2005 1 system - Q 4/2005 2 systems SK Corporation/Korea SK corporation, order received Dongbu Fine Cell SK corporation § Q 4/05 SK Corporation order depends on the results of the Q 1/05 system • 2006 & 2007 forecast - 10 systems/year, world wide, if we have a system with a non- contact caliper sensor 2 - 3 systems/year, world wide, if we do not have a caliper sensor § Basis weight measurement only system will have to compete with lower priced systems from NDC, EGS, Yokogawa, etc. HONEYWELL - CONFIDENTIAL

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