•75,000 sq. ft. mfg facility •55,000 sq. ft. new facility
Advanced Lead Acid Battery Development and Manufacturing
3
SAFE HARBOR
Certain statements in this presentation are "forward-looking statements" within the meaning of the Private Securities Litigation Act of 1995. These statements include, without limitation, statements concerning the Company's ability to expand its manufacturing capabilities and bring its new PbC® based battery products to market, the Company's belief that its completed products will be the only class of advance battery of its kind and that it will be a viable replacement for older generation lead-acid batteries. These forward-looking statements are based on our current expectations and beliefs and are subject to a number of risk factors and uncertainties that could cause actual results to differ materially from those described in the forward-looking statements. Such risks and uncertainties include the risk for the Company to complete its development work, as well as the risks inherent in commercializing a new product (including technology risks, market risks, financial risks and implementation risks, and other risks and uncertainties affecting the Company), as well as other risks that have been included in filings with the Securities and Exchange Commission, all of which are available at www.sec.gov. We disclaim any intention or obligation to revise any forward-looking statements, including, without limitation, financial estimates, whether as a result of new information, future events, or otherwise.
• Operating ManagementTom Granville, CEO and Director
• 25 years as CEO and general partner in contracting, real estate and investment entities
Don Hillier, CFO• 20 years financial experience in public and
private companies engaged in manufacturing and service industries
Dr. Edward Buiel, VP and CTO• 12 years developing materials for lithium ion
and supercapacitor energy storage devices• Former project leader of the Energy Storage
Group at MeadWestvaco
Dr. Bob Nelson, VP of Manufacturing• 30 years lead acid battery R&D and
manufacturing
• Independent DirectorsBob Averill, Director
• Founder of three orthopedic implant companies
Dr. Howard Schmidt, Director• Exec. Director Rice University Carbon
Nanotechnology LabGlenn Patterson, Director
• Former CEO Oregon Electric, $130 million electric utility infrastructure contractor with a manufacturing division
Stan Hirschman, Director• President C Point, extensive public company
experience. Dr. Igor Filipenko, Director
• International entrepreneur with interests in more than a dozen companies worldwide ranging from manufacturing to oil exploration
Michael Kishinevsky, Director• Lawyer and entrepreneur. President of a
carbon company S Walker Wainwright, Director
• 30 years investment banking experience
EXPERIENCED MANAGEMENT TEAM
Standard (Lead-Lead)
Activated Carbon Electrodes
PbC® technology (Lead-Carbon)
TECHNOLOGY PLATFORM
• Commercializing new Advanced Lead Acid Battery TechnologiesPbC® Technology (Lead Carbon)
• Higher performance• Less Lead = Less Weight• Significantly longer life• Faster recharge time• Higher cycle efficiency
• ManufacturingStandard lead acid batteries
• Contract manufacturing• Branded lead acid battery
Manufacturing carbon electrodes• Target Markets
HEV / EV / PEV VehiclesHybrid Truck/Bus/TrainGrid-based Energy StorageTruck Auxiliary Power UnitMilitary Applications
COMPANY OVERVIEW
MARKET DRIVERSEU legislation on CO2 emission (2012: 160 to 120 g CO2/km for 65% of the fleet ramping to 100% by 2015.) US legislation on mileage (2015: mileage from 20 to 35 miles/gallon)
Car manufacturer required to improve fuel efficiency
=> New focus on MICRO HYBRIDS that will use ADVANCED LEAD ACID BATTERIES
CURRENT CARS
MICROHybrid
MILDHybrid
FULLHybrid
EV PHEV
FULL ELECTRIC DRIVECAPABILITY (Limited)
START/STOP+REGEN BRAKINGSTART/STOP
HYBRID VEHICLES ELECTRICALVEHICLES
Full ELECTRIC DRIVE10-100+ MILESExample:
HYBRID VEHICLES
Example Micro Hybrid: Saturn Vue
Limited Engine Modification
• Starter/Alternator replaced with Integrated Starter/Generator
• Remarkably similar to the standard alternator as shown in the picture
• 2 electric machines replaced by 1 – almost cost neutral for the drive train
Hybrid Types
Propulsion source Fuel / CO2savings
Applications
Micro hybrid
ENGINE ONLY
Electric motors provide functions such as auxiliary power, starter/generator, managing engine stop/start and may or many not use regenerative braking to charge the battery
5% to 15%
Audi A4 TDi Concept eBMW Ed ‘EfficientDynamics’Fiat 500 PUR-0² / Ford ECOnetic series Hyundaï i20 Blue / Kia Cee’d ISG Stop&GoMercedes ‘BlueEfficiency’ C classToyota Yaris /Auris Stop&Start
Mild hybrid
ENGINE + ELECTRIC MOTOR BOOST
Electric motor provides supplementary torque to the gasoline or diesel engine, but is never the sole source of driving power (up to 10% of the maximum engine power)
15% to 25%
Audi A1 Sportback ConceptBMW ActiveHybrid /Lexus HSCitroën C4 HYmotion2 / Honda Civic HybridHyundaï Sante Fe HybridKia Cee’d/Soul Hybrid / Mazda KiyoraMercedes BlueHybrid S ClassToyota Accord Hybrid
Full hybrid or strong hybrid
ENGINE OR ELECTRIC MOTOR Vehicle can be driven by the electric motor or the engine independently or together (electric motor provides around 40% of the maximum engine power as additional torque)
25% to 50%
Chevrolet VoltFord EscapeHonda Insight Toyota Prius
EV or PHEV or Series hybrid
ELECTRIC MOTORSole driving power source (no gas engine)
100% Bollore/Pininfarina B0Renault Zero Emission ConceptMini « E » / Mitsubishi iMiEVToyota FT-EV / Venturi Voltage
HYBRID VEHICLES
EU CO2 Reduction and US Café Requirements
95 g CO2/km**100%Long term (2020?)Europe
130 g CO2/km**1002015Europe
130 g CO2/km**802014Europe
130 g CO2/km**752013Europe
130 g CO2/km**652012Europe
35.5* MPG 1002016US
Requirement% of FleetDateRegion
*- Current US average fleet fuel economy = 20 MGP.**-130 g CO2/km = 42.4 MPG
EU CO2 Reduction Requirements
• Average Gasoline Carbon Content: 2,421 g/US Gallon1
• 1 Gallon Gasoline produces 2,421 X 44/12 = 8,877 g CO2
• EU Requirement = 130 g CO2/km
8,877 g CO2/gal X 0.621 mile/km X 1 km/130 gCO2 = 42.4 mpg
(based on US gallon, 48.7 miles/UK gal)• M = 5513 / C where
M = mileage in mpg (US gallon)C = CO2 emissions per km (g CO2/km)
1 Source: US EPA
MICROHybrid
MILDHybrid
FULLHybrid
EV PHEV
2013: 17M Hybrid cars
2008: 1.1M Hybrid cars
Source: Valeo
20080.4M Cars
80%2013
13.6M Cars
1.2M Cars 0.56M
Cars 12%
EUROPEAN HYBRID VEHICLE MARKET 2008-2013
2.0M Cars
7%<1%
Supplemental Slides
Lead Acid vs. PbC®battery in Micro Hybrid
1 Source: Ford Motor Company2 NiMH end of life power performance degrades with time3 Based on 3,000 A S discharge, time required to recover discharged energy4 $1,561 (Nissan Altima NiMH Hybrid) and $4,770 (Saturn Vue NiMH Hybrid) Cost Premiums (Source Deutsche
Bank)
1,500 -4,8004
300
250
150
Cost ($)
17-25 s
17 s
24 s
500 s
Time Between
Start/Stop Events3
Full90-602200NiMH
Full90200PbC®battery (Future)
Mild84150PbC®battery (Present)
Micro30120VRLA
Max Level of Hybrid
Energy Efficiency
(%)
Charge Current (Max)
16
AXION PowerCube™
• Axion has developed solutions for renewable energy and distributed utility grid energy storage with the PowerCube™,an advanced Battery Energy Storage System (BESS).
• Utility/industrial energy storage deviceUp to 1 MW per cubeScalable up to 25 MW
• Applications Power qualityPower arbitrageOutage protection
AXION PowerCube™
• Target MarketsUtilitiesGrid based electrical energy storageIndustrial energy storageRenewableMilitary
• EconomicsDOE/Sandia target < 1,000 $/KWPowerCube < 1,000 $/KW total installed cost
• PbC Battery <500 $/KWOther battery technologies > 1,000 $/KW total installed cost
• Most other advanced batteries > 1,000 $/KW• Traction
Proposals out: 4 demonstration facilities (250-3,000 KW)Projects: 2 approved, 2 under review
AXION PowerCube™
Automotive MarketBMW ● FIAT ● FORD ● PSA ● Renault ● Suzuki ● Toyota ● VW ● VDAIndustrial and Motive Power MarketJohn Deere ● Ingersoll Rand ● Ryder ● Penske ● AT&T ● Bell Canada Crown Equipment ● Emerson Network Power ● Norfolk Southern CorpLockheed Martin ● York Electro-Mechanical Corporation
Wind Energy Storage Market Utility Grid Support Market
PV Storage Market Industrial UPS Market
CURRENT CUSTOMERS
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MILITARY APPLICATIONS
• Oct, 2008 Axion awarded $1.2 Million in Federal funding to develop PbC® batteries for Navy and Marine Corps Vehicle Applications
MANUCTURING PARTNER: EXIDE
• Exide is one of the largest lead battery manufactures in the world
• Exide currently sells to virtually all automotive OEM’s
• Axion’s PbC® Battery is an enabling technology for more efficient micro and mild hybrid vehicle technologies
VRLA fails cycle life and efficient targets
Other advanced batteries are significantly more expensive and require significant vehicle modification
• Axion will sell PbC® electrodes to ExidePossibly license technology later
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MANUCTURING PARTNER: EAST PENN
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AXPW - INFORMATION
Symbol AXPW
Corporate Headquarters New Castle, PA
Stock Price (09/03/09) || 52-Week Range $2.35 || $0.87 – 2.75
Shares Outstanding (06/30/09) 26,453,437
Market Capitalization $62M
Volume (daily 90-day average) 18,028
Debt (06/30/09) $0
Cash (06/30/09) $950,013
Insider Ownership 59%
Institutional Ownership Shares 47%
Full-time Employees 51
Fiscal Year Dec 31
Accounting Firm Rotenberg & Co., LLP
AXPW - INFORMATION
* Officers, Directors and 5% or greater stockholders
Total Insiders *
Common Stock 26,453,437 16,500,330
Convertible Preferred Stock(assuming full conversion into common) 9,355,276 6,026,388
Common Stock Purchase Warrants(average exercise price $2.91) 14,128,772 11,273,536
Common Stock Purchase Options(average exercise price $2.98) 1,911,905 1,335,455
Fully Diluted(after receipt of $46,803,451. in warrant and
option exercise proceeds)51,918,140 34,135,709
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SUMMARY
• Sales and manufacturing of conventional lead acid batteries
Utilize current manufacturing capacity• Contract manufacturing• Axion branded batteries
• Sales and manufacturing of Axion PbC®batteries
Fulfill funded and internal projectsManufacturing carbon electrodes
• Pursue military contracts• PowerCube™ development and sales• Leverage Exide and East Penn relationships for
HEV applications• Continue to explore government grant
opportunities
CONTACT INFORMATION
Axion Power International, Inc.New Castle, Pa
Tel: +1-724-654-9300www.axionpower.com
Stephanie [email protected]