Re-use & Second Use of advanced rechargeable batteries for e-mobility in Europe. 6th. WRBRF Berlin, Germany March 23-24, 2015 PPT 8.1. Follow-up of WRBRF, May 2013

Can it be a realistic option for EV-batteries life cycle extension prior to recycling, to meet the EU Resource and Energy Efficiency objectives ? 6th. WRBRF Berlin, Germany March 23-24, 2015 PPT 8.1. Follow-up of WRBRF, May 2013

Prior to answering that question... 3 A couple of considerations should be examined: 1.What’s the market going to look like ? 2.What does the law say ? 3.What’s the availability of batteries ? 4.Does it make sense technologically ? 5.Does it make sense economically ? Show a few business examples Present our current position Can it be a realistic option for EV-batteries life cycle extension prior to recycling, to meet the Resource and Energy Efficiency objectives ?

1. The market expectation of industry & government of e-mobility by Germany < 30,000 units in 2015 (IQPC-de)

2. Legislation: terms used in litterature 5 Re-use Re-purposing Re-building Re-manufacturing Re-conditioning Second hand Second use Re-pairing Re-labelling Re-designing Double use Each of these ‘actions’ have different legal & economic implications for the seller, the buyer, and the user !

6 2. Legislation: terms defined ! No definition

3. Legislation - EU Political context The Roadmap to a Resource Efficient Europe concludes that if waste is to become a resource to be fed back into the economy as a raw material, then much higher priority needs to be given to re-use and recycling. The 2020 milestone for the EU should be to achieve a state where waste is managed as a resource.. 7 Priority according the Waste hierarchy Extend product life  re-use  recycle

Return Rate <<< Rate of POM Return Rate <<< Rate of POM Sales of electric cars started slowly from 2010 onwards and is expected to take-off by ~ 2015 units year sales ELV & recycling Car Service Life years Car Service Life years 3. Availability of EV-batteries (schematic view) gap Warranty – quality control returns to OEM

4. Does it make sense technologically ? 9 (Reference: Batteries2014)

4. Does it make sense technologically ? 10 Stationary battery packs with the latest technology might be more reliable and better than a 12-year old used battery (how used ?) This battery was initially designed for an automotive or industrial mobile application As an old and used battery, this battery has to be converted to a stationary application (including BMS) Does it make sense from a technologically point-of-view to put an old battery technology in a new high-tech device ?

11 5. Does it make sense economically ? Ref. ICBR2014 Also an issue for the recycling industry !

Prices of battery materials are decreasing 12 The constant market price decrease of Li batteries, makes each battery manufactured 10 years ago not very competitive

IERC Salzburg – DELL presentation Challenges for a circular economy: use resources more effectively Sometimes re-use only possible if transfer from customer in one country to refurbishment in another country Less valuable materials in the products Large volumes are lost out of the formal waste streams Basel convention: current proposed guidance does not promote re-use 13

These considerations give an indication What’s the market going to look like ? Optimistic 6-8 million on the road – big uncertainty 2. What does the law say ? Unclear, need for harmonized definitions, legal gap with (extended) producer responsibilities 3. What’s the availability of batteries ? Depends on the market availability – big uncertainty 4. Does it make sense technologically ? Old technology (10-12 years old at a time of rapid technical battery developments) in a new stationary device ? Who would want that ? 5. Does it make sense economically ? With the current material values, not likely

And what about Warranty of the original usage / warranty of the re-use or second use  who’s responsible ? 2.Insurance policy issues in case of incident (fire) > Battery in the vehicle – part of the vehicle > Battery in the vehicle, used for energy storage at home, or being charged in the garage at home Car insurance ? Home insurance ? 3.Where’s the consumer protection when different parties are involved in producer responsibility issues, product warranty, insurance matters ?

Business example 1: the Renault model 16 1.The industrial battery stays in ownership of Renault. 2.The battery is leased. 3. A practical solution to control the complete value chain. 4. It allows Renault to decide whether a battery should be re-used, go for second use, or be offered for recycling. Key: there’s no basic change of ownership

Business example 2: BMW – BOSCH - Vattenfall 17 Project Batteries of the BMW i3 will get a second life as buffer storage for solar or wind facilities. To start by end BMW expects that aftermarket alternatives or refurbished batteries will hit the market at some time in the future.

Business example 3: Field study by VW 18 From November 2013 onwards, VW will equip 20 households in Berlin with electric cars of E-Up type. The cars will be modified, enabling their batteries to feed electricity into the grid. The batteries will be charged in times when solar panels and wind turbines produce large amounts of energy and the price for electricity is low. In times of acute energy shortages, when the price for electricity is very high, the e-car can feed electricity into the grid, enabling their owners to make money. Combined energy storage to increase demand for electric cars Field-study scientifically supported by Fraunhofer In a pilot project, VW and LichtBlick (Green energy provider) want to use electric cars as forms of energy storage.

Business example 4: e-mobility industrial batteries Research initiative in the Netherlands 19

Business example 5: Ford of North America 20

Our current position - Re-use 21 o RECHARGE supports the re-use of batteries for their original applications. o This requires that quality, performances and safety standards are observed before placing the battery for a second time on the market

Our current position - Second Use 22 o RECHARGE only supports the second use of batteries when the battery remains under the responsibility of the first producer, acting as the first entity placing the battery on the market. o In absence of a legal basis and clear minimum requirements, RECHARGE does not support second use of batteries, when there is a transfer of ownership, as there are too many unknown factors that could impact product’s reliability and end users safety.