1. 9. Environmental regulation impacting Rechargeable Batteries in Korea May 21 th, 2013 5 th World Rechargeable Battery Regulatory Forum in 2013 WRBRF 2015 PPT 9.

2. Chemical Control Act Overview Main Contents In order to prevent environmental danger and to protect citizen’s health, government implemented ‘Chemical Control Act’ in February 2, 1991. - Amended to KReach in January 1, 2015 Chemical Control ActKReach Register new chemical substance onlyRegister new chemical substances and existing substances that will be imported /created over 1 ton/year Registration Range -Simple Examination -Formal Examination under 1 ton -Formal Examination over 1 ton -Polymer Examination Registration Range -Less than 1 ton -1~10 ton -10~100 ton -100~1,000 ton -Over 1,000 ton -Polymer, intermediate, biocide Submission - Chemical, physical-chemical, detrimental information Submission -Chemical, physical-chemical, detrimental(more items), danger Information ※ Less than 5 years of imprisonment or less than 100million KRW of penalty for violation

3. Action Plans 1.Report annually purpose and quantity of any new chemical substances or existing substances that will be imported/created/ sold more than 1 ton/year 2.Submit all papers regarding danger of chemical substances that will be imported/ created more than 100 tons/year ※ Management of chemical substances should be followed by KReach

4. Main Contents In 2014 December 5, ‘Cobalt lithium manganese nickel oxide(NCM)’ was designated as toxic chemical. - 화관법 제 13 조, 동법 시행령 제 2 조 및 동법 시행규칙 제 9 조 New Regulation Since NCM is designated as toxic material, companies who produce NCM should : 1.Add warning phrase on the battery that includes NCM 2. Report as a toxic material producer 3. Submit NCM management planner( 위해관리계획서 ) and toxicity evaluation( 유해성평가서 ) 4. Follow production directory 5. Reinvest in plant and equipment

5. World Market Share of Cathod Material Source : L&F Material Report As market share of NCM is increasing, KBIA is expecting negative effects from toxic material regulation