Advanced Lead-Carbon PbC Batteries

Piper Jaffray Clean Technology and Renewables Conference January 12, 2011
Thomas Granville, CEO Axion Power International Inc.,
New Castle, PA, USA www.axionpower.com

Advanced Lead Acid Batteries for Tomorrows Demanding Energy Needs

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, i h i l d without li i i limitation, statements concerning the C i h Company's ability to ' bili 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 batteries. 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 p y p p 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 www.sec.gov. forward-looking statements, including, without limitation, financial estimates, whether as a result of new information, future events, or otherwise.

Advanced Lead Acid Batteries for Tomorrows Demanding Energy Needs

Manufacturing and Development Facilities

Electrode Automation Facility (45,000 sq ft ) (45 000 sq. ft.)

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Battery Manufacturing Facility (75,000 sq ft ) (75 000 sq. ft.)

Advanced Lead Acid Batteries for Tomorrows Demanding Energy Needs

Energy Storage Processes

electrode

solution

electrode

solution

e-

eHybrid Asymmetric Device

Microporous Activated Carbon Negative + Lead Dioxide Positive

Capacitor Electrode
Non-Faradaic Surface Charge Adsorption Processes Electrostatic El t t ti Highly Reversible

Battery Batter Electrode

Faradaic Bulk Processes Phase Transitions Higher Energy Hi h E

multi-celled asymmetrically supercapacitive lead-acid-carbon hybrid battery y y p p y y

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Advanced Lead Acid Batteries for Tomorrows Demanding Energy Needs

PbC Battery Manufacturing

Standard VRLA Cell (Lead-Lead)

PbC Cell (Lead-Carbon)

Advanced Lead Acid Batteries for Tomorrows Demanding Energy Needs

Hybrid Electric Vehicles

Micro Hybrid Stop/Start

Estimated 12-18 million vehicles by 2016 (US and Europe) Production increases driven by legislation:
Europe: 130 gCO2/km (42 mpg) US: 250 gCO2/mi ( g / (36 mpg) pg)
HYBRID VEHICLES ELECTRIC VEHICLES

CURRENT CARS

MICRO Hybrid

MILD Hybrid
STOP/START+ REGEN BRAKING

FULL Hybrid
FULL ELECTRIC DRIVE CAPABILITY (Limited)

EV PHEV
Full ELECTRIC DRIVE 10-100+ MILES

Example:

STOP/START

Advanced Lead Acid Batteries for Tomorrows Demanding Energy Needs

CO2 Reduction Requirements

Region US p Europe Europe Europe Europe Europe

Date NOW 2016 (Was 2020) 2012 2013 2014 2015 Long term (2020?)

% of Fleet 100 65 75 80 100 100%

Requirement 250 g CO2/ i* /mi* (156 g CO2/km) 130 g CO2/km** 130 g CO2/km** 130 g CO2/km** 130 g CO2/km** 95 g CO2/km

*- Current US average fleet fuel economy = 20 MGP

- 250 g CO2/mi = 156 g CO2/km = 35.5 MPG

**-130 g CO2/km = 42.4 MPG

Advanced Lead Acid Batteries for Tomorrows Demanding Energy Needs

VOLUME 1st Half-09 BRAND # Units , FIAT 535,590 MINI 65,559 TOYOTA 358,982 LANCIA 61,776 Have Major 500,880 PEUGEOT Problems Soon 168,260 HYUNDAI CITROEN 437,781 RENAULT 517,783 FORD 664,582 CHEVROLET 95,564 95 564 SEAT 166,110 SUZUKI 134,014 HONDA Have Major 132,360 , KIA Problems Now 128,296 OPEL 434,218 SKODA 245,471 MAZDA 108,429 VAUXHALL 122,019 DACIA 95,036 95 036 VOLKSWAGEN 838,117 BMW 285,023 NISSAN 159,311 AUDI 323,256 323 256 MERCEDES 298,491 VOLVO 99,726 Total Volume / Average CO2 6,976,634

AV CO2 AV CO2 1st Half-08 1st Half-09 CO2 DIFF (g/ km) (g/ km) (g/ km) 134.3 129.1 -5.2 133.9 129.7 -4.2 146.5 132.9 -13.6 136.1 134.1 -2.0 138.5 134.5 -4.0 151.6 138.8 -12.8 141.7 138.8 -2.9 142.7 138.9 -3.8 148.4 140.4 -8.0 156.8 156 8 141.6 141 6 -15.2 15 2 146.0 142.4 -3.6 158.3 144.9 -13.4 154.5 146.5 -8.0 153.4 148.9 -4.5 150.5 149.5 -0.9 149.3 149.9 0.7 161.4 151.2 -10.2 155.8 152.3 -3.5 153.1 153 1 152.4 152 4 -0.6 06 159.4 152.5 -7.0 160.7 158.4 -2.2 164.5 158.9 -5.6 177.0 177 0 162.6 162 6 -14.4 -14 4 185.6 178.8 -6.8 180.4 179.0 -1.4 Advanced Lead Acid Batteries for Tomorrows Demanding Energy Needs 152.3 146 -6.2

Current OEM Developments

OEMs focused on VRLA or improved flooded

SOC difficult below 0C Voltage drop-out during start drop out 2 battery systems Current micro hybrid only 2-4% more efficient

Ideal battery solution

HIGHER CHARGE ACCEPTANCE 100+ Amps
More frequent start/stop Regenerative braking 10%-15% fuel efficiency improvement

Advanced Lead Acid Batteries for Tomorrows Demanding Energy Needs

Micro Hybrid Stop/Start Event

Recovery Charge Limited Sustained Charge 14.8 Voltage Limit 150 A Current Limit

Variable Time to Recovery 150 A (Depends on Battery) 100 A 50 A 20 A

22s

33s 66s
START 300 A; 1 s Discharge

165s

STOP 50 A; 60 s Discharge

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Advanced Lead Acid Batteries for Tomorrows Demanding Energy Needs

Micro Hybrid Test (mDCAT)

DKE Test EN-50342-6
[Deutsche Elektrotechnische Kommission] (German Electrotechnology Commission) Co-developed by Axion Technologies and BMW

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Advanced Lead Acid Batteries for Tomorrows Demanding Energy Needs

VRLA Micro Hybrid Test Results (mDCAT)

~10,000 cycles equivalent to one year driving y g

OEM target: 100-150A

Charge time increases rapidly Charge acceptance decreases rapidly

Advanced Lead Acid Batteries for Tomorrows Demanding Energy Needs

Lead Negative Charge Failure

Lead negative has

low charge efficiency

Polarization P l i ti Gassing (hydrogen)

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Advanced Lead Acid Batteries for Tomorrows Demanding Energy Needs

Lead Negative Charge Failure

PbSO4 must first

dissolve to provide Pb2+ (A)

50% SOC ( (Rest) ) Pb PbSO4

50% SOC ( (Charge) g ) ePb

( ) (B)

Pb2+ can then be th b Available

Pb2+ is

reduced to Pb (B)

Pb2+
(A)

Pb2+

rapidly limited during testing

SO42-

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Advanced Lead Acid Batteries for Tomorrows Demanding Energy Needs

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Advanced Lead Acid Batteries for Tomorrows Demanding Energy Needs

PbC Micro Hybrid Test Results (mDCAT)

Performance stable 40,000+ cycles

Constant 100A charge acceptance g p Constant ~35s charge time

Advanced Lead Acid Batteries for Tomorrows Demanding Energy Needs

Carbon Negative Charge Advantage

Carbon negative has

high charge efficiency

No Pola i ation Polarization No Gassing (hydrogen) NO SULFATION

Lead negative has

low charge efficiency

Polarization P l i ti Gassing (hydrogen) RAPID SULFATION

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Advanced Lead Acid Batteries for Tomorrows Demanding Energy Needs

VRLA vs. PbC Battery Efficiency

VRLA charge
efficiency d ffi i drops below 70% in only 8000 cycles y

PbC charge
efficiency above 80% and stable

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Advanced Lead Acid Batteries for Tomorrows Demanding Energy Needs

Axion Power Cube PEDA Project

Axion Power Cube Battery Energy Storage System b

Utility/industrial energy storage device Scalable up to 25 MW

Axion Plant 40 Power Cube

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Advanced Lead Acid Batteries for Tomorrows Demanding Energy Needs

Axion Power Cube PEDA Project

Applications l
Power quality Power arbitrage Outage protection Frequency regulation Voltage/transmission support Renewables integration/smoothing Community Energy Storage Residential Energy Systems

Axion Power Cube being commissioned onsite at the Clover facility Cube facility.
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Advanced Lead Acid Batteries for Tomorrows Demanding Energy Needs

Axion Power Cube PEDA Project

Axion Power Cube being commissioned Cube onsite at the Clover facility.
Custom Battery Racking

Eaton UPS System

Eaton UPS (open)

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Power Bypass and Switch Gear

Advanced Lead Acid Batteries for Tomorrows Demanding Energy Needs

Axion Power Cube Energy Storage

40 Axion Power Cube [PEDA Project]

10 Axion Mini Power Cube

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Advanced Lead Acid Batteries for Tomorrows Demanding Energy Needs

Axion Power Cube Energy Storage

40 Power electronics

20 PbC Hybrid Battery Modules

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Advanced Lead Acid Batteries for Tomorrows Demanding Energy Needs

Battery Assembly Equipment

Automated Plate Stacker equipment commissioned at Clover facility provides quality improvements for standard VRLA and PbC battery assembly.

Plate Stacker

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Advanced Lead Acid Batteries for Tomorrows Demanding Energy Needs

PbC Electrode Assembly Equipment

Automated Lug Caster For PbC Electrodes commissioned end of 2010.

Cutting Tinning Casting

Lug Caster g
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Advanced Lead Acid Batteries for Tomorrows Demanding Energy Needs

PbC Electrode Assembly Equipment

Automated PbC Electrode assembly equipment

AGM

Commissioned at Green Ridge Stacker facility Q1 2011

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Advanced Lead Acid Batteries for Tomorrows Demanding Energy Needs

Automated Paste Mixing

Cone Feeder
New Cone Feeder and Paste Mixer

Commissioned at Clover Facility in January 2011

Paste Mixer
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Advanced Lead Acid Batteries for Tomorrows Demanding Energy Needs

Fixed Orifice Pasting

New State of the Art Orifice Paster being commissioned at Clover facility January 2011.

AGM Stacker Fixed Orifice Paster

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Advanced Lead Acid Batteries for Tomorrows Demanding Energy Needs

Conclusions

Axion PbC Batteries

Higher (5-20x) h Hi h (5 20 ) charge acceptance Higher (4x) increase in cycle life 80-85% round trip energy efficiency

These unique properties make Axion PbC

batteries ideal for:
Hybrid Vehicle Market Hybrid Locomotive Market Larger Energy Storage Applications L E S A li i

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Advanced Lead Acid Batteries for Tomorrows Demanding Energy Needs

OTC BB: AXPW Advanced Lead-Carbon PbC Batteries

www.axionpower.com

Advanced Lead Acid Batteries for Tomorrows Demanding Energy Needs