Accelerating the Electrification of U.S.
Drive Trains: Ready and Affordable
Technology Solutions for Domestically
Manufactured Advanced Batteries
Larry Atkins
Exide Technologies
June 7, 2010
Project ID #
ARRAVT004
This presentation does not contain any proprietary, confidential, or otherwise restricted information
2
• Begin Negotiation - Aug 2009
• Start Project - Dec 2009
• Project Finish - Dec 2012
• Percent complete - 12%
(effective Mar 2010)
• Advanced Battery Production Capacity -
(Domestic) to Enable Advanced Vehicles
– Improved Energy Efficiency
– Reduced Dependence on Foreign Oil
– Reduction in Greenhouse Gasses
– Enhancing National Security
• ARRA Targets
– Stimulate Economy
– Increase Domestic Employment
• Total project budget - $69.9M
– DOE share - $34.3M (49%)
– Exide share - $35.7M (51%)
• Funding received in FY09 = $0
• Funding Plan for FY10 = $15.3M
FY11 = $16.1M
FY12 &13 = $ 2.9M
Timeline
Budget
Barriers & Targets
• No Project Partnerships
• Exide Share – Internally Funded
• Customer Support
• 17 Commitment/Support Letters
• Material Vendor Support
• Strategic Supply Agreements
Partners
Overview
3
Project Objectives DOE Merit Review - 2010
This project covers the expansion of Exide Technologies’
manufacturing capacity for producing advanced batteries in
existing U.S.-based battery plants
– The project plan is to implement a combined increase in yearly
production capacity of 1.5 million additional units at two of Exide’s
current manufacturing locations
• Columbus, Georgia
• Bristol, Tennessee
– These advanced battery technologies are targeted to have an
accelerated near-term impact (in high volume) for micro-hybrid
vehicles, idle reduction commercial vehicles, and other strategic
market segments
4
Project Objectives DOE Merit Review - 2010
This manufacturing expansion project involves two of Exide’s
global technologies: a Spiral Wound Absorbed Glass Mat
(AGM) design and a Flat Plate AGM design, both of which will
be manufactured with advanced carbon technology as
required by customer specific advanced vehicle applications –
Spiral Wound Example
Flat Plate Example
5
Project Objectives DOE Merit Review - 2010
The Exide Advanced Battery Expansion Project Addresses Key
Program Targets - ARRA and VT Program
– $70M in direct economic activity in two domestic locations over the 3 year
scope of the project
– 320 manufacturing jobs in areas hit hard by the economic downturn
• 200 jobs in Columbus GA
• 120 jobs in Bristol TN
– When installed in vehicles incorporating energy management
technologies, these advanced batteries enable a savings potential of
• 75 million gallons of fuel per year more than $200M at the pump
• 3 million barrels reduction of imported oil per year
• 600,000 metric tons of CO
2
per year in reduced emissions
6
Project Milestones DOE Merit Review - 2010
• FY09
– ARRA Award Announced – Aug 09
– Negotiation Period – no project activity allowed
• FY10 – Progress
– DOE Agreement Finalized – Dec 09
• 10% spending cap pending NEPA CA
– DCAA Audit Report Accepted – Mar 10
– Go/No-Go NEPA CA (FONSI) – Mar 10
• Full approval achieved / spending cap removed
7
Approach /Strategy DOE Merit Review - 2010
This project is being carried out in four
major project phases at each location
over the 3-year life of the project
– Project Phases
1) Design Project and Arrange Funding
2) Procurement & Installation
3) Shakedown & Qualification
4) Production Ramp-up & Market Deployment
8
Approach /Strategy DOE Merit Review - 2010
The project deployment plan - key items
− Project Task Areas
1) Pre-Agreement Planning
a) Prepare documents for NEPA EA
b) Preliminary product engineering planning
c) Order long lead time equipment
2) Project Management and Planning
a) Product design and planning
b) Order remaining equipment
c) Environmental Permitting
d) Receive, Install and Debug Equipment
e) Deliver to the DOE of 100 batteries manufactured from each
completed manufacturing facility from low rate initial production
for validation purposes
3) Production Scale-up including Hiring and Training of New
Manufacturing Employees
4) Achieve Production and Product Performance Targets
9
Accomplishments DOE Merit Review - 2010
The Exide Battery Expansion Project was only
Recently Fully Approved and has Now Begun the
Full Implementation Phase
– Successful DOE negotiation period to achieve
Cooperative Agreement (Aug ’09 – Dec ’10)
– Successful NEPA Environmental Assessment (EA)
resulting in Finding of No Significant Impact (FONSI) for
both project sites (Sep ’09 – Mar ’10)
– Successful DCAA Audit report regarding financial
systems and controls (Sep ’09 – Mar ’10)
10
Accomplishments DOE Merit Review - 2010
Project Management
– A formal organization has been implemented
• High-level Steering Committee was formed with corporate
officer leadership and direction
– Periodic meeting schedule - established & on track
• Functional teams were formed with experienced leaders
11
Accomplishments DOE Merit Review - 2010
Project Management Structure
• Implementation team established
• System software decisions and upgrades
• Special refresher training completed
– PMBOK Principles
– Common deployment across project sites
• DOE EVM spreadsheet
– Verified conformance
– Training for key team members
12
Accomplishments DOE Merit Review - 2010
Project Deployment
– Columbus GA Site ~ Flat Plate AGM
• Full time Project Manager hired to run project
• Weekly Columbus Update meetings
– cross functional team members
– executive staff from commercial divisions
• Weekly Columbus team meetings
– Focused local task assignments and reviews
• Major equipment/process technical reviews
– Ongoing and structured to achieve needs
13
Accomplishments DOE Merit Review - 2010
Project Deployment
– Columbus GA Site ~ Flat Plate AGM
• Critical Path Equipment on track
– Specification and procurement planning
–
Layout decisions and implementation schedule
14
Accomplishments DOE Merit Review - 2010
Project Deployment
– Bristol TN Site ~ Spiral Wound AGM
• Full time Project Manager hired to run project
• Weekly Bristol Implementation meetings
– Cross functional team members
– Focused local task assignments and reviews
• Major equipment/process technical reviews
– Ongoing and structured to achieve needs
• Engineering planning has commenced with focus on
details of plant layout options, equipment
specification and production estimates
15
Accomplishments DOE Merit Review - 2010
Project Deployment
– Bristol TN Site ~ Spiral Wound AGM
• Environmental modeling activities underway to allow
required permitting according to work plan
• Equipment procurement activities on track
– Vendor visits, quoting and contract negotiations
• Product Engineering on target plan
– Finalized definition of full product line by SKU
• There has been no slippage in projected timing from the
date of the CA, no changes that would impact either the
scope or cost of the project, and no foreseen problems
that would prevent a successful completion of the project
16
Collaboration DOE Merit Review - 2010
• The Exide Advanced Battery Capacity Expansion
Project Does Not Involve Direct Project Partners
– Internally Managed Manufacturing Capacity Expansion
– Company share internally funded
• Customer Commitments/Agreements
– Proprietary listing of 17 supporting agreements with world-class
Automotive / Truck / Military OEMs; as well as, associated Industrial
products customers
• Material Vendor Agreements and Support
– Strategic supplier agreement with Axion Power International, Inc., a
developer of advanced batteries and components that incorporate
patented lead carbon battery PbC Technology
TM
– Support from all material and supply vendors within the required time
frame to meet full production capacity goals
17
Upcoming Work DOE Merit Review - 2010
Major Progress Planned During FY10 & FY11
− Both sites scheduled for heavy front loaded spending
for major equipment during period
• ~44% of total project spending in FY10
• ~47% of total project spending in FY11
− Production line sites will be readied in FY10 for
equipment installation in FY10 & FY11
• Certain key items will be early and implemented
− Hiring will continue but will lag rate of spending due
many long lead times on substantial list of capital items
18
Summary DOE Merit Review - 2010
Exide’s Battery Expansion Project
– Relevance - Ready and affordable technology solutions for domestically manufactured
advanced batteries / accelerating the electrification of U.S. drive trains. Helps achieve
domestic targeted goals for economic growth and employment, while enabling advanced
vehicles that will reduce dependence on foreign oil, reduce emissions, and reduce green
house gasses – all enhancing our national security.
– Approach/Strategy – Project management planning and system implemented for structured
earned value management approach. Four project phases administered at two production
sites with centralized direction and local deployment teams. Task planning structured and
planned to achieve project objectives.
– Accomplishments – Cooperative Agreement negotiation completed Dec ’09 and final
requirements removing spending lid achieved Mar ’10. Project sites active with project teams
and activities progressing according to plan. There has been no slippage in projected timing
from the date of the CA, no changes that would impact either the scope or cost of the project,
and no foreseen problems that would prevent a successful completion of the project.
– Collaboration – Exide’s project does not include partner relationships. The company share of
the funding is supplied fully from internal sources. Key customer relationships and strategic
vendor support agreements will enable commercialization plan.
• Upcoming Work – Accelerating deployment activities are planned for FY10 and FY11 with
over 90% of the total project spending during that period. Long lead time on major capital
equipment will cause employment numbers to proceed, but will lag spending.
