Ilika Plc · LSE:IKA
Ilika — Investor Day (December 2019)
64 slides from Ilika's investor day presentation, Dec 5, 2019
Slide 1: Solid-state battery technology Capital Markets Day
Solid-state battery technology Capital Markets Day 5th December 2019
Slide 2: Disclaimer
Disclaimer The materials being provided to you in connection with this presentation are strictly confidential and intended only for informational purposes and convenient reference. This document has been prepared by Ilika plc (“Ilika”) and is the responsibility of the same and comprises the written
Slide 3: Business overview
Business overview Ilika is a pioneer in solid-state battery technology Page 3
Slide 4: Ilika history
Ilika history • 15 years in rapid materials innovation • Significant early work with Toyota • Created & launched mAh scale SSB technology • Now developing single cells and pouch cells for EV • Automotive Programme (Goliath) Auto industry partners & UK Government funded Page 4
Slide 5: Energy storage solutions
Energy storage solutions Conventional Supercapacitors Ilika Solid-State Li-ion Batteries Temperature range Trickle-charging/ Low Leakage Fast charging Ultra-compact Safety Profile Page 5
Slide 6: Stereax product evolution
Stereax ® product evolution Goliath Pouch cell Stereax ® Thin film bulk Stereax ® Solid electrolyte materials with Scale Toyota High throughput screening miniature commercial development Commercial Readiness Page 6
Slide 7: Stereax product to market mapping
Stereax ® product to market mapping Goliath M50 P180 M250 Key requirements Key requirements Non-flammable Key requirements Bio-compatibility High capacity Key requirements High operating Long life High energy density Long life (10 years) temperature Low leakage High power Integration Long life (10 y
Slide 8: Stereax commercial highlights
Stereax ® commercial highlights Delivering a perpetual beacon for high value asset tagging Developing a condition monitor for wind turbine blades Designing a rail-track strain gauge Designing an autonomous environmental sensor card Dispatching batteries for evaluation in miniature medical implants P
Slide 9: Stereax development partners
Stereax ® development partners Asset tagging Wind turbine condition monitoring Track monitoring Environmental monitoring Biomedical partner Powering medical implants Page 9
Slide 10: Stereax manufacturing partnerships
Stereax ® manufacturing partnerships M50 Capacity 2019 2020 2021 2022 (Devices/yr) 500 R&D 13,500 Ilika pilot line 312,000 UK manufacturing partnership 1 million+ Large scale Page 10
Slide 11: Ilika Business Model
Ilika Business Model Pilot Ilika as a LOGISTICS ILIKA Company B Company C ILIKA ILIKA ILIKA Battery ILIKA Wafer Dicing Thinning Stacking Forming Testing Customer Producer Fabrication PO & Contract Partnership Ilika as a LOGISTICS Company A Company B Company C Company D Company E Company F Supply Cha
Slide 12: Goliath project
Goliath project Ilika is developing the Goliath solid-state battery product line to address the growing demand for safe, high performance batteries for Electric Vehicles Page 12
Slide 13: Market needs
Market needs ilika ee = = > Cost Energy Density Power Density Safety e N65) BNW) SS r\\ Now $130/kWh (cell) Now 700Wh/I, S280/kWh (pack) AoW hile foal) Now 3 kW/k k 2035 eliminate thermal 2035 $50/kWh (cell) 2035 1400Wh/I, ow 8 (pack) runaway at pack level to \ $100/kWh (pack) ==) \ SO0Wh/kg (cell)
Slide 14: Battery technologies: size and weight
Battery technologies: size and weight Solid-State Batteries Wh/kg Source: Christophe Pillot - Avicenne Ilika Technologies Ltd © Page 14
Slide 15: Solid-state batteries
Solid-state batteries Conventional Lithium Ion Batteries All solid-state Advantages Batteries Safety Durability Fast charge / discharge Source: Toyota High energy density (Wh/L) High energy density (Wh/kg) Challenges Thermal stability Materials conductivity Simple construction Interface reactions an
Slide 16: Challenges facing SSB technology
Challenges facing SSB technology Source: University of Oxford and Faraday Institution Page 16
Slide 17: The solid-state battery technologies
The solid-state battery technologies Company Electrolytes Features Room temp operation (-50°C-150°C),excellent environmental adaptability, Ilika/Honda/McLaren Oxide-based scalable printing tech at low cost electrolyte Dyson / Sakti 3 Flash evaporation processing, custom equipment, cost appears high
Slide 18: Unit cost analysis (cost/kWh)
Unit cost analysis (cost/kWh) $400 Cost/kWh $350 Solid-state $300 Cost of SSB in 2025 will be similar to LiB $250 Cost/kWh Conventional $200 SSB dominates market in 2030 $150 $100 $50 $0 2016 2018 2020 2022 2024 2026 2028 2030 2032 The unit cost of SSB is around 30-40% higher than LiB in 2021 Cost e
Slide 19: What differentiates Ilika's Goliath programme?
What differentiates Ilika’s Goliath programme? Use of silicon as anode material Experiences gained from Stereax® SSB programme 10 years of materials innovation on solid electrolytes Extensive testing around sulphides and oxides Selection of oxides Development of specific oxides Flexibility to use be
Slide 20: Lessons from Stereax
Lessons from Stereax® How to deploy a silicon anode How to manage interface resistances Use of oxide electrolytes Formulation of composite structures Development of manufacturing processes Page 20
Slide 21: Pouch Design
Pouch Design Selected due to non flexible nature of the ceramics Single α cell Zoom on stack Multi-Cell Pouch Page 21
Slide 22: A6, 30Ah solid-state pouch cell
A6 , 30Ah solid-state pouch cell Ilika working with pack design experts to establish the optimum format for a solid-state pouch cell Pack design experts working to reduce the pack Wh/kg reduction factor based on the outputs of a solid-state pouch cell Page 22
Slide 23: Goliath development programme targets
Goliath development programme targets Increased α - Single Cell Electrode α - Multi-cell 1 Cell Prototype A 1.5 Ah Thickness Pouch 30 Ah 0.48 mm 2.5 Ah 18 g 0.58 mm Mechanical 5.0 mm e.g., A6 Sheet 26 g Stacking 270 g Format Using available NMC 111, 300 Wh/kg 350 Wh/kg 400 Wh/kg etc 725 Wh / L 1000
Slide 24: Ilika pre-pilot line facilities
Ilika pre-pilot line facilities 12/3/2019
Slide 25: Goliath Development Partnerships
Goliath Development Partnerships Goliath Development POWER DRIVE Programme: LINE • Establish Ilika as leader in development of MOSESS manufacturing methods for production of solid- state batteries GRANITE • Commercialise the large format solid- state battery Lead Partner Including (Goliath) Framewor
Slide 26: Goliath pre-pilot programme
Goliath pre-pilot programme Materials selection Facilities completed Set up facility and commence internal trials 1st α-cells produced >300 Wh/kg >400 Wh/kg Ilika Production of α and β cells 1kWh 1st β-cells demonstrator produced pack 1st β-cell Scale-up deliveries Options Partners Evaluation of β c
Slide 27: Goliath manufacturing scale-up
Goliath manufacturing scale-up The technology will be developed and manufactured in three phases 1000 Manufacturing (JV) Production Volume / kWh per Week Pilot (IUK) 10 Pilot (IUK) Operation Construction 1 Pre-Pilot (IUK) 2019 2020 2021 2022 2023 2024 Time Page 27
Slide 28: Financial summary for the half year ended 31st October 2019
Financial summary for the half year ended 31st October 2019 Revenue £1.5m (H1 2018: £1.0m) EBITDA loss £1m (H1 2018: £1.3m) Cash £1.9m with £0.7m received post period end. Page 28
Slide 29: Stereax Business Growth Profile
Stereax® Business Growth Profile Large fab: model 2 Medium fab: model 1 costs Pilot production 2020 2030 Confidential 29
Slide 30: Goliath Business Growth Profile
Goliath Business Growth Profile Consumer cells: model 2 costs Pre-Pilot production: model 1 Grants 2020 2030 Confidential 30
Slide 31: Summary
Summary Solid-state batteries will be a significantly disrupting technology Investors have been taking positions in the technology via investment in SME’s Ilika offers a lower risk investment proposition because of: Its demonstrated ability to make miniature solid-state batteries Its capital light c
Slide 32: Contact details
Contact details www.ilika.com @ilikaplc /ilika-plc Page 32
Slide 33: Battery technology: battery costs and technology
Insert sector image Battery technology Battery costs and technology Asad Farid Chris Armstrong Analyst Specialist Sales +44 20 3207 7932 +44 20 3207 7809 asad.farid@berenberg.com chris.armstrong@berenberg.co m
Slide 34: Battery technology – drivers and implications
Battery technology – drivers and implications 3 factors driving battery adoption Multiple sectors headed towards electrification Automotive Regulations for emissions control Direct/indirect financial support for EVs, charging infrastructure & stationary storage Stationary storage Electric buses Risi
Slide 35: Battery technology – drivers and implications
Battery technology – drivers and implications Sectors which will benefit Sectors which may be disrupted 1. Lithium and Nickel miners 7. Battery manufacturers moving into VPP 1. Auto OEMs lacking EV technology Albemarle Tesla Toyota AMG, Lithium Americas Sonnen Peugeot SQM, FMC SMA Fiat Orocobre BYD
Slide 36: Battery costs fell sharply in 2018
Battery costs fell sharply in 2018 Battery costs declined sharply in 2018 • In 2018 lithium ion battery costs declined sharply by only 24%. 350 $293/kWh -19% • Cell costs fell by ~29% -13% 300 $238/kWh $/kWh 250 56 $206/kWh -24% • Why? 57 $157/kWh 200 • Reason #1: Rapid decline in raw material price
Slide 37: Is linear cost reduction sustainable? Not really
Is linear cost reduction sustainable? Not really Cell manufacturers currently selling cells below/at cost. Rising consolidation • Three risks in our view could emerge which could result in in cell manufacturing and plant utilization rates could raise margins battery cost bottoming our higher than ex
Slide 38: Cost Risk #1: Cobalt price increase is a major risk
Cost Risk #1: Cobalt price increase is a major risk • Sector #2: Cobalt miners/recyclers – Umicore, Glencore Over the next 10 years, we expect global demand to rise by more than 3 fold to 307kT • Cobalt spot price is down by 63% from its peak at start of Personal mobility vehicles kT 2018. Our “coba
Slide 39: Cobalt will not disappear from lithium ion batteries
Cobalt will not disappear from lithium ion batteries • Reason #3: NMC and cobalt demand will rise from We expect global NMC cathode market to grow from $2bn in 2018 to $16bn by 2023 electric buses and other end markets 80 US$ bn 70 LCO • NMC market growth will be supported by: 60 22 NMC 811/eLNO 1.
Slide 40: Cost risk #2: Nickel has now peaked
Cost risk #2: Nickel has now peaked and will likely remain at current levels • Nickel market has been in structural deficit since 2016 and We project class 1 nickel demand from batteries to rise from 32kT in 2018 to inventories have been declining. 288kT by 2023 and more than 1mn tonnes by 2028 • De
Slide 41: Cost Risk #3: Lithium – price has now bottomed
Cost Risk #3: Lithium – price has now bottomed • Electrification commercial end market can add 78kT to Capacity utilization rate for the sector to drop further and on average remain the global demand for lithium by 2023 and 194kT by below 60% over the next 5 years. We expect price erosion especially
Slide 42: Cost Risk #4: Pricing power will go to the cell makers
Cost Risk #4: Pricing power will go to the cell makers – a key risk to battery cost reduction • Sector #5: Large cell manufacturers – CATL, LG Chem We expect the top 7 players in the market to control 80% of the global cell market by 2023 • We strongly expect cell manufacturing to gain pricing 100%
Slide 43: Cost Risk #5: Shift to fluorinated electrolytes
Cost Risk #5: No Moor’s law here. Shift to fluorinated electrolytes will improve energy density but will add to battery costs Electrolyte Solvay’s fluorinated electrolytes use high-nickel NMC-based lithium-ion • Traditional electrolyte degrades with high nickel and cells to operate at high voltages
Slide 44: Solid-state batteries based on lithium ion will be horrendously expensive
Solid-state batteries based on lithium ion will be horrendously expensive. Silicon could be a solution Alternative anode materials, lithium metal and silicon hold the most promise for increase energy density and EV range Anode • Shift to lithium metal anode in mainstream EVs unlikely to occur • Sili
Slide 45: Disclaimers
Disclaimers Publication date: 3 December, 2019 Please note: This document has been prepared by Equity Research Analysts of Joh. Berenberg, Gossler & Co. KG (hereinafter referred to as the “Bank”) and opinions contained in this presentation represent those of the Bank’s Research Department at the sta
Slide 46: Disclaimers
Disclaimers The following internet link provides further remarks on our financial analyses: Berenberg Research Legal disclaimer The information given can become incorrect due to passage of time and/or as a result of legal, political, economic or other changes. We do not assume responsibility to indi
Slide 47: Disclaimers
Disclaimers Remarks regarding foreign investors The preparation of this document is subject to regulation by German law. The distribution of this document in other jurisdictions may be restricted by law, and persons into whose possession this document comes should inform themselves about, and observ
Slide 48: Contacts - Research
Contacts - Research JOH. BERENBERG, GOSSLER & CO. KG Internet www.berenberg.com E-mail: firstname.lastname@berenberg.com EQUITY RESEARCH GENERAL MID CAP MID CAP - DACH BUSINESS SERVICES, LEISURE& TRANSPORT ENERGY (cont'd) MATERIALS Carl-Oscar Bredengen +44 20 3753 3160 BUSINESS SERVICES UTILITIES CH
Slide 49: Contacts - Sales
Contacts - Sales EQUITY SALES SPECIALIST SALES SALES (cont'd) SALES (cont'd) AEROSPACE& DEFENCE& CAPITAL GOODS FRANCE UK (cont'd) CORPORATEACCESS Cara Luciano +44 20 3753 3146 Alexandre Chevassus +33 15844 9512 Mark Sheridan +44 20 3207 7802 Lindsay Arnold +44 20 3207 7821 AUTOS, CHEMICALS & TECHNOL
Slide 50: Contacts - BCM
Contacts - BCM BERENBERGCAPITAL MARKETS LLC Member FINRA & SIPC Internet www.berenberg-us.com E-mail: firstname.lastname@berenberg-us.com EQUITY RESEARCH EQUITY SALES CONSTRUCTION CAPITAL GOODS SALES Robert Muir +1646 949 9028 Andrew Buscaglia +1646 949 9040 David Alonso +1415 802 2523 CORPORATEACCE
Slide 51: Alpha, thought leadership, access, service
ALPHA ¢ THOUGHT LEADERSHIP e ACCESS e SERVICE cy PARTNERSHIP SINCE 1590
Slide 52: The EV battery roadmap
The EV battery roadmap December 2019 Adam Collins Research +44 (0) 20 3100 2075 adam.collins@liberum.com Ropemaker Place, 25 Ropemaker Street, London EC2Y 9LY / T: +44 (0)20 3100 2000 www.liberum.com Liberum Capital Limited is authorised and regulated by the Financial Conduct Authority. Registered i
Slide 53: The competition
The EV battery roadmap The competition Perfected over 100 years of mass production UK’s top selling Ford Focus petrol car Fuel economy Range Fuelling time Price WLTP: 50mpg, ~500 miles, <2 minutes From £20,000 6L/100km. 800km 53
Slide 54: The EV starting point
The EV battery roadmap The EV starting point 2008 reva G-Wiz 2011 Nissan Leaf • Best selling electric car in world 2008. 1,000 • Best selling UK ‘pure electric’ car 2012. on UK roads 2009 MSRP £29,000 • Eight 6v lead acid batteries. Upgraded to • 24KWh L-ion (LMO) battery costing $20,000 15KWh Li-io
Slide 55: What the auto industry needs
The EV battery roadmap What the auto industry needs Acceptable range, cost and charging times with similar safety and longevity to ICE’s A profitable fully electric Golf segment car priced at a small premium to todays ICE cars 1 i.e. £20k-£25k Battery specs: range >300 miles, preferably 500. Battery
Slide 56: Battery assembly costs will benefit from giga investments
The EV battery roadmap Battery assembly costs will benefit from giga investments Producer Location Status Capacity GWh Timing Source CATL China Greenfield 37-42 2020 Financial Times, 2017 Tesla Shanghai, China Greenfield 35 2020-2025 Electrek.co, 2017 LG Nanjing, China Greenfield 32 2019 Koreajoonga
Slide 57: Innovations in cell materials
The EV battery roadmap Innovations in cell materials Current 2020 2025 2030 Gravimetric Energy 210 230 330 500 Density (Wh/kg) Volumetric energy 530 600 830 1000 density (Wh/l) Cost ($/kWh) 230 150 150 150 Main technology 80 – 90% Ni Silicon doped Solid driver cathodes anodes electrolyte 600 Practic
Slide 58: Higher nickel cathodes
The EV battery roadmap Higher nickel cathodes • The current EV cathode materials of choice are multi-layered transition metal oxides – Lithium NMC or NCA • First generation NMC is 333 (30% each of nickel, manganese and cobalt +10% lithium). Latest generation NMC is >50% nickel. Future generation NMC
Slide 59: The bumpy road to high nickel NMC
The EV battery roadmap The bumpy road to high nickel NMC Cost trade-offs: Lithium The transition to high nickel hydroxide better than Lithium NCA or NMC involves some carbonate for high nickel NMC Performance trade-offs: but higher cost. Costlier, cost and performance trade- Poorer cycle life enhanc
Slide 60: Silicon doped anodes
The EV battery roadmap Silicon doped anodes • The single largest improvement in EV battery energy density through 2025 is likely to come from the doping of graphite anodes with silicon. Silicon has a specific capacity c.10x that of graphite and we expect 5-10% silicon doped anodes to be in widesprea
Slide 61: Pure lithium anodes
The EV battery roadmap Pure lithium anodes Lithium metal anodes also offer 10x the specific capacity of graphite and are the preferred anode materials for some solid-state batteries under development The principal development challenge with lithium metal anodes relates to the interaction of reactive
Slide 62: Solid-state batteries
The EV battery roadmap Solid-state batteries • Solid-state batteries have a solid electrolyte rather than solvent liquid electrolyte. Absent a flammable solvent electrolyte, they are less vulnerable to combustion. Energy density promises to be higher thanks to the absence of the separator, less cell
Slide 63: What else is out there?
The EV battery roadmap What else is out there? A couple of other battery technologies have attracted research interest but are not serious contenders for EVs Lithium sulfur and near relations Na-s and Mg-s Lithium air Batteries have a high capacity lithium anode and a porous carbon Have sulfur catho
Slide 64: Disclaimer
Title of presentation Disclaimer This material is the commercial property of Liberum and may not be disclosed or distributed to any third party without the express permission of Liberum. You shall not remove or modify any disclaimer or copyright or trademark notice contained in any Material. If you