AML

Company OverviewElectrical Machine Development

PM-WireTM - A New, Large and Sustainable American Industry

December 2019

E300938 ©2019 Advanced Magnet Lab, Inc. All rights reserved worldwide.

Reimagining the Magnet Technology that Drives the World

AML Product development company supplying magnet solutions for startups, Fortune 100 and Global 2000 companies

AML’s customers are the road-to-market for end product Revenue includes design contracts, prototyping & grantsRecurring revenue from licensing and manufacturing

AML focuses on what AML does best, MagnetsThe “enabler”, the “magnets Inside” (i.e. BASF, Intel)

AML technology includes software and hardwareThe most advanced existing and clearly differentiatedSignificantly improves performance at a lower cost

AML’s market experience is diverse – Our growth plan is focused!Bringing to market unprecedented performance and economics for electric propulsion

ü PM-WireTM – Breakthrough technology for manufacturing of permanent magnetsü PM-360TM – Unprecedented performance and economics for motors and generators

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Our Company

AML’s Technology PlatformProprietary software, magnet &

manufacturing technologies

EV UAV eVTOL Aircraft Ships MedicalWind EnergyMining Consumer

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Diverse Sector Experience

Oil Exploration

Oil & Gas

Chilean Joint VentureMining & Environment

Mining & Minerals

Wind Turbine Generators

Power Generation

Cancer Treatment

Heart Disease

Medical

Rapid Deployment for Oil Spill Containment

Water & Environment

Superconducting Accelerators

Research

Radiation Shielding

Space

Permanent Magnet Manufacturing

Manufacturing

Electric Propulsion

Transportation

Motor & Generators

Energy Use

ELECTRICAL MACHINES

Transportation is Going All Electric or Hybrid-Electric

Replacing Engines with Electric Motors

Motors are Driven by Magnets

Transportation is Driven by Magnets

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E-mobility - The electrification of transportation

Motor

Magnets are the beating heart of e-mobility

Revenue is generated through design contracts, building prototypes, licensing and manufacturingü AML focuses on what AML does best – Magnets ü AML sells direct to customerü AML’s overhead is minimal. Business scales with applications engineering, not manufacturingü AML contract manufactures or joint ventures for high-rate manufacturing

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Scalable Business Model

Customer

Customer Acquisition Sales

ApplicationsEngineering

Prototypes &Low-Rate Mfg.

High-Rate ManufacturingJoint Venture or

Contract Mfg.

Solution Requirements

AML Engineered SolutionMOEMTM – CoilCADTM – Magnet Technology

AML Low Rate ManufacturingCNC & 3D Printing

PM-360TM

Rotor Magnet

Electric Motors

Intellectual PropertyComprehensive - enabling software, magnet and manufacturing technologiesUS/Intl. Patents – 28 Granted, 22 in process (12/2018)

Software – Proprietary and Enablingü Coil-CAD™ Design & Manufacturing ü MOEM™ Electrical Machine Modeling Software

Revolutionary magnet technologiesü Perfect-Field MagnetsTM

ü PM-WireTM & PM-360 Permanent MagnetsTM

ü Proprietary manufacturing processes

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Our Differentiation - IP

AML Patents

CoilCADTM

Proprietary magnet design software

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Intersections with YZ-Plane(s) -- Max Longitudinal Force = 0.10 [Newton/cm] --

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MOEMTM

Proprietary electrical machine design softwareAML Magnet Technologies

Unprecedented capabilities and performance

AML’s Technology PlatformWe are differentiating with unique capabilities and unprecedented technical advances in the application of magnetics

AML is the world’s best at optimizing magnetic applications!

Competitors like GE, Siemens, and ABB utilize conventional magnet technologies which fundamentally have not changed since first invented in the late 1800s

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Our Differentiation – Electromagnets

AML’s Perfect-Field™ Application Development Process & Magnet Technologies

Nikola Tesla’s Induction MotorCirca 1883

Competitors Technology19th Century

AML “Perfect-Field Magnets” provide the “highest field quality” availableDisrupts the mainstay solution, Helmholtz Magnets

ü Up to 40X improved magnetic field qualityü > 200% increase in magnetic fieldü > 50% less footprintü > 40% less powerü 1, 2 and 3-axis solutionsü Equivalent Cost

Marketsü Electrical Machinesü Quantum Computing ü Medical ü Research ü Manufacturing

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Our Differentiation – Electromagnets

Perfect-FieldTM Development ProcessProprietary software, magnet & manufacturing technologies

Helmholtz MagnetsMainstay solution since the 1800s

Hermann von Helmholtz (1821-1894)German scientist and philosopher who

made fundamental contributions to physiology, optics, electrodynamics,

mathematics, and metrology

“Good Field Region”Small Spherical Area1% Field Variation

B ~ 2 Gauss (4 times Earth Magnetic Field)Field Variation in Good Field Region: 1 %

Field Variation in “Good Field Region”: less than 0.001 % B ~ 50 Gauss (100 times earth magnetic field)

Double-HelixTM CCT – Continuous Cosine ThetaSaddle Coils

CCT with Shape Shimming

A new permanent magnet (PM) technology, named PM-Wire™Reduces the cost, increases the reliability and enables new applications

Process allows highly automated, safe, mass-produced PM components, including complex and “wire like”, shape forms

Benefits of PM-Wire™ü Greater Performance – precise magnetization / magnetic flux directionü Consistent & Higher Quality – precisely controlled and automated manufacturingü Flexibility - unrestrained shapes & sizesü Increase Structural Integrity – high RPM motors/generatorsü Enables Cooling – jacket seals and protects PM materials from cooling mediaü Higher Reliability – more robust PM components and PM assembliesü Easier and Safer – simplified manufacturing of PM based productsü Lower Cost Manufacturing – mass produced, in process forming of cross-section, long length pieces and

increases PM material yield (10%-30%)

PM-360TM – Enabled by PM-WireTM

A configuration PM-WireTM which significantly improves the performanceand lowers the cost of motors, generators, magnetic gearboxes, magnetic bearings, levitation, manufacturing and more

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Our Differentiation – Permanent Magnets

AML’s PM-Wire™ & PM-360TM

Manufacturing Process

PM-360TM vs. Conventional

PM-360TM - Wins!ü Highest usable field in the gap between motor rotor and statorü Single-Magnet with the optimum magnetizationü Eliminates the need for iron (weight)ü Increased efficiency, higher torque, less vibrationü Intrinsic containment of centrifugal forces in high RPM machinesü All, at a significantly lower cost

Conventional ü North-South Magnetization - 50% of field is unusedü Requires 100s of individual magnets ü Requires Iron / Steelü Requires containment of centrifugal forcesü High cost to produce and assemble

PM-360TM

~57% Field Increase

N S

Conventional N-S Pole Magnetization

MOEMTM + Perfect FieldTM + PM-WireTM = Best Electrical Motors

1. MOEM™ - Multi-Objective Electrical Machine Softwareü Complete design exploration to determine the optimum motor or generator configuration

2. CoilCADTM - Perfect-Field™ Statorsü AML’s CoilCAD™ software and magnet technologies provides the optimized design and

manufacturing of stators and magnetization of PM-Wire™

3. PM-360™ Rotorsü Enabled by PM-WireTM, PM-360TM provides the optimized permanent magnet rotors

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AML Differentiation - Enabling IP for optimized propulsion motors

Customer RequirementsPropulsion Motors

MOEMTM

Optimized Machine Configuration

MOEM™

CoilCAD™ - Perfect Field CoilsOptimized Stator Design & PM-360TM Magnetization

AML PropulsionOptimized Rotors & Stators

Video

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PM-WireTM - Enabling better magnet-based products

~57% Field Increase

Manufacturing PM ProductProcessingMining Rare Earth Materials

End ProductsMotors and Generators Magnetic GearboxesMagnetic SeparationBeam lines, NMR, MRIManufacturing, Assembly EquipmentCell phones, iPads, Data Security

Value PropositionSignificantly improve performance

ü ~10% to ~50%

Market SizeMotors – $200B / 2025PM-360TM – $25B/2018 - $46B / 2025

Market SectorsE-Mobility – Auto, Aero, Marine, RailWind EnergyOil& Gas, MiningIndustrial

ManufacturingHigh QualityHigh YieldHigher PerformanceHighly AutomatedHigh Throughput

EV UAV eVTOL Aircraft Ships MedicalWind EnergyMining Consumer

Existing Drone MotorsPlug-and-play. No Change to motor design

ü ~10% Torque IncreaseDesign Change to Stator

ü ~30% Torque IncreaseLower cost

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Performance Improvement Examples

Conventional

New Motor DesignPM-360TM Dual Rotor Configuration

ü 30% Plus Improved Performance

Specifications1000 Nm @ 2500 RPM (261 kW)Liquid cooledMaximum frequency 1200 Hz400 V line voltageOD < 420 mm

PerformanceOD=0.415 m / L=0.12 m95.3 % efficiency @ 261 kW25.5 kg active mass (< 30 total mass)

Specific torque > 33 Nm/kgSpecific power > 8.7 kW/kg

Final materials selection, mechanical and cooling design and prototype demonstration will impact the final performance characteristics

Electric Vehicles MotorsPM-360TM Dual Rotor Configuration

ü 30% to ~50% Improved Performance

U.S. Department of Energy Goals125kW / 20,000 RPM motor (BMW i3 Baseling Example)

ü 8X Power Density Improvement§ Today, AML can achieve > 30 kW/L @ 98% efficiency with air cooling§ Today, AML can acheive > 40 kW/L @ 98% efficiency with liquid cooling

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Performance Improvement Examples

Optimizing magnet-based products and solutions

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AML Today - Transforming industries and companies

Development Partners

History of Successful Execution

e-MobilityDevelopment Programs

On-BoardingPrograms

Perfect-Field Magnets

Global Power Tool Companies

E-Mobility

Consumer

Drone / UAV / Aircraft

PM-WireTM

Sky Way Systems Development CompanyGlobal Motor ManufacturesEV and Aircraft Manufacturers

U.S. ArmyCommercial Drone CompaniesConsumer Drone Companies

eVTOLsPropulsion

Turbo-Electric Propulsion

U.S. Defense CompaniesU.S. Mining CompaniesU.S. Department of DefenseGlobal 2000 Heavy Industries Company

Drone Motors

Quantum Computing

Research

Medical

Electrical Machine DevelopmentDesign and optimization of motors and generators

Reimagining the Magnet Technology that Drives the World

E-Propulsion Requirements1000 Nm @ 2500 RPM (261 kW)Liquid cooledMaximum frequency 1200 Hz400 V line voltageDual rotor ironless configuration

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Example – AML vs. World Record

3-phase air-core concentrated stator winding with direct cooling

Outer PM-360TM rotor

Inner PM-360TM rotor

Example of a dual-rotor motor configuration

Magnetic Flux Density Distribution

Specific power > 5 kW/kg

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Optimizing Electric Machines

Machine specificationsPowerRPM

Voltage

Design parametersRiP

HA thicknessHAratio

NbTurns/phasehStatorStator ff

Stator gapAir gap

Heat transfer coefficients

Design constraintsMax velocity

Max temperatureVariables bounds

Material propertiesPermeability

Thermal conductivityElectrical conductivityMechanical strength

MOEM™

Machine configurationType of analysis

Design Space Exploration

Partially funded and developed for NASA

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Analysis-Led Design– Parameter Selection and Trade-offs

Low Mass Designs

High Efficiency Designs In-Between Designs

Selected design for further optimizationüOD=0.415 m

ü L=0.12 mü 95.3 % efficiency @ 261 kWü 25.5 kg active mass (< 30 total mass)

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Design Trends and Example

ü > 33 Nm/kgü 95.3 % efficiency @ 261 kW

ü 140 C Stator nominal temperature with 9 L/min water flow @ 50 C

ü > 200 % overloading capability continuous

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Design Trends and Example

Genetic AlgorithmsNarrows the search for the best design

WITH WITHOUT

Parameter Value

Nominal Power 260 kW

Nominal Torque 1000 N.m

Nominal Efficiency ~ 95 %

OD 0.41 m

Length 0.13 m

Estimated mass ~30 kg

Specific Torque > 33 Nm/kg

Specific Power > 8.5 kW/kg

Cooling Liquid cooled

Peak temperature (stator at nominal operation)

140 C

Rotor containment thickness (assuming carbon fiber composite)

Inner rotor – ~ 1 mmOuter rotor - ~ 2 mm

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Example of Motor Parameters

Geometry (Active Components) Magnitude of B, B vector and Current Density Distribution

Magnitude of B and B vector

30% Plus ImprovementSpecific power > 8.7 kW/kgSpecific torque > 33 Nm/kg

PM-WireTM & PM-360TMSignificantly improves the performance and lowers the cost

of permanent magnet based products

Reimagining the Magnet Technology that Drives the World

Today, it is mostly China

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Building a strategic supply chain in the U.S.

Rare Earth MaterialsNdPr

End-ProductsRE Oxide Production

Cracking and Solvent Extraction

End-Use Applications

China Produces 90+% Permanent Magnets

Magnet Production

Physical SeparationMining

Rare Earth Supply

Magnets

Mineral Concentrate Ready to Ship from the U.S. to China

Cancer, Lung DiseaseEntire Villagees are Destroyed

RE Metal and Alloy Production

Strip CastingCorse Crushing

Hydrogen DecrepitationJet Miling

Magnet Powders

Metal Alloys

Laborious, low-yield, low-quality, limited in size, limited in performance optimizationProduced mostly in China and Malaysia

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Today – Magnet manufacturing is archaic

ProcessingMining Rare Earth Materials

A new permanent magnet (PM) technology, named PM-Wire™Reduces the cost, increases the reliability and enables new applications

Process allows highly automated, safe, mass-produced PM components, including complex and “wire like”, shape forms

Benefits of PM-Wire™ü Greater Performance – precise magnetization / magnetic flux directionü Consistent & Higher Quality – precisely controlled and automated manufacturingü Flexibility - unrestrained shapes & sizesü Increase Structural Integrity – high RPM motors/generatorsü Enables Cooling – jacket seals and protects PM materials from cooling mediaü Higher Reliability – more robust PM components and PM assembliesü Easier and Safer – simplified manufacturing of PM based productsü Lower Cost Manufacturing – mass produced, in process forming of cross-section, long length pieces and

increases PM material yield (10%-30%)

PM-360TM – Enabled by PM-WireTM

A configuration PM-WireTM which significantly improves the performanceand lowers the cost of motors, generators, magnetic gearboxes, magnetic bearings, levitation, manufacturing and more

30

Introducing PM-WireTM

AML’s PM-Wire™ & PM-360TM

Manufacturing Process

31

PM-WireTM - Enabling better magnet-based products

~57% Field Increase

Manufacturing PM ProductProcessingMining Rare Earth Materials

End ProductsMotors and Generators Magnetic GearboxesMagnetic SeparationBeam lines, NMR, MRIManufacturing, Assembly EquipmentCell phones, iPads, Data Security

Value PropositionSignificantly improve performance

ü ~10% to ~50%

Market SizeMotors – $200B / 2025PM-360TM – $25B/2018 - $46B / 2025

Market SectorsE-Mobility – Auto, Aero, Marine, RailWind EnergyOil& Gas, MiningIndustrial

ManufacturingHigh QualityHigh YieldHigher PerformanceHighly AutomatedHigh Throughput

EV UAV eVTOL Aircraft Ships MedicalWind EnergyMining Consumer

32

PM-WireTM – Stage of Development

Phase 1 – Complete - AML validated the process using Isotropic (bonded) Phase 2 – Complete November 2019 - Validating the Phase 1 process for Anisotropic Sintered Powder

Phase 3 – Complete 2020 - Following Step 2, AML will validate Anisotropic Sintered

Isotropic PowderBonding Agent

No Sintering

AnisotropicNo Bonding Agent

Sintering

Br (T)Flux Density

Magnetic FieldNdFeB

Anisotropic PowderNo Bonding Agent

No Sintering

MQA-36/37/38

Phase 1 Phase 2 Phase 3

AML Market

Tomorrow, in the U.S.

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Building a strategic supply chain in the U.S.

Physical SeparationMining

Rare Earth Supply

Mineral Concentrate Ready to Ship to the U.S.

Rare Earth MaterialsNdPr

RE Oxide Production

Cracking and Solvent Extraction

RE Metal and Alloy Production

Strip CastingCorse Crushing

Hydrogen DecrepitationJet Miling

Magnet Powders

Better Magnets Production

Better End-Products

BetterEnd-Use Applications

Metal Alloys

AML Melbourne, Florida321.728.7543info@amlsm.com

Mark Senti, CEO321.514.4661msenti@amlsm.com

AML-Enabled.com

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TRANSFORMING MAGNET TECHNOLOGY. DRIVING A GLOBAL MARKET.

EV UAV eVTOL Aircraft Ships MedicalWind EnergyMining Consumer

Reimagining the Magnet Technology that Drives the World