Samsung SDI EV Battery Manufacturing Plan

Edmond KwokChris Suk

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Overview• Mission statement• Demand forecast• Product information• Process flow• Bill of material• Equipment selection• Plant layout• Labor• Yields and uptime• Ramp plan• Cost of goods• Cost analysis: manual vs full automation assembly

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Mission Statement

Samsung SDI will build a third battery production line dedicated to automotive applications to meet increasing EV demands.

Location: Ulsan, South KoreaCapacity: 5 GWh per yearOperation: 24/7/365, 3 shiftsLabor: Semi-automatedSupply capacity by 2020: ~100,000 EV per year

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SDI supplies batteries for…

BMW i3 – 22 kWhBMW i8 (HEV) – 7.1 kWhBMW X5 eDrive (future) – 9.0 kWhBMW i5 (future?)Chrysler Fiat 500e – 24 kWh

BMW CEO says they will make 100,000 electric vehicles a year by 2020SJSU ENGR297G

EV Range• 3-4 miles range per kWh• 200 miles range is ideal

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Demand Forecast

200𝑚𝑚𝑚𝑚𝑚𝑚𝑚𝑚𝑚𝑚4𝑚𝑚𝑚𝑚𝑚𝑚𝑚𝑚𝑚𝑚 𝑝𝑝𝑚𝑚𝑝𝑝 𝑘𝑘𝑘𝑘𝑘

= 50 kWh

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Demand Forecast

200𝑚𝑚𝑚𝑚𝑚𝑚𝑚𝑚𝑚𝑚4𝑚𝑚𝑚𝑚𝑚𝑚𝑚𝑚𝑚𝑚 𝑝𝑝𝑚𝑚𝑝𝑝 𝑘𝑘𝑘𝑘𝑘

= 50 kWh

100,000 EVs x 50 kWh = 5 GWh per year

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Product

Form factor: Large format prismaticCathode: LiNiMnCoO2

Anode: GraphiteSizes: 28Ah, 40Ah, 60Ah, 64Ah

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NCM: ~160 Wh/kg

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Process Flow

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Mixing Coating

Calendaring Slitting

Electrode Fabrication

Viscosity Percent Solids

Loading Check

Thickness check Assembly

Cathode:LithiumNickelManganeseCobaltOxalic AcidNMPPVDF

Anode:GraphitePVDFNMP

Cathode:Aluminum Foil

Anode: Copper Foil

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Winding InsertionGang

Welding Tabs

Electrolyte Fill

Laser Welding

EnclosureDegassing

Formation

Assembly

Jelly Roll (9x)

Prismatic Enclosure

Cathode

Anode

Separator

Tab Stock

Cap

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Formation

Initial Charge

Full Discharge

Check Voltage

Partial Charge

Sorting & Shipping

Hold for 21 days

Remove Bad Cells

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Bill of MaterialsSamsung SDI Large Format Prismatic Cell BOM

BOMLevel Part name Units Cost per unit Cost per cell Supplier

1 Cover 1 $0.15 $0.22 In-house2 Pressure Vent 1 $0.15 $0.22 In-house2 Battery Terminals 2 $0.20 $0.58 In-house2 Current Collector 2 $0.20 $0.58 In-house2 Polystyrene insulator 4 TBD TBD TBD

1 Metal prismatic can 1 In-house1 Jelly roll 9 N/A N/A In-house

2 Al Tabs (2mm width) 9 $0.05 $0.65 Samsung2 Ni Tabs (2mm width) 9 $0.05 $0.65 Samsung2 Tape 2 $0.01 $0.02 Samsung2 Anode 1 N/A N/A

3 Oxalic acid kg $0.65 $0.05 Alibaba3 PVDF (Indirect) kg N/A N/A Alibaba3 NMP (Indirect) kg $5.00 $0.60 Alibaba3 Graphite kg $18.00 $5.21 Samsung3 Cu Foil kg $10.00 $2.63 Samsung

2 Cathode 1 N/A N/A3 LiNiCoMnO2 active kg $20.00 $9.85 Samsung3 Carbon kg $0.60 $0.05 Samsung3 PVDF kg N/A N/A Alibaba3 Al Foil kg $5.00 $0.61 Samsung

2 Separator sq m $1.00 $2.89 Polypore1 Electrolyte kg $40.00 $3.51 Samsung

2 Additives kg TBD TBD Samsung1 Top insulator 1 $0.02 $0.031 Bottom insulator 1 $0.02 $0.03

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Mixer SelectionLiNiCoMnO2 active: 12,268,034 kg per yearGraphite: 7,202,896 kg per year

Equipment Supplier: AsadaCathode prep: 4 x 1000 gallon mixersAnode prep: 2 x 1000 gallon mixersCathode mix: 4 x 1000 gallon mixersAnode mix: 2 x 1000 gallon mixers

12 operators2 engineers2 QC1 supervisors

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Coater Selection

Equipment Supplier: HiranoCathode coater: 7 x 30 meter drying zone7 x NMP abatement Anode coater: 10 x 30 meter drying zone

26 operators2 engineers2 QC2 supervisor

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Calender Selection

Equipment Supplier: HitachiCathode: 3 x 1000mm web calenderAnode: 3 x 1000mm web calender

6 operators2 engineers2 QC1 supervisor

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SlittingEquipment Supplier: NishimuraCathode:3 x slitter (50m/min)Anode: 3 x slitter (50m/min)

6 operators2 engineers2 QC1 supervisor

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Winding

Equipment Supplier: TBD

8 x large format winders

6 operators2 engineers2 QC1 supervisor

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Dry Room

1 x 30,000 square foot

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Automated Assembly

Equipment Supplier: Hitachi

3 x full automation line

3 operators2 engineers2 QC1 supervisor

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FormationChannelsCapacity: 60A maxCost: 500$ per channel# of Channels: 79,621

41 operators2 engineers2 QC3 supervisors

Cell charge/discharge: 20 hoursExtended hold: 21 days

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Plant Layout

Material Stores

Finished Goods

Mixing

Coating

Cathode

Anode

Con

verti

ng

Dry Room

Cathode Calendaring and Slitting

Anode Calendaring and Slitting

Offices

Asse

mbl

y

Form

atio

n

1” = 30m 339,770 sq ft557’ x 610’

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Labor

Average wage – Ulsan, South KoreaOperator: $14.77 per hourManufacturing Supervision: $22.24 per hourManufacturing Engineer: $31.79 per hour

Overhead: 38%

Direct labor cost: $18,208,516Indirect labor cost: $11,075,320

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Yields and Uptime

Capacity: 27 million cells per year

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Ramp PlanProduction capacity2016 – 47%2017 – 53%2018 – 73%2019 – 80%2020 – 100%

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Ramp Plan

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Material Costs

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Capacity: 27 million cells per year

Cost of Goods

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Capacity: 27 million cells per year

Cost of Goods

BMW i3: 96 cells x $30.62 = ~$3000

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$1715.60 x 8 = ~$13,725 SJSU ENGR297G

Assembly: Manual vs AutomationManual assembly7 assembly lines$1.75 million capital49 operators90% process yield

Automated assembly3 automated lines$9 million capital3 operators97% process yield

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Assembly: Manual vs AutomationManual assembly7 assembly lines$1.75 million capital49 operators90% process yield

Automated assembly3 automated lines$9 million capital3 operators97% process yield

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Assembly: Manual vs AutomationManual assembly7 assembly lines$1.75 million capital49 operators90% process yield

Automated assembly3 automated lines$9 million capital3 operators97% process yield

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Assembly: Manual vs AutomationManual assembly7 assembly lines$1.75 million capital49 operators90% process yield

Automated assembly3 automated lines$9 million capital3 operators97% process yield

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Assembly: Manual vs AutomationManual assembly7 assembly lines$1.75 million capital49 operators90% process yield

Automated assembly3 automated lines$9 million capital3 operators97% process yield

$53.5 million per year difference! SJSU ENGR297G

Thank you!