Chris Pruitt CEO/President

North American View of Lead Batteries –

Key to Unlocking Energy Storage Solutions

This is confidential information and is not to be duplicated or published without the permission of East Penn Manufacturing Co.
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AGENDA

▪ IntroductionEast Penn
▪ Lead Battery Value Proposition
▪ Lead Batteries and Electric Vehicles
▪ Challenges to Electrification
▪ Lead Batteries and Energy Storage
▪ Battery Technologies for the Future

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 EAST PENN…A PROUD PAST WITH A BRIGHT FUTURE

A Classic American Success Story… …Continues

DeLight Breidegam Sr. DeLight Breidegam Jr. Sally Breidegam Miksiewicz Dan Breidegam
Chairman

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EAST PENN MANUFACTURING CO.
$3+ Billion Annual
Revenue
Providing manufacturing, distribution,
warehouse and recycling jobs in
34 US states
and
Over 10,400 employees globally
8 Canadian provinces Over 7,900 employees in PA
Worlds largest single-site lead
battery manufacturing facility,
located in Lyon Station, PA

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 TRANSPORTATION & INDUSTRIAL
▪ Lead battery MARKETS WE SERVE
technology
▪ More than 515
designs
▪ Lithium
Automotive Commercial Marine
▪ Forklift trucks
▪ U.S. Government

Utilities Telecom & Forklifts

Back-up Power

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Lead Battery Value Proposition

This is confidential information and is not to be duplicated or published without the permission of East Penn Manufacturing Co.
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BATTERIES ARE IN GREAT DEMAND

▪ Electrification of Vehicles
▪ Backup Power for Critical
Infrastructure
▪ Energy Storage for
Utilities/Renewable Energy

Lead Can and Will be a

Key Part of this Picture

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 SUPPLY CHAIN ADVANTAGES

▪ Mature collection system =

Replenishment of lead that
minimizes mining
▪ Mature recycling process =
More secure supply chain
▪ Less reliant on unstable countries
to source materials
▪ Less reliant on adversaries for key
materials

Source: https://essentialenergyeveryday.com/resource/lead-battery-circular-economy/

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ADVANCEMENTS IN RESEARCH AND DEVELOPMENT

▪ BiPolar
Positive
▪ Shorter current path Active
Negative
Active
Material
Material
▪ Less lead weight
▪ Increased cycle life
Bipole

▪ Advanced AGM
▪ Carbon additives
▪ ArcActive

▪ Continuing Research at US National Laboratories

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THE CHALLENGE FOR THE FUTURE PRODUCTS
Engineering Tolerance (ET)

LSL Target USL

reliable Poor
Cp < 1 Natural Tolerance
NT
predictable repeatable
Marginal
Cp = 1 NT

Good
stable consistent Cp > 1 NT

Better
Cp >> 1 NT

We need less variation

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THE “NEW NORMAL” IN DEVELOPMENT & ENGINEERING
▪ It’s not just about the battery – it’s the system

▪ Battery Monitoring & Management will play a more important role (SOC,SOF, SOH)
▪ Changes after approval will be more difficult to make – do it right the first time!

▪ Start with “the end in mind” – what do we want to achieve?

▪ Use a robust “gated” product development process (clear objectives and
deliverables)
▪ The solution lies in the balance of: product – process – equipment … solve
contradictions
Solving Contradictions is called

INNOVATION
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Lead Batteries and Electric Vehicles

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THE ELECTRIC VEHICLE

▪ It’s Happening

▪ It’s Fun

▪ Consumer Acceptance

▪ Billions of Dollars Investment

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MYTH BUSTERS

There’s no place for a lead battery in an

1 electric vehicle

Americans will be willing to relinquish their

2 large vehicle and long driving ranges

Electricity that charges battery packs is

3 produced using zero carbon sources

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 ELECTRIFICATION - TYPES OF VEHICLE PLATFORMS
▪ Automakers pushing ahead to introduce more hybrids, plug-in hybrids and EVs to meet
lower EPA emission requirements

MHEV
Start / Stop MEV HEV PHEV EV

Source: https://essentialenergyeveryday.com/solutions/electric-and-autonomous-vehicles/

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 CONSUMER POWERTRAIN PREFERENCES FOR THEIR
NEXT VEHICLE

Source:https://www2.deloitte.com/content/dam/Deloitte/global/Documents/Consumer-Business/us-2022-global-automotive-consumer-study-global-focus-final.pdf January 2022

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CONSUMER DRIVING RANGE EXPECTATIONS

US consumers expect fully charged BEC

driving range to be north of 500 miles,
while those in China, Japan, and India are
content with a range of around 250 miles.

https://www2.deloitte.com/content/dam/Deloitte/global/Documents/Consumer-Business/us-2022-global-automotive-consumer-study-global-focus-final.pdf January 2022

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AS VEHICLES BECOME INCREASINGLY ELECTRIFIED,
MORE POWERFUL BATTERIES ARE NEEDED
GROWTH RATE VEHICLE FORECAST THRU 2030
2020-2030F U.S. percent of new car sales by powertrain 2020-2030F U.S. car parc penetration by powertrain
[Percent of Total New Sales] [Percent of Total Car Parc]
ICE/Start-Stop MEV (P)HEV EV ICE/Start-Stop MEV (P)HEV EV
2% 3% 4% 7% 1%
4% 4% 10% 1% 1% 2% 3% 4%
6% 14%
5% 7% 7% 1% 1% 2% 2% 3% 4%
10% 7% 4% 5%
8% 1% 1% 2% 3%
9%
12%
15%

97% 97% 95% 93% 90%

88% 85% 87%
80% 77%
70%
64%

New Vehicle Sales by Powertrain Car Parc by Powertrain

2020 2022 2024 2026 2028 2030 Source: IHS Markit / AASA 2020 2022 2024 2026 2028 2030
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This is confidential information and is not to be duplicated or published without the permission of East Penn Manufacturing Co.
Challenges to Electrification

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 RENEWABLES
Shares of US Primary Energy, 1985 and 2020, After >$360B Spent on Wind & Solar

1985 2020

10%
27.2%

90% 60.8%
12%

Hydrocarbons Hydrocarbons
Wind & solar Wind & solar
Hydro, nuclear, & biomass Hydro, nuclear, & biomass
Sources:Robert Bryce Presentation 6. 7.22 – BP, https://www.mdpi.com/1996-1073/13/18/4839 and https://www.eia.gov/tools

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 RENEWABLES

• NREL: 90% renewable

electricity requires doubling
HV transmission
• US has 240,000 miles of HV
transmission (230kV and up)
• From 2008 to 2021, US built
1,700 miles/year of HV
transmission
• At that rate, doubling HV
All-Renewable Schemes Require
capacity will take 140 years!
Massive Increases in High-Voltage
Sources: Robert Bryce presentation 6.7.22- NREL, C Three Group
Transmission...

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RENEWABLES
US Wind Energy Rejections, 2015 to 2021
70 65 66
60
60

50
41
40
29 31 31
30

20

10

0
2015 2016 2017 2018 2019 2020 2021

Over 330 rejections or restrictions since 2015

Source: https://robertbryce.com/renewable-rejection-database/

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 GRID STABILITY

Today’s Grid Is Buckling

Under Existing Load

Source: https://www.nerc.com/pa/RAPA/ra/Reliability%20Assessments%20DL/NERC_SRA_2022.pdf

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SUPPLY CHAIN CHALLENGES

“Put very simply, all the world’s cell production combined

presents well under 10% of what we will need in 10 years.
Meaning, 90% to 95% of the supply chain does not exist.”
RJ Scaringe, CEO Rivian Automotive

Source: RJ Scaringe, Chief Executive Rivian Automotive, April 18, 2022 quoted in Wall Street Journal Aricle: Rivian CEO Warns of Looming Electric-Vehicle Battery Shortage

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EV CHALLENGES

Supply
Chain

Range
Anxiety and
Battery
Capacity Recycling
Mountains
to
Climb

Environmental
Aspects Cost of
Batteries

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 EV CHALLENGES

“EV only make sense long term with emission free electricity.”

“EV battery production needs to use green energy (CO2 free) in battery
manufacturing …if that doesn’t happen the CO2 footprint
of an EV will increase.”
Reuter’s Automotive Europe Conference June 2022 – Major OEMs

Source: Reuter’s Automotive Europe Conference June 2022 – Major OEMs

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Lead Batteries and Energy Storage

This is confidential information and is not to be duplicated or published without the permission of East Penn Manufacturing Co.
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ENERGY STORAGE OPPORTUNITIES

Energy Storage Uninterruptible Power Supply Motive Power

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 ENERGY STORAGE OVERVIEW
▪ Market Stats
▪ 3.5 GW Deployed in 2021 (2X Increase)
▪ 2.9 GW Grid Scale
▪ 63.4 GW Forecast from 21 – 26’
▪ Assumes Standalone Storage ITC & Solar Tax Extension
▪ Large, Growing, Complex Space
▪ Grid Scale
▪ Large > 750kW
▪ Commercial Industrial – 30kW-750kW
▪ Residential – 0.5-50kW
▪ Many Applications
▪ In Front of/Behind Meter
▪ Renewable Integration
▪ Resilience (Backup)
▪ Energy management
▪ Ancillary Services (ex: Freq Regulation)
▪ Containers, Purpose Buildings, Cabinets, etc.
https://www.woodmac.com/news/opinion/us-battery-storage-deployment-doubles-in-a-single-year/

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 ENERGY STORAGE PRODUCT TECHNOLOGY

▪ Lithium – Dominant (>90% Share) Due

to Cost/Specification/Size Advantages

▪ Lead – Long Term Player in Residential

and Smaller Commercial Systems, Spec
Challenged (Energy Density, Cycle Life,
Calendar Life), Successful “Demo” Scale
Performance in Larger Systems

▪ Flow Chemistries, Other – Interest in

Longer Duration Applications (>4 Hours)

https://www.woodmac.com/reports/power-markets-can-lfp-technology-retain-its-battery-market-share-428028

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 ENERGY STORAGE CHALLENGES

▪ Challenges
▪ Policy/Regulatory Driven Markets
▪ Varies State to State
▪ Permitting & Interconnect Inconsistencies
▪ Increasing System Costs Due to Current Inflationary Environment
▪ May Make Projects Unviable Without Additional Incentives
▪ Supply Chain Delays – Impacts Project Timings
▪ Safety – UL, NFPA/Code Requirements and Considerations (Numerous High
Profile Lithium Events)
▪ Disposal – Recyclability, Lead Very Positive, Lithium in Development

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UNINTERRUPTIBLE POWER SYSTEMS

Lead Lithium
▪ Reliable and Safe ▪ Growing Market Share
▪ Proven in multiple applications ▪ Safety Concerns in Cities
▪ New York Stock Exchange (New York City)
▪ Data Centers
▪ Telecommunications

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MOTIVE POWER

▪ Lead and Lithium complement each other in lift truck applications

▪ Specify the right battery in the right use case

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Battery Technologies for the Future

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BATTERY TECHNOLOGY ECONOMICS

▪ Government subsidies

▪ Raw material resources

▪ Affordable to consumer

▪ Sustainability and the Circular Economy

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BATTERY TECHNOLOGY COMPARISON

Lead Batteries Lithium Batteries

• Mature and extremely valuable • Newer technology with higher

technology energy density
• Expanding their capabilities with • Chemistries evolving and
new research and development developing
• Circular economy model • Recycling still in development
• Long-term solution for many • Expensive alternative for many
applications applications
• Secure and mature supply chain in • Supply chains under-developed and
western nations dependent on foreign regions

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FINAL CONSIDERATIONS

Need for multiple technologies to meet demands

Environmental and Life Cycle Assessments cannot be overlooked

Economics need to be considered

Material stewardship for all technologies is key

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Thank You!

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