PEM Fuel Cell Stack Sealing

1. PEM Fuel Cell StackSealing Steve Koch Freudenberg-NOK General Partnership March 10, 2005

2. The Freudenberg & NOK Global PartnershipServing Customers Worldwide FREUDENBERG & COMPANY WORLDWIDE • Global R & D technology exchange • Globally integrated supply of products from factories in 27 countries • One-piece-flow lean manufacturing • “Zero Warranty” focus • Over 30,000 employees serving our customers • Total automotive sales of approximately $4 billion $3.5 Billion FREUDENBERG-NOK $1.0 Billion NOK CORPORATION $3.0 Billion

3. The Freudenberg & NOK Global PartnershipServing Customers Worldwide FREUDENBERG & COMPANY WORLDWIDE • Global R & D technology exchange • Globally integrated supply of products from factories in 27 countries • One-piece-flow lean manufacturing • “Zero Warranty” focus • Over 30,000 employees serving our customers • Total automotive sales of approximately $4 billion $3.5 Billion FREUDENBERG-NOK $1.0 Billion NOK CORPORATION $3.0 Billion • Freudenberg & NOK Group Companies Provide • Fuel Cell Component Solutions Worldwide • Sealing • Gas Diffusion Materials • Humidification Units • Bipolar Plates • Filtration • Noise Isolation Mounting Systems

4. Presentation Topics • Fuel Cell Stack Sealing • Stack Sealing Issues • Addressing the Issues • Low volume sealing solutions work well • But, the solutions do not meet the cost target • Design, Manufacturing and Quality Teams must work collectively to meet the volume cost targets

5. Catalyst Coated Membrane (CCM) Seal Gas Diffusion Layer (GDL) Seal Fuel Cell Stack Components PEM Fuel Cell Stack Bipolar Plate The seal interfaces with all of the stack components

6. FC Seal Design Criteria • Accommodate stack component tolerances • Must be small (maximize active area) • Low clamp load (minimize active area load fluctuations) • Withstand chemical environment • Design for assembly • Seal placement / location is critical • Easy to handle (packaging and delivery) • High volume assembly • Durability • Automotive 5,000 hours • Stationary 40,000 hours • Seal design impacts the fuel cell function • It should not be an after thought!

7. Some of Today’s Sealing Solutions • Adhesive and/or bonding • Die cut sheet stock rubber • Molded rubber or o-ring • Screen print rubber • Carrier seal • Seal integrated with GDL • Seal integrated with bipolar plate • Seal integrated with MEA • Others ? Multiple different materials • Many Sealing solutions • Many manufacturing methods • Many different materials Industry optimization required

8. Automotive Residential Today’s US volume Cells/stack 400 100 Seals/cell 2.5 Seals/stack 1000 250 Stacks 100 200 Seals 100,000 50,000 Seals volumes do not justify large investments

9. Assemble Purchase Gas first Bipolar Purchase Place Diffusion Layer Plate and Second GDL Bipolar Plate (GDL) Seal Assemble Purchase Assemble Coolant Catalyzed Purchase Assemble second Seal Membrane Cooling Plate first GDL to seal (CCM) Plate Assemble Purchase Seal { Purchase { Assemble CCM Top Bipolar for MEA Cooling Seal Plate Single Fuel Cell Purchased Assembled Assembled A Current Stack Manufacturing Process A complicated, costly, process

10. Quality • Apply six sigma capability: • 3 stacks per hundred will have a defective cell seal • If one cell leaks, the entire stack may require a rebuild • The seal quality requirements are high • Low volume 100% inspection drives cost up

11. Presentation Topics • Fuel Cell Stack Sealing • Stack Sealing Issues • Addressing the Issues

12. Issues with current sealing methods • High Cost • Designs have not been optimized • Stack Assembly optimization • Quality requirements are high • Investment is needed to reduce costs, but today’s volumes do not justify the investment • Test methods being developed High cost inhibits high volumes

13. Presentation Topics • Fuel Cell Stack Sealing • Stack Sealing Issues • Addressing the Issues

14. Design Optimization • Concurrent designing assures component compatibility and system optimization • Optimized designs will lead to material optimization • Robust designs assure that the components work under a variety of conditions • Integrated seals will lead to stack assembly improvements Design Optimization will lead to process optimization

15. Example of Optimized Seal • Seal integrated with MEA • Old process map • New process map

16. Seal on MEA Robotic dispense Injection Molding Compression Molding Example: Seal integrated with MEA

17. Assemble Purchase Gas first Bipolar Purchase Place Diffusion Layer Plate and Second GDL Bipolar Plate (GDL) Seal Assemble Purchase Assemble Coolant Catalyzed Purchase Assemble second Seal Membrane Cooling Plate first GDL to seal (CCM) Plate Assemble Purchase Seal { Purchase { Assemble CCM Top Bipolar for MEA Cooling Seal Plate Single Fuel Cell Purchased Assembled Assembled Current Stack Manufacturing Process

18. { { Purchasing Assembly Stackmanufacturing process using a seal integrated with MEA Purchase Integrated seal on MEA Align Place Cooling Bi- Assemble First Purchase polar plate with Integrated seal Bipolar Plate Bipolar Plate to plate Integral Seal Purchase Cooling Plate with Integral Seal Single Fuel Cell Assembled A simple, lower cost process

19. Can We Create The Volumes? • Market forces • Niche markets • Accepts initial higher costs • Ensures the business is sustainable • Niche markets can be slow to develop • Subject to uncertainties • Costs and/or volumes may take too long • Government funding • Governments must commit to purchasing fuel cells • Governments must commit to continued R&D and manufacturing funding Innovative government funding can create small volumes High volumes need to come from investments that lower costs

20. Addressing the Issues • Lower costs • Integrate components to reduce part counts • Optimize the material utilization • High quality requirements • Robust designs • Concurrent integrated system design • Investment risk • Government funding to help start demand • Use Lean Systems to manage the investment risks All the issues can be resolved

21. Can History Guide Us? • An example; the introduction of automobiles • In 1908, an automobile cost ~$3000 • By 1923, a model T cost ~$260 and was affordable by millions • The introduction of a new manufacturing technology, the assembly line, reduced the costs Today, fuel cells need a similar manufacturing technology breakthrough