Battery Separator Developments 2018 - 2019

1. Battery Separator Developments 2018 - 2019 July, 2019

2. Overview • Introduction to the battery applications • Lead Acid Battery manufacturing process • Ahlstrom-Munksjo innovation from Fabriano • Battery separator product portfolioin Fabriano

3. Lead Acid battery application and type • BatteryseparatortechnologyalignedwithAhlstrom-Munksjo capabilities • Initial platform: Ahlstrom-Munksjo (AM) Fabriano • Automotive • 60% of the LAB market in value 80% in volume • 400M batteries/year globally • Includes passenger cars, commercial, HEV and EV • Battery types • Standard Flooded Batteries: SFB • Used for start, ignition and lighting – basic functions • Enhanced Flooded Batteries: EFB • Accept more cycle than SFB • Valve Regulated Lead Acid: VRLA (also called AGM as Absorbed Glass Mat) • Higher cyclability, less maintenance • Motive and deepcycle • 15% of the LAB market in value 10% in volume • Forklifts, golf carts, railroad, mining (ebike) • Stationary • 25% of the LAB market in value 10% in volume • Telecommunication, data centers, back-up, uninterruptible power supply (UPS)

4. Battery manufacturing steps 1/3 • 1- Grid manufacture • Lead base material for electrode • Function: support active electrode material and collect current • 2- Electrode plate manufacture • A lead paste is coated onto the grid • Function: release and adsorb lead charges • The paste is cured in ovens but remains brittle •  Most of battery manufacturers wrap the pasted plate with a paper or a synthetic tissue to prevent workers to be in contact with lead and to prevent dusting of the plate during the use of the operating life of the battery

5. Battery manufacturing steps 2/3 4- Assembly Placing the plates together and insert then in the battery case • 3- Separator insert • During the plate assembly a separator in placed between the positive and negative plates to prevent contact and allow ions to displace freely •  Depending on the battery type and final usage, separator can be either PVC, PE, Rubber films, glass reinforced films and Absorbed Glass Mat

6. Battery manufacturing steps 3/3 6- Filling, Formation and Test Filling with electrolyte Charging Formation and deep cycle tests 5- Connecting and closing Plates are connected by welding and case is closed

7. Battery separator manufacturing in AM Fabriano • Microglassfor AGM (Absorbed Glass Mat) in AM Fabriano – main challenging points requiring innovation • Basis weigth : 80 to 340 g/m² - challenging range to achieve good formation at different basis weight • Specific surface area: 1.2 m²/g ; 1.4 m²/g and 1.6 m²/g – challenging raw material flexibility in stock preparation • Product rangetested on the machine betweenJuly 2018 and July 2019, seetablebelow Source: SuP survey 2018

8. Processinnovationin AM Fabriano High efficiencycleaningsystem, optimized for batteryseparators and othermicroglassproducts (optimization of a proprietaryprocess) Formationprocess for an optimizedmicroglassstructure(proprietary) Stock preparation of microglassstock designed for wide range of rawmaterials

9. Results of processimprovements Gradesproduced in trials betweenJuly 2018 and July 2019 show improvedWickingbehavior at a given BET level Seetablesbelow to compare with samples from competitors available in the market

10. Conclusions • Processinnovation in the Fabriano plant of Ahlstrom-Munksjo hasfocused on improvements in the formation of battery separator, allowing to reach a range of basisweight up to 340 gsm • Optimizedcleaningprocess for microglassimpurities • Flexibleformation for a wide range of microglassfibers with a wide range of basisweight • The mainoutcomehasbeen the possibility to produce trial grades with improvedwickingcharacteristics, covering the full range of BET levelstargeted for the trials • Processstability and qualitylevelhasallowed to start commercial production of selectedgrades

11. Thank you!