Accelerating the Electrification of U.S. Drive Tra

AcceleratingtheElectrificationofU.S.DriveTrains:ReadyandAffordableTechnologySolutionsforDomesticallyManufacturedAdvancedBatteriesLarryAtkinsExideTechnologiesJune7,2010ProjectID#ARRAVT004Thispresentationdoesnotcontainanyproprietary,confidential,orotherwiserestrictedinformation2•BeginNegotiation-Aug2009•StartProject-Dec2009•ProjectFinish-Dec2012•Percentcomplete-12%(effectiveMar2010)•AdvancedBatteryProductionCapacity-(Domestic)toEnableAdvancedVehicles–ImprovedEnergyEfficiency–ReducedDependenceonForeignOil–ReductioninGreenhouseGasses–EnhancingNationalSecurity•ARRATargets–StimulateEconomy–IncreaseDomesticEmployment•Totalprojectbudget-$69.9M–DOEshare-$34.3M(49%)–Exideshare-$35.7M(51%)•FundingreceivedinFY09=$0•FundingPlanforFY10=$15.3MFY11=$16.1MFY12&13=$2.9MTimelineBudgetBarriers&Targets•NoProjectPartnerships•ExideShare–InternallyFunded•CustomerSupport•17Commitment/SupportLetters•MaterialVendorSupport•StrategicSupplyAgreementsPartnersOverview3ProjectObjectivesDOEMeritReview-2010ThisprojectcoverstheexpansionofExideTechnologies’manufacturingcapacityforproducingadvancedbatteriesinexistingU.S.-basedbatteryplants–Theprojectplanistoimplementacombinedincreaseinyearlyproductioncapacityof1.5millionadditionalunitsattwoofExide’scurrentmanufacturinglocations•Columbus,Georgia•Bristol,Tennessee–Theseadvancedbatterytechnologiesaretargetedtohaveanacceleratednear-termimpact(inhighvolume)formicro-hybridvehicles,idlereductioncommercialvehicles,andotherstrategicmarketsegments4ProjectObjectivesDOEMeritReview-2010ThismanufacturingexpansionprojectinvolvestwoofExide’sglobaltechnologies:aSpiralWoundAbsorbedGlassMat(AGM)designandaFlatPlateAGMdesign,bothofwhichwillbemanufacturedwithadvancedcarbontechnologyasrequiredbycustomerspecificadvancedvehicleapplications–SpiralWoundExampleFlatPlateExample5ProjectObjectivesDOEMeritReview-2010TheExideAdvancedBatteryExpansionProjectAddressesKeyProgramTargets-ARRAandVTProgram–$70Mindirecteconomicactivityintwodomesticlocationsoverthe3yearscopeoftheproject–320manufacturingjobsinareashithardbytheeconomicdownturn•200jobsinColumbusGA•120jobsinBristolTN–Wheninstalledinvehiclesincorporatingenergymanagementtechnologies,theseadvancedbatteriesenableasavingspotentialof•75milliongallonsoffuelperyearmorethan$200Matthepump•3millionbarrelsreductionofimportedoilperyear•600,000metrictonsofCO2peryearinreducedemissions6ProjectMilestonesDOEMeritReview-2010•FY09–ARRAAwardAnnounced–Aug09–NegotiationPeriod–noprojectactivityallowed•FY10–Progress–DOEAgreementFinalized–Dec09•10%spendingcappendingNEPACA–DCAAAuditReportAccepted–Mar10–Go/No-GoNEPACA(FONSI)–Mar10•Fullapprovalachieved/spendingcapremoved7Approach/StrategyDOEMeritReview-2010Thisprojectisbeingcarriedoutinfourmajorprojectphasesateachlocationoverthe3-yearlifeoftheproject–ProjectPhases1)DesignProjectandArrangeFunding2)Procurement&Installation3)Shakedown&Qualification4)ProductionRamp-up&MarketDeployment8Approach/StrategyDOEMeritReview-2010Theprojectdeploymentplan-keyitems−ProjectTaskAreas1)Pre-AgreementPlanninga)PreparedocumentsforNEPAEAb)Preliminaryproductengineeringplanningc)Orderlongleadtimeequipment2)ProjectManagementandPlanninga)Productdesignandplanningb)Orderremainingequipmentc)EnvironmentalPermittingd)Receive,InstallandDebugEquipmente)DelivertotheDOEof100batteriesmanufacturedfromeachcompletedmanufacturingfacilityfromlowrateinitialproductionforvalidationpurposes3)ProductionScale-upincludingHiringandTrainingofNewManufacturingEmployees4)AchieveProductionandProductPerformanceTargets9AccomplishmentsDOEMeritReview-2010TheExideBatteryExpansionProjectwasonlyRecentlyFullyApprovedandhasNowBeguntheFullImplementationPhase–SuccessfulDOEnegotiationperiodtoachieveCooperativeAgreement(Aug’09–Dec’10)–SuccessfulNEPAEnvironmentalAssessment(EA)resultinginFindingofNoSignificantImpact(FONSI)forbothprojectsites(Sep’09–Mar’10)–SuccessfulDCAAAuditreportregardingfinancialsystemsandcontrols(Sep’09–Mar’10)10AccomplishmentsDOEMeritReview-2010ProjectManagement–Aformalorganizationhasbeenimplemented•High-levelSteeringCommitteewasformedwithcorporateofficerleadershipanddirection–Periodicmeetingschedule-established&ontrack•Functionalteamswereformedwithexperiencedleaders11AccomplishmentsDOEMeritReview-2010ProjectManagementStructure•Implementationteamestablished•Systemsoftwaredecisionsandupgrades•Specialrefreshertrainingcompleted–PMBOKPrinciples–Commondeploymentacrossprojectsites•DOEEVMspreadsheet–Verifiedconformance–Trainingforkeyteammembers12AccomplishmentsDOEMeritReview-2010ProjectDeployment–ColumbusGASite~FlatPlateAGM•FulltimeProjectManagerhiredtorunproject•WeeklyColumbusUpdatemeetings–crossfunctionalteammembers–executivestafffromcommercialdivisions•WeeklyColumbusteammeetings–Focusedlocaltaskassignmentsandreviews•Majorequipment/processtechnicalreviews–Ongoingandstructuredtoachieveneeds13AccomplishmentsDOEMeritReview-2010ProjectDeployment–ColumbusGASite~FlatPlateAGM•CriticalPathEquipmentontrack–Specificationandprocurementplanning–Layoutdecisionsandimplementationschedule14AccomplishmentsDOEM