electrochem capabilities .- lean manufacturing systems - continuous improvement initiatives...

Electrochem Capabilities

Agenda

1. Who Is Electrochem?

2. Powering Critical Applications

3. Operational Excellence

4. Looking Forward

5. Electrochem: Partner of Choice

2 Electrochem Confidential

Who Is Electrochem?

3 Electrochem Confidential

Electrochem Confidential

What We Do

Electrochem is the premium provider of custom battery solutions to niche applications with high energy requirements operating in extreme environments

where the cost of failure is significant.

Electrochem designs and manufactures primary lithium cells and battery packs; secondary battery packs; and battery chargers.

4

Electrochem Confidential

Our Vision

Enhancing lives worldwide by providing superior power solutions that enable the success and

advancement of our customers critical applications.

5

Electrochem Confidential

A Value Add, Power Solutions Partner

We Are a Power Solutions Company

We understand our customers and their markets, partnering to bring your designs to life.

Market drivers Unmet end-user needs Product materials and design challenges Organizational structure and product development processes

We Add Value to Your Business

We help our customers build products, that emphasize safety and reliability, for applications where battery failure is not an option.

Quality focused manufacturing Technology advancements Security of supply

6

Electrochem Confidential

Electrochem Core Competencies

1. Experience- 40+ years experience with critical battery applications- Extensive battery chemistry knowledge and fundamentals, including proprietary electrolytes and a

variety of cathode chemistries

2. Quality & Reliability- Failure is not an option- Multi-discipline product development teams applying DfX principles and other risk mitigation tools- Comprehensive product/process qualifications and validations

3. Technological Innovation- Wide Range Batteries: Low temperature deck check capabilities and improved inventory control- High Temperature Batteries: Pushing temperature limits beyond 200C

4. Culture of Continuous Improvement- Lean manufacturing systems- Continuous improvement initiatives leveraging Six Sigma methodologies

5. Safety & Compliance- Numerous global certifications and compliance measures (ISO, UL, CE, IATA, DGR, TCC)- Fail-safes incorporated into all battery pack designs ensuring user safety

7

Electrochem Confidential

Electrochem, an Integer Company

Integer is one of the worlds largest medical device outsource manufactures, delivering revenues approaching $1.4B annually with numerous locations throughout the world.

Electrochem operates as an Integer company, part of Integer at the highest level, while maintaining independent leadership, processes, and decision making. Our heritage for superior quality, reliability, and innovation are part of our DNA; deeply rooted from our origins when Wilson Greatbatch invented the battery for the first implantable pacemaker.

Electrochem is uniquely positioned to benefit from this structure. We have the ability to leverage the extensive resources of Integer when needed, while maintaining the flexibility to operate independently. This allows us to have the stability and influence of a larger company with the focus and agility of a smaller one.

8

Blank

Electrochem Confidential

Global Footprint

9

Electrochem Confidential

Where Were Located

10

Electrochem Confidential

Our Operations Raynham, MAFacility: 82,000 sq ft,, expandable to 122,000 sq ft, (owned)Staffing: 260 Associates Current Utilization: 2 Shifts, 5 days x 8 hour shift (>70%)Regulatory: ITAR, DHS, PSM, 21CFR Section 820 Quality System: ISO9001:2008, ISO13485:2012, FDA RegisteredTechnical Capabilities: Primary lithium cell technology, Cathode & Electrolyte technologies, Battery pack assembly techniques, IPC610 soldering, laser welding & marking, glass-to-metal seals, ultrasonic & resistance welding, robotic assy.

11

Product Capabilities

Primary Cells & Battery Packs

Secondary Battery Packs

Secondary Battery Chargers

Complete primary battery production, from cell manufacturing through final pack assembly and testing

Vast portfolio of technical capabilities, intellectual capital, and industry experience ensuring the ability to meet all project requirements

Eagle Eye Program: Associate engagement program designed to drive a zero defect safety & quality culture

State-of-the-Art Facility

Fortified infrastructure (room within a building) and automated event isolation chamber system ensuring operational safety and continuity

Includes advanced R&D, rapid prototyping, and testing laboratories

Highly secured and controlled environments for protection of our people and products

Designed to embrace a Lean Enterprise and Six Sigma approach across all activities

Business sensible green building

Security of Supply

Business Recovery Plan: In the event of a disaster or catastrophic event, a comprehensive business recovery plan is maintained; critical, redundant equipment is stored offsite for expedited resumption of full production

Supplier Management Process: Ensures the uninterrupted flow of incoming materials and required services

Risk Assessments: Regularly conducted to ensure adequate controls are in place and all potential scenarios are evaluated

Designed-in safety controls and redundant facility infrastructure

Powering Critical Applications

12 Electrochem Confidential

Electrochem Confidential

The Leader in Battery Solutions for Critical Applications

13

Energy

Downhole Drilling

Pipeline Inspection

Marine Seismic Surveying

Military

Communications & Surveillance

Avionics & Sensors

Environmental

Oceanographic Systems

Detection & Monitoring

Industrial/Utility

Electrochem Confidential

Solutions

14

Primary Cells

Primary Battery Packs

Secondary Battery Packs

Secondary Battery Chargers

Primary Battery Technology

15 Electrochem Confidential

PacksCells

Electrochem Confidential

Cells

Electrochem makes a broad range of sizes and types of cells

16

Rate Capabilities Temperature Ranges Typical Capacities

Low RateMemory back-up

Moderate RateDown hole power (current industry

standard)

High RatePipeline inspection, seismic surveying,

oceanographic, aerospace, etc.

< 100C PIG, military/aerospace, oceanographic, etc.

AA 1.5Ah

C 6.0Ah

D 12Ah

CC15Ah

DD 29Ah

TSD 40Ah

< 150C Majority of Oil & Gas drilling

< 165C Oil & Gas drilling

< 180C Deep Oil & Gas drilling

< 210C Ultra-deep Oil & Gas drilling

Cell Chemistries

Thionyl Chloride (SOCl2) Widely used in downhole market Excellent performance at high temperatures Open circuit voltage = 3.67 V

BCX (SOCl2 with BrCl additive) Enhanced performance and safety at very low

temperatures Developed for use on Space Shuttle missions,

also used in oceanographic applications Open circuit voltage = 3.9 V

Sulfuryl Chloride, or CSC (SO2Cl2) Highest energy density Best performance is obtained at moderate

temperatures, but also used in some high temperature downhole applications

Open circuit voltage = 3.93 V

17 Electrochem Confidential

Electrochem Confidential

Cell Construction

18

Low Rate

Bobbin design: simple and rugged

Small cell sizes, memory back-up and similar applications

Moderate Rate Dual Anode

Modified bobbin design with second layer of anode: simple & rugged, but higher rate capability

The workhorse of Electrochems downhole offerings: in widespread use for more than 25 years

High Rate Spiral

Higher surface area electrodes

Ruggedized designs (MWD, WR) can withstand downhole shock & vibration

High rate cells include an inaccessible external fuse

Custom Pack Examples

19 Electrochem Confidential

Energy MWD/LWD Operations Energy Pipeline Inspection

Environmental Subsea Surveillance Military Primary Power

Operational Excellence

20 Electrochem Confidential

Quality Systems / CI Focus

21 Electrochem Confidential

Plan

Quality System Controls

Do

NPI / Production

Check

Monitoring

Act

Improvement

Quality System Controls Change Management Risk Management Validation Spec Concurrence Product Development Process Equipment Management Process Control Training

Monitoring Nonconformance Management Gate Calls Customer Feedback and Complaints Production Data and Trending Equipment Performance Operational Efficiency Internal Audits

Improvement Corrective Action Kepner-Tregoe Projects Quick Fixes Eagle Eye Program Kaizen

Electrochem Confidential

Safety-Based Culture

Behavioral Based Safety Program

Observation based program promoting proactive safe behavior before incidents, or near misses, occur.

Associates are trained to observe peers and provide immediate, effective, safety feedback. Observations are c