TOM ZHAO Managing Director

SUSTAINABLE DEVELOPMENT STRATEGY

FOR EV BATTERY

What are WE facing today ?

What can BYD do ?

What can WE do more ?

LFP vs NCM

WE WHAT ARE

FACING TODAY ?

LFP & NMC is the mainstream of the market BYD ED Roadmap Rapid Growth of Lithium-ion Battery Cobalt price increased by leaps and bounds

2016 2030

LFP & NMC is the mainstream of the market

Source: Bloomberg New Energy Finance

NCA 10%

NMC (111) 15%

NMC (433) 10%

NMC (532) 10%

NMC (622) 30%

NMC (811) 25%

LMO NCA LFP NMC (111)

NMC (433) NMC (532) NMC (622) NMC (811)

EV

2016 2017-2030

LFP & NMC is the mainstream of the market

Source: Bloomberg New Energy Finance

Storage

Source: Bloomberg New Energy Finance

LFP vs NMC

NMC LFP

E-density Wh/l

E-density Wh/l

E-density Wh/l

E-density Wh/l

E-density Wh/kg

E-density Wh/kg

E-density Wh/kg

E-density Wh/kg

Discharge C-rate

Discharge C-rate

Discharge C-rate

Discharge C-rate

Cycle life Cycle life Cycle life

Cycle life

Cost Cost Cost Cost

Safety Safety Safety Safety

Rapid Growth of Lithium-ion Battery

Source: Bloomberg New Energy Finance. Note: Assumes 100% of stationary is lithium-ion.

0

200

400

600

800

1,000

1,200

1,400

2016 2018 2020 2022 2024 2026 2028 2030

Annual GWh

Electric vehicles

Consumer goods

Stationary storage

Cobalt would meet shortage sometime later

0

50,000

100,000

150,000

200,000

250,000

300,000

350,000

400,000

450,000

Cobalt market (metric ton/year) Demand Other

Demand Storage

Demand CE

Demand E-Bus

Demand EV

Historic supply

Future supply

Source: Bloomberg New Energy Finance, press releases, Avicenne, USGS, IDTechEX, Wealthdaily

Note: CE refers to consumer electronics, E-bus refers to electric buses

Cobalt Price increased more than 3 times in one year

Source: cbcie.com Cobalt ≥99.8% Cobalt ≥99.3%

USD/pound

Source: Bloomberg New Energy Finance. Note: NMC chemistry modelled here is NMC (111). NMC battery pack cost is $223/kWh.

Cobalt is the most fluctuations factor for NMC battery Percentage change in commodity price (%)

-0.5% -0.3% -0.1% 0.1% 0.3% 0.5%1.1% 1.6%

-3.0% -1.7%

-0.8%

0.8%1.7% 3.3% 6.7% 10.0%

-1.0% -0.6%-0.3%

0.3%0.6% 1.1% 2.2% 3.4%

-0.2% -0.1% -0.1% 0.1% 0.1% 0.2% 0.4% 0.6%

-150% -100% -50% 0% 50% 100% 150% 200% 250% 300% 350%

Lithium

Cobalt

Nickel

Manganese

LFP vs NCM

BYD WHAT CAN

DO ?

BYD Strategy

Technology

Upgrading on NMC

Strong Tech. Backup-LFP

Repurpose&

Recycling

Technology

Upgrading on NMC

Strong Tech.

Backup-LFP

Repurpose&

Recycling

Forecast mass of used batteries coming out of electric vehicles

• Notes: ONLY EV • Source: Bloomberg New Energy Finance

Battery Data

311,000 tonne = 25GWH

0

50,000

100,000

150,000

200,000

250,000

300,000

350,000

2016 2017 2018 2019 2020 2021 2022 2023 2024 2025

Unit：tonne

Battery Repurpose & Recycling

xEV Battery System

Module

Repurpose

Cell Recycle

Cell

Module

Cell Material Other Uses

Baolong, Shenzhen Capacity:15MW/30MWH Area:1800 ㎡ Working Condition：3 cycle/day 0.5C Operating time：1700+cycles SOC range: 10%-100%

Changsha Plant Capacity: 10MW/22.6MWH

Area: 2500 ㎡ Working Condition: 2 cycle/day 0.3C

Under Construction

Repurpose - Energy Storage (Utility Scale)

Capacity: 48V/150Ah， Load: 70A

Capacity: 48V/600Ah Load: 60A

Repurpose - Communication Base Station

AGV (Automatic Guided Vehicle) Capacity：12V/150Ah ；24V/150Ah

Repurpose - AGV

Battery disassembling automatically Separation of battery components Positive &negative plate drying & deodorization.

Graphite elution, copper foil recycling. The positive material desorption, aluminum foil recycling

Graphite removing impurity, cladding, regeneration and activation Lithium iron phosphate regeneration: lithium extraction, precursor preparation NMC elements extraction and regeneration

Raw Material Recycling

Battery disassembling take 3 steps

1.Disassembling

3.Regeneration

2. Material Recycling

Raw Material Recycling

Manganese

Nickel Aluminum

Copper Lithium

95%

95%

95%

95%

85%

Cobalt Graphite

95%

98%

Raw Material Recycling

Manganese Nickel Aluminum Copper Lithium

95%

95%

95%

95%

85%

Cobalt Graphite

95%

98%

Gap in the Future

cobalt new supply

Cobalt supply from recycling used batteries

Notes:

1.supposed battery Recycling volume equal battery used volume that year

2. supposed 24 kwh battery contains 10 kg cobalt

3. supposed 24kwh battery equal 0.29 tonnes

4. supposed cobalt recycling rate is 95%

Technology

Upgrading on NMC

Strong Tech.

Backup-LFP

Repurpose&

Recycling

Chinese Government Subsidy Policy

Source: VehicleTrend

Item 2017 China national subsidy standards

2018 China national subsidy

standards Change Remark

Recharge Mileage

100≤R

One Week Drive without Additional Charge Zero Range Anxiety for 400KM

80km /day *5 days=400 km is enough for daily driving

Driving Demand

BYD EV Recharge Mileage

LFP vs NCM

WE WHAT CAN

DO MORE ON LFP?

BYD Commercial Vehicle

BYD Skyrail

BYD Energy Storage

THANK YOU

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