Acpw Batteries

Advanced Lead-Carbon PbC® Batteries

Piper Jaffray Clean Technology and Renewables Conference

January 12, 2011

Thomas Granville, CEOThomas Granville, CEOAxion Power International Inc.,

New Castle, PA, USAwww.axionpower.com

Advanced Lead Acid Batteries for Tomorrow’s Demanding Energy Needs

Safe Harbor

Certain statements in this presentation are "forward-looking statements" within the meaning of the Private Securities Litigation Act of 1995. These statements i l d i h li i i i h C ' biliinclude, without limitation, statements concerning the Company's ability to expand its manufacturing capabilities and bring its new PbC® based battery products to market, the Company's belief that its completed products will be the only class of advance battery of its kind and that it will be a viable replacement for older generation lead-acid batteries These forward-looking statements arefor older generation lead-acid batteries. These forward-looking statements are based on our current expectations and beliefs and are subject to a number of risk factors and uncertainties that could cause actual results to differ materially from those described in the forward-looking statements. Such risks and uncertainties include the risk for the Company to complete its development work, as well as p y p pthe risks inherent in commercializing a new product (including technology risks, market risks, financial risks and implementation risks, and other risks and uncertainties affecting the Company), as well as other risks that have been included in filings with the Securities and Exchange Commission, all of which are available at www sec gov We disclaim any intention or obligation to revise anyavailable at www.sec.gov. We disclaim any intention or obligation to revise any forward-looking statements, including, without limitation, financial estimates, whether as a result of new information, future events, or otherwise.


2

Manufacturing and Development Facilities

Battery Manufacturing Facility(75 000 sq ft )

Electrode Automation Facility(45 000 sq ft )


(75,000 sq. ft.)(45,000 sq. ft.)

3

Energy Storage Processes

electrode solution electrode solution

e- + e- +

HybridAsymmetric

DeviceCapacitor Electrode Batter ElectrodeDevice

Microporous Activated Carbon Negative

+

Capacitor ElectrodeNon-Faradaic

Surface ChargeAdsorption Processes

El t t ti

Battery ElectrodeFaradaic

Bulk ProcessesPhase Transitions

Hi h E+Lead Dioxide Positive

ElectrostaticHighly Reversible

Higher Energy

“multi-celled asymmetrically supercapacitive lead-acid-carbon hybrid battery”


y y p p y y

4

PbC ® Battery Manufacturing

Standard VRLA CellStandard VRLA Cell(“Lead-Lead”)

PbC ® Cell(“Lead-Carbon”)


5

Hybrid Electric Vehicles

• Micro Hybrid Stop/StartEstimated 12-18 million vehicles by 2016 (US and Europe)Production increases driven by legislation:

• Europe: 130 gCO2/km (42 mpg)• US: 250 gCO2/mi (36 mpg)

HYBRID VEHICLES ELECTRICVEHICLES

g 2/ ( pg)

CURRENT CARS

MICROHybrid

MILDHybrid

FULLHybrid

EV PHEV

FULL ELECTRIC DRIVECAPABILITY (Limited)

STOP/START+REGEN BRAKINGSTOP/START Full ELECTRIC DRIVE

10-100+ MILESExample:


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CO2 Reduction Requirements

Region Date % of Fleet Requirement

NOW 2016 250 CO / i*US NOW 2016(Was 2020) 100 250 g CO2/mi*

(156 g CO2/km)

Europe 2012 65 130 g CO2/km**p g 2

Europe 2013 75 130 g CO2/km**

Europe 2014 80 130 g CO2/km**

Europe 2015 100 130 g CO2/km**

Europe Long term (2020?) 100% 95 g CO2/km


*- Current US average fleet fuel economy = 20 MGP- 250 g CO2/mi = 156 g CO2/km = 35.5 MPG

**-130 g CO2/km = 42.4 MPG7

VOLUME AV CO2 AV CO21st Half-09 1st Half-08 1st Half-09 CO2 DIFF

BRAND # Units (g/ km) (g/ km) (g/ km)FIAT 535,590 134.3 129.1 -5.2,MINI 65,559 133.9 129.7 -4.2TOYOTA 358,982 146.5 132.9 -13.6LANCIA 61,776 136.1 134.1 -2.0PEUGEOT 500,880 138.5 134.5 -4.0Have Major

Problems SoonHYUNDAI 168,260 151.6 138.8 -12.8CITROEN 437,781 141.7 138.8 -2.9RENAULT 517,783 142.7 138.9 -3.8FORD 664,582 148.4 140.4 -8.0CHEVROLET 95 564 156 8 141 6 15 2

Problems Soon

CHEVROLET 95,564 156.8 141.6 -15.2SEAT 166,110 146.0 142.4 -3.6SUZUKI 134,014 158.3 144.9 -13.4HONDA 132,360 154.5 146.5 -8.0KIA 128,296 153.4 148.9 -4.5

Have Major Problems Now ,

OPEL 434,218 150.5 149.5 -0.9SKODA 245,471 149.3 149.9 0.7MAZDA 108,429 161.4 151.2 -10.2VAUXHALL 122,019 155.8 152.3 -3.5DACIA 95 036 153 1 152 4 0 6

Problems Now

DACIA 95,036 153.1 152.4 -0.6VOLKSWAGEN 838,117 159.4 152.5 -7.0BMW 285,023 160.7 158.4 -2.2NISSAN 159,311 164.5 158.9 -5.6AUDI 323 256 177 0 162 6 -14 4


AUDI 323,256 177.0 162.6 -14.4MERCEDES 298,491 185.6 178.8 -6.8VOLVO 99,726 180.4 179.0 -1.4Total Volume / Average CO2 6,976,634 152.3 146 -6.2

Current OEM Developments

• OEMs focused on VRLA or improved floodedSOC difficult below 0ºCVoltage drop-out during startVoltage drop out during start2 battery systemsCurrent micro hybrid only 2-4% more efficient

• Ideal battery solutionHIGHER CHARGE ACCEPTANCE 100+ Amps

• More frequent start/stop• Regenerative braking• 10%-15% fuel efficiency improvement


9

Micro Hybrid Stop/Start Event

Recovery ChargeLimited Sustained Charge

14.8 Voltage Limit150 A Current Limit

150 A

Variable Time to Recovery(Depends on Battery)

100 A

20 A50 A

START300 A; 1 sDischarge

22s 33s 66s 165s

STOP50 A; 60 sDischarge

Discharge


10

Micro Hybrid Test (mDCAT)

DKE Test EN-50342-6[Deutsche Elektrotechnische Kommission](German Electrotechnology Commission)

Co-developed by Axion Technologies and BMW


11

VRLA Micro Hybrid Test Results (mDCAT)

~10,000 cyclesequivalent to

one year driving

OEM target:

y g

OEM target: 100-150A

Charge timeincreases rapidly

Charge acceptanceCharge acceptancedecreases rapidly


Lead Negative Charge Failure

• Lead negative haslow charge efficiency

P l i tiPolarizationGassing (hydrogen)


13

Lead Negative Charge Failure

50% SOC(Rest)

50% SOC(Charge)

• PbSO4 must first dissolve to provide

PbPbSO4

( ) ( g )

e-

Pb

dissolve to provide Pb2+ (A)

Pb2+ th b (B)

Pb2+Pb2+

• Pb2+ can then be reduced to Pb (B)

( )

SO42-• Available Pb2+ is

rapidly limited during testing

(A)

during testing


14


15

PbC® Micro Hybrid Test Results (mDCAT)

Performance stable40,000+ cycles

Constant 100A charge acceptanceg p

Constant ~35scharge timecharge time


Carbon Negative Charge Advantage

• Lead negative haslow charge efficiency

P l i ti

• Carbon negative hashigh charge efficiency

No Pola i ation PolarizationGassing (hydrogen)RAPID SULFATION

No PolarizationNo Gassing (hydrogen)NO SULFATION


17

VRLA vs. PbC® Battery Efficiency

• VRLA charge ffi i defficiency drops

below 70% in only 8000 cyclesy

• PbC® charge efficiency aboveefficiency above 80% and stable


18

Axion Power Cube™ PEDA Project

b• Axion Power Cube™ Battery Energy Storage SystemUtility/industrial energy storage deviceScalable up to 25 MW

Axion Plant 40’ Power Cube™


19


l• ApplicationsPower qualityPower arbitrage

Voltage/transmission supportRenewables integration/smoothing

Outage protectionFrequency regulation

Community Energy StorageResidential Energy Systems

Axion Power Cube™ being commissioned onsite at the Clover facility


Axion Power Cube being commissioned onsite at the Clover facility.

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Custom Battery RackingAxion Power Cube™ being commissioned Custom Battery RackingAxion Power Cube being commissioned onsite at the Clover facility.

Eaton UPS System

Power Bypass and Switch GearEaton UPS (open)


Power Bypass and Switch Gear Eaton UPS (open)

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Axion Power Cube™ Energy Storage

40’ Axion Power Cube™ [PEDA Project]

10’ Axion “Mini”Power Cube™


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Axion Power Cube™ Energy Storage

40’ Power electronics

20’ PbC® Hybrid Battery Modules


23

Battery Assembly Equipment

Automated Plate Stacker equipment commissioned at Clover facility providesat Clover facility provides quality improvements for standard VRLA and PbC®

battery assembly.

Plate Stacker


24

PbC® Electrode Assembly Equipment

Automated Lug Caster For PbC®Automated Lug Caster For PbC®

Electrodes commissionedend of 2010.

Lug Caster

Cutting Tinning Casting


g

25

PbC® Electrode Assembly Equipment

Automated PbC® ElectrodeAutomated PbC Electrode assembly equipment

AGM StackerCommissioned at Green Ridge facility Q1 2011


26

Automated Paste Mixing

Cone FeederNew Cone Feeder

andPaste Mixer

Commissioned at Clover Facility

Paste Mixer

Commissioned at Clover Facility in January 2011


27

Fixed Orifice Pasting

New “State of the Art” Orifice Paster being commissioned at Clover facility January 2011.

AGM StackerFixed Orifice Paster


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Conclusions

• Axion PbC® BatteriesHi h (5 20 ) h Higher (5-20x) charge acceptanceHigher (4x) increase in cycle life80-85% round trip energy efficiency

• These unique properties make Axion PbC®

batteries ideal for: batteries ideal for: Hybrid Vehicle MarketHybrid Locomotive MarketL E S A li iLarger Energy Storage Applications


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OTC BB: AXPW

Advanced Lead-Carbon PbC® Batterieswww.axionpower.com


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