Advanced Materials in EuropeA case for action

Industrial Technologies 2012June 20th Aarhus (DK)

Dr Marc Van SandeExecutive Vice-President Energy MaterialsUmicore

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Introduction to Umicore group

We are a global materials technology company

Our mission is to make “materials for a better life”

The majority of our growth comes from clean technologies, i.e. technologies

specifically designed to optimize the use of natural resources and reduce

environmental impact

We are listed on NYSE / Euronext Brussels with a market capitalization of some €

4.5 billion

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Umicore’s business approach

We transform metals into hi-tech

materials

We use application know-how to

create tailor-made solutions in close

collaboration with our customers

We close the loop and secure

supply by recycling production

scrap and end-of-life materials

We aim to minimize our environmental

impact and be the best employer and

neighbour

materialsolutions

Metals

Applicationknow-how

Recycling

Materialsolutions

ChemistryMaterial science

Metallurgy

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Umicore’s development fits with megatrends

Electrificationof the automobile

Resourcescarcity

More stringentemission control

Renewableenergy

We are the largest recycler of precious metals; we are able to recycle more than 20 different metals

We are a leading producer of key materials for rechargeable batteries for laptops, mobile phones as well as electrified vehicles

We provide catalysts for 1 out of 3 cars in the world as well as for trucks & non-road vehicles

We supply key innovative materials for high-efficiency solar cells and other photovoltaic applications

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Umicore in figures

Geographic spread of sales (2011)Financials

56%

16%

4%

22%

2%

Europe North America

South America Asia Pacific

Africa

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80% of Umicore’s R&D (*) investment is in the clean tech domain

emission control

recycling

rechargeable batteries

photo- voltaics

fuel cells

Innovative technologies specifically designed to optimize the use of natural resources and to reduce environmental impact

(*) 7 % of revenues

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Efficient production and use of energy will further boost demand for technology metals

Fuel CellsFuel CellsLight Emitting Diodes (LED)Light Emitting Diodes (LED)

Photovoltaic (solar cells)Photovoltaic (solar cells) Electric vehicles & batteriesElectric vehicles & batteriesGermaniumGermaniumGalliumGalliumSeleniumSeleniumIndiumIndiumTelluriumTelluriumSilverSilver……

LithiumLithiumCobaltCobaltNickel Nickel Rare Earth ElementsRare Earth ElementsCopperCopper……

GalliumGalliumIndiumIndiumGermaniumGermaniumSilverSilver……

Platinum Platinum IridiumIridiumCobaltCobalt……

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Criticality for EUThe EU Raw Materials Initiative

Materials for which a threat to supply could involve harm to the national economy, and for which the risk is higher than for most other raw materials in the coming 10 years

Source: Critical Raw Materials for the EU – European Commission Enterprise & Industry, July 2010

Critical materials (EU):Be, Co, Ga, Ge, In, Mg, Nb, PGM, REE, Sb, Ta, W, fluorspar, graphite

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Resource efficiency needed to deal with scarcity of technology metals

materialsolutions

Metals

Applicationknow-how

Recycling

Materialsolutions

ChemistryMaterial science

Metallurgy

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Advanced materials are strategic to Europe to address competitiveness & societal challenges

Advanced materials is a key enabling technology (KET) for EU

Contributing to economic growth & employment in EU through innovative products Strengthening & dynamizing existing European value chains (often at their basis) Creating new jobs and competitiveness by enabling follow-through applications Enabling development of products & solutions to address societal challenges

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EU is facing growing global competition in field of advanced materials

Difficult to match investment project

incentives available in competing

regions Other regions strongly focus on

strategic manufacturing capacities to

fight off competition EU’s competitors focus on turning

basic science into advanced

products & processes EU does the basic research, others commercialize Asia is moving up traditionally EU value chains due to fast catch up in innovation EU faces challenges in access to critical raw materials

(needs for recycling & substitution)

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EU needs to reinforce and develop its assets in order to compete

EU must rebalance resources & objectives to retain critical capability & capacity

EU must reinforce & rapidly develop strategic sectors in order to compete

EU has considerable assets in global

advanced materials competition EU features leading research &

technology organizations and industrial

leadership in several application sectors EU is still strong in global race for

knowledge creation and patents (2nd) The disconnect between R&D

and innovation (manufacturing and

commercialization) is well presentGlobal patent and manufacturing shares for Li-ion batteries

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Competitiveness of advanced materials will benefit from more integration at EU level

“Valley of death” between knowledge generation and commercialization Leading to relocation of manufacturing and R&D, disruption of value chains,

impact on sustainability of EU strategic sectors

Crossing “valley of death” in EU requires 3 pillars

Technological facilities to transform

science into proprietary competitive

technologies

Pilots lines to demonstrate

relevance of technologies into

delivering competitive products

Competitive manufacturing to

create and maintain globally

competitive industries

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Bridging the “valley of death” will require EU strong attention to various areas

Make “advanced materials” one of EU technological priorities in Horizon 2020

Build 3 strong pillars of the innovation chain (public & private investments)

Rebalance RDI funding towards innovation activities

(technological research & product development incl. pilot lines, demonstrators)

Define & implement a strategic industry-driven & coordinated approach at EU level

Combine funding mechanisms (Industry, EU, MS) & establish appropriate rules

to implement funding programmes

Develop globally competitive IP policies to ensure ownership and exploitation of IP

Build, strengthen and retain skills on “advanced materials” at EU level

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For Horizon 2020, a PPP on advanced energymaterials is being proposed to EU

In order to implement the SET plan (Strategic Energy Technology) materials roadmap,

30 organizations (15 leading materials companies) from 10 different EU countries

came together to found EMIRI association

EMIRI (Energy Materials Industrial Research Initiative) will provide guidance, focus,

direction and commitment to achieve commercially successful development of value

added energy materials for energy applications

EMIRI will enable actors from

public & private sectors to work

more effectively at EU scale with

resources beyond critical mass to

reach excellence in research &

innovation on energy materials

VAM: Value added materialsEERA: European Energy Research Alliance

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Take-aways

Advanced materials are strategic to Europe to address competitiveness &

societal challenges But EU is facing growing global competition in that technology field

And needs to reinforce and develop its assets in order to compete

Competitiveness of advanced materials will benefit from more integration

at EU level and strong EU attention to various areas to bridge

the “valley of death”

Advanced materials industry is moving and proactive with the

proposal to EU of a PPP on advanced energy materials