April 6, 2011

Samsung SDI

Energy Storage Systems

Update

ERPI Renewable Energy Council

150kWh LIB-ESS in Jeju Island

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Samsung

• $173B & $14B in ‘09 Revenue & Net Income

• 280,000 employees in 67 countries

• 470 offices and facilities

• 19th best global brand*

* Interbrand

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• Electro-Mechanics• SDI• Corning Precision

Glass• SDS• Networks• Techwin• Mobile Display• Digital Imaging

Electronics

Industries

(57%)

Machinery &

Heavy Industries

(4%)

Chemical

Industries

(4%)

Financial

Services

(19%)

Other

(16%)

• Total Petrochemicals

• Petrochemicals

• Fine Chemicals

• BP Chemicals

• Life Insurance

• Fire & Marine

Insurance

• Card

• Securities

• Investment Trust

Management

• Venture Investment

• C&T Corporation

• Engineering

• Chiel Industries

• Everland

• Shilla Hotels & Resorts

• Chiel Worldwide

• S1 Corporation

• Medical Center

• Human Resource

Development Center

• Economic Research Inst

• Lions

• Foundations

• Heavy Industries

(% total revenue)

Samsung affiliated companies

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• Memory systems

• Liquid crystal displays (LCD)

• Appliances• Televisions• Mobile phones

• $140B

• Ji-sung Choi

Samsung

Electronics

Samsung

SDI

Samsung

Electro-

Mechanics

Samsung

SDS &

Networks

Samsung

Mobile

Display

• Memory chips, printed circuit boards & network materials

• Light emitting diodes & optical components

• $6.5B

• Jong-Wu Park

• Glass for CRT, LCD, PDP, ferrite, fusion glass

• $5.0B

• Hun-Sik Lee

• Active Matrix Organic Light Emitting Diode (AMOLED)

• Mobile thin film LCD

• Touch screen panel

• SEC & SDI JV

• Ho Moon Kang

• Lithium ion batteries

• Plaza display panel (PDP)

• Cathode ray tubes (CRT)

• $5.1B

• San-jin Park

Samsung

Corning

Precision

• eBusiness integration, IT consulting, optical networks

• VPN services

• $3.9B

• Sung-dong Koh

Products

& Services

„09 Revenue

CEO

Affiliate

Samsung Electronics affiliates

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Samsung SDI

Lithium ion

batteries

Cathoderay

tubes

Plasmadisplaypanel

SamsungMobileDisplay

SBLiMotiveCo

• Integrated with Samsung Electronics since July ‘08

• JV with Bosch since Sept ‘08

• JV with Samsung Electronics since June ‘09

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Fastest growing major LiB company

30% CAGR Sales growth

(M cells)

Key milestone

• Business started (‘00)

• Highest capacity polymer LiB (‘03)

• 1st 2.6Ah cylindrical LiB (‘05)

• 1st 3.0Ah cylindrical LiB (‘08)

• SBLimotive established (‘08)

• 1st LFP 50Ah commercialized (‘10)

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17

38

65

80

'04 '07 '09 '10

Capacity( MM cells / month)

• 90% of manufacturing equipment designed internally

• Fastest production

– Samsung

– ‘07 … 200 ppm

– ‘10 … 300 ppm

– Others

– ‘09 … 200 ppm

Leading manufacturing capability

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[Source] IIT (Institute of Information Technology (Japan)

‘04 ‘07 ‘09 ‘10

Samsung

SONY

LG

Samsung

Sanyo Sanyo

SONY

LG

Sanyo

Samsung

SONY

LGSamsung

SONY

Panasonic

Sanyo1

2

3

4

LiB market share (cells)

Samsung market share growth

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Notebook PC

Power Tool

Mobile Phone

Electric Vehicle

Energy Storage System

Applications & Customers

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• Purpose

– Maintain a constant

grid frequency

– Grid stabilized

back-up power

(spinning reserve)

• Power … MW+

• Discharge time

… 15 min (4C)

• Driver … renewables

Peak Shifting

• Purpose

– Alternative to peaking

gas power plant in

urban areas

– Renewable peak

shifting

• Power … MW+

• Discharge time

… 1-2hrs ( 0.5 -1C)

• Drivers …

renewables,

demand response

• Purpose

– Neighborhood

back-up

– Local peak shifting

– Power quality

• Power … 25 kW

• Discharge time

… 1-3 hrs (1- 0.3C)

• Drivers …

distribution stability,

electric vehicles,

residential

renewables

CommunityEnergy Storage

• Purpose

– Energy arbitrage

– Renewable capacity

firming

• Power … MW++

• Discharge time

… 4-7hrs (0.25~0.14C)

• Drivers …

available off peak

baseload

Load Leveling

• Purpose

– Residential back-up

– PV integration

• Power … 3-10kW

• Discharge time

… 1-3hrs (1- 0.3C)

• Drivers …

photovoltaic,

electric vehicles,

net zero emission

homes

ResidentialEnergy Storage

ESS utility applications

Frequency Regulation

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LIBpenetration

(%)12 21 23 29 42

(GW)

Frequency regulation & spinning leserve

Community & residential energy storage

Peak shifting

Level loading

‘10 ‘20‘13‘11 ‘15

17.9

5.3

4.6

5.6

7.7

2.5

1.3

2.2

3.2

1.20.2

1.2

13.7

5.8

1.80.8

33.4 • Majority of current projects are demonstrations with subsidies

• Significant potential for ESS exists … 0.8 to 33 GW from ‘10 to ’20

• Timing of significant market growth uncertain

– Cost of ESS and LiB vs alternatives

– Significant renewables / PV penetration

– Regulatory support

– GHG regulations

Energy storage system forecast

Source: Pike Research, Fuji Keizai & Samsung

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Frequency Regulation

Current product line

CommunityEnergy Storage

ResidentialEnergy Storage

Power

Energy

Dimension

Weight

2 MW

0.5 MWh

45 ft container

22.4 tons

25 kW

25 kWh

1.2 x 0.7 x 0.6 m

0.7 tons

3 kW

10 kWh

0.7 x 0.9 x 1.3 m

230 kg

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• Demonstration test-bed to be established in ‘11

• Smart Grid project for integrating transportation,

renewables & home

• 6,000 households … world’s largest & most comprehensive

2. Smart

Place

1. Smart

Power Grid

3. Smart

Transportation

4. Smart

Renewable5. Smart

Electrical Service

1

1

Jeju Island,Korea

• Population … >560K

• Area … 1,846 km2

Smart Grid Project

Jeju Island Smart Grid

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Smart Place (Residential)

Smart Transportation

• Residential ESS for photovoltaic smoothing

• Installation … 1 set Nov ’10, 20 set April ‘11, 30 set ‘12

• 3kW / 7kWh• 50 cells, LFP 50Ah

• Grid stabilization and fast charging

• November ‘10 installation• 1 x 600kW / 150kWh• 960 cells LFP 50Ah• 20ft container

Korea Smart Grid Week, Jeju Island, Nov ‘10

ESS Jeju Island Smart Grid

• Wind peak smoothing &

shifting

• May ‘11 installation

• 1 x 800 kW / 200 kWh

• 1,2860 cells, LFP 50 Ah

SmartRenewables

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• 1st national residential ESS project

• 3kW / 10kWh ESS with roof-top PV

• Installation by 10 sets (Aug ’11), 90 sets (‘12)

Residential ESS Project … ESS with PV

Daegu City,Korea

Residential Energy System & Grid System

• Population … >2.5M

• Area … 884.2 km2

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Naebyeong Island,Korea

• Population … 37 people

• Area … 0.97 km2

LiB replaces lead acid ESS

Naebyeong Island lead acid replacement

60 kW photo-voltaic system

Lead acid batteries LiB batteries

January ‘10 replacement

due to lead acid

maintenance

• 49kW / 390kWh

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Net Zero Energy House

• Yongin City, Korea

• Incorporates 68 eco-friendly

technologies

• Samsung SDI provided 4 green

energy solutions

• December ’09 installation

• 10Ah, 36V

• 2.4Ah cylindrical, 28kW / 28 kWh

Samsung‟s “Green Tomorrow”

• 30 sheets, 400 x 370 mm

• 200W, 12-14V

Energy Storage System

E-BikeDye-Sensitize

Solar CellsPolymer Electrolyte

Fuel Cell

April 6, 2011

Samsung SDI

Energy Storage System

Update

ERPI Renewable Energy Council

150kWh LIB-ESS in Jeju Island