© 2021 Amsted Graphite MaterialsBUSINESS CONFIDENTIAL
SECURING THE
SUPPLY CHAIN OF
THE ELECTRIFIED
FUTURE.
October, 2021
SECURING THE SUPPLY CHAIN
OF THE ELECTRIFIED FUTURE.
Ian McCallum, VP Sales & Marketing
AMSTED GRAPHITE MATERIALS© AMSTED RAIL COMPANY, INC. 2021
Introduction to Amsted Industries
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+18,000 employees driving industrial innovation
• Privately held and employee owned: Headquartered in
Chicago, Amsted has been an ESOP since 1985
• Manufacturer of industrial components in four major
segments: Industrial, Automotive, Commercial Vehicle, and
Railroad
• Annual sales ~ $4 billion
• Rich heritage of innovation dating back to 1902 when
Griffin wheel was first listed on NYSE
• Amsted’s relationship with the Clarksburg, WV plant is +70
years.
• In early 2020 Amsted Graphite Materials (AGM) was formed
after Amsted Industries acquired a former Union Carbide/
GrafTech International facility
• Amsted has heavily invested in the facility: improving the
environmental footprint, investing in people, funding
operations and facility improvements.
Critical Amsted Rail businesses depend on synthetic graphite
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Amsted is the world’s largest supplier of freight rail wheels
Amsted Graphite Materials enables much more than rail wheels…
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Synthetic graphite is a mid-stream input in a wide range of strategic industrial manufacturing
Battery Anode Manufacturing
• Dedicated Anode buildings (~220,000 SQF).
• Graphitization center of excellence with 53
Acheson furnaces.
• Quality assurance laboratory and ISO 9001:2015
Certification.
• Post-processing capabilities under development.
Clarksburg, West Virginia Specialties Manufacturing
• Fully integrated synthetic graphite manufacturing
operations on 106 acres, including mill, mix and
forming through graphitization and finishing.
• Extensive product portfolio including extruded and
molded.
• Recently re-started iso-molded development and
production to meet sensitive domestic demand
• Over 40 years of success supplying wide variety of
critical infrastructure needs, including military and
defense applications
• Missile components
• Ablative plates
• Solid rocket booster components
• Others …
Graphitization center of excellence
~140 employees
Pilot scale Anode production
Amsted Graphite Materials has over 115 years of established operational excellence
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Vast experience supplying critical infrastructure, including defense, aerospace, nuclear,
critical materials & metals manufacturing, electronics and more.
AGM Ideally Positioned for Supply Chain Localization
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AGM in West Virginia is at the geographic epicenter of the US LIB Cell manufacturing,
minimizing delivered cost
Tesla Giga 1
(Reno, NV)
Tesla Giga Texas
(Austin, TX)
AESC / Envision
(Smyrna, TN)
SKI
(Commerce, GA)
GM / LG Chem ‘Ultium 1’
(Lordstown, OH)
IM3 / C4V
(Endicott, NY)
LG Chem
(Holland, MI)Xalt
(Midland, MI)
Farasis
(TBD)
Clarios
(Milwaukee, WI)
EaglePicher
(Joplin, MO)
Tesla Fremont
(Fremont, CA)
Enersys
(Reading, PA)
Microvast
(Clarksville, TN)
Saft
(Jacksonville, FL)
Samsung SDI
(Auburn Hills, MI)
GM/LG Chem ‘Ultium 2’
(TN)
100%Share of Acheson capacity
in North America
>3,000 °CProcess temperature
5,000mtpa anode powder capacity
Unique Competency: Acheson Graphitization Process
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Standard Process Among Industry Leaders
High Purity Product
High Quality via Stability and Repeatability
High Throughput
Premium product performance for EV-grade powder is a key advantage
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A re-engineered process delivers premium performance necessary for EV-grade applications.
Capacity retention head to head with industry
best.
Demonstrating industry best range for high
Cycle Efficiency. [longer battery life]
Low irreversible volume expansion [swelling]
for improved safety & quality
Product portfolio is focused on e-mobility segment today
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Future evolutions to lower cost, broaden portfolio and improve performance
High Capacity and
Capacity Retention
Cycle Life and
Calendar Life
C-rate and
discharge
IN PRODUCTION –
FULLY QUALIFIED
(includes Tolling)
IN CUSTOMER
QUALIFICATION
(2022-23)
EARLY STAGE
DEVELOPMENT
(2023-24)
R&D CONCEPTS
(2025-26)
Raw Materials (Specifications, Blends)
Next Gen Processes
Performance Additives (Coatings, Additives)
Technology Roadmap
TS-9300
TS-9500
TS-9700
Synthetic Graphite
Anode Power
Application/ Customer
Specific Variants &
Co-Developed Product
Different Coating &
Blended Versions
Si – Additives, Si
Coating and new
Process Technology
Production
costs on par
with Asian
exporters Strategically
located in the
US automotive
manufacturing
corridor
Largest US
manufacturing
capacity
Amsted
baseload
demandThe only fully
integrated
graphite
manufacturer in
the US
Over 115 years
of graphite
expertiseSynthetic
Graphite for
Fast charging,
cycle
performance &
longevityCompatibility
with evolving
anode
materials &
designs
High purity
product via
Acheson
graphitization
process
(+3000°C)
Amsted Graphite Materials – Anode
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Defining Characteristics
Domestic
Supply Chain
Product
Performance
Stability &
Security
Meeting the Domestic US Battery Materials
Industry Challenges
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The electrified
future demandswestern
hemisphere
anode supply.
• Accelerating EV and Energy Storage Mega-
Trends will drive unprecedented demand for
batteries and battery materials.
• Graphite is essential for Lithium-Ion
batteries, making +96% of anode material.
• Long-Life batteries need high purity, high
consistency anode material that only
synthetic graphite can deliver.
THE OPPORTUNITY
Proven, premium products
targeting a full spectrum of battery
applications.
• Supply of high-performance anode material
is 100% reliant on Asia, primarily China.
• Decarbonizing the supply chain and offering
technically superior, lower emissions
solutions is a critical factor.
• Capital required to meet scale of demand
and rate of growth
• Cost, safety and supply security are critical
factors to customers.
‘Blue Chip’ supplier with over 115
years of history supplying
specialty graphite.
Fully domestic supply chain with
US sourced raw material and
manufacturing locations.
Targeting low carbon footprint
powering and world-class ESG
signature.
Leading government advocacy
efforts with a record of policy
influence.
THE CHALLENGE
THE SOLUTION
Looking Ahead: Graphite Demand Sees Highest Growth Among LIB Materials
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3.8M Tons
2.8M Tons
0.9M Tons
Total Graphite
Demand
(1.9M T SG @50%)
(1.45M T SG @50%)
(450K T SG @50%)
Today’s battery anode supply chain is completely dominated by China.
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Western Governments and OEMs have begun to take note of the supply chain risk.
¹USSenate.gov – Senate Testimony
² DOE Critical Minerals and Materials Strategy, 2021
³Benchmark Mineral Intelligence, Synthetic Graphite 2021
⁴SGL Carbon News ⁵Financial Times, China’s Graphite Crown in EV Batteries, 2020
• Almost all stages of the lithium-ion
battery manufacturing chain are
focused on China. All high output EV
batteries on the market today utilize
synthetic graphite from Asia. ¹
• Financial Times reports that “There's
the potential of [China] stepping up
supplies and bringing down prices to
drive foreign rivals into a corner, just
like they're doing with rare earths.” ⁵
• The IPCEI awarded SGL Carbon a
€42.9M grant from rom the German
Federal Government and the Free State
of Bavaria to develop anode materials
for Lithium Ion Batteries⁴.
Global graphite supply is dominated by Asia³.
The DOD is also rapidly shifting to electrification and battery powered systems.
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A secure battery supply chain divorced from adversarial influence is required to ensure mission resilience.
¹ WhiteHouse.gov – WH 100-Day Supply Chain Report
² Energy.gov – Federal Consortium for Advanced Batteries –
National Blueprint
“… the rising demand and diversity of
applications for lithium battery
technologies make the future strategic
concerns even more important. To meet
maritime, surface, undersea, space, air,
and ground operational requirements,
DOD will need reliable and secure
advanced battery technologies.”
“A secure supply chain divorced from adversarial influence is required to
ensure mission resilience. A broader domestic and allied industrial base,
assured material supply, and stronger R&D ecosystem would improve the
fragility of the existing defense supply chain.”
“DOD prefers domestically sourced, high-
density energy storage to support agile
forces utilizing power-hungry propulsion,
communications, sensors, and weapons.”
“The military requires
thousands of unique types of
batteries each year resulting in
over $200 million in annual
procurements from the Defense
Logistics Agency (DLA). In
addition, this data accounts for
only a portion of overall annual
demand from across DoD,
which includes numerous
program-specific procurements
across each of the services.”
“While lacking a formal estimate, DoD believes demand for these
batteries will grow, not just from…combat platforms, weapons,
sensors and individual warfighter equipment, but also from the
hybridization of the combat platforms and introduction of tactical
microgrids.”
The DOD’s demand for batteries is rapidly rising … ... as is the need for a secure domestic supply chain
The US has begun to take notice…
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Battery Materials are increasingly seen as key to our National Supply Chain Security
July 2020
Biden releases Build
Back Better Plans;
Congressional
Critical Materials
Caucus is launched
Dec 2017
President Trump
announces Executive
Order on critical
minerals
Feb 2018
USGS publishes a list
of 35 critical minerals
June 2019
The Trump
Administration
releases a critical
minerals strategy
Jan 2020
The U.S. and Canada
sign a joint critical
minerals plan
Sep 2020
The Trump Admin
releases a new
critical minerals and
materials Executive
Order
May 2019
Senate Energy and
Natural Resources
leadership introduce
the American Minerals
Security Act
Sep 2020
The Federal
Consortium for
Advanced Batteries is
launched
Dec 2020
DOE releases the
Energy Storage
Grand Challenge
Roadmap
February 2021
Biden Admin releases
Executive Order 14017
on America’s Supply
Chains
July
A Bipartisan group of
Representatives introduce
the Battery Material
Processing and Component
Manufacturing Act
August
Senate passes the $1T
bipartisan infrastructure
package, including $6B
for battery processing
and manufacturing
June
BMTC hosts a roundtable
with CABC; BMTC holds a
briefing with Critical
Materials Caucus
June
FCAB releases the
National Blueprint for
Lithium Batteries; DOE and
DOD release their 100-Day
Supply Chain Reviews
May
Biden announces that
grants for battery
manufacturing are part
of his Jobs Plan during a
visit at a Ford EV plant
May
BMTC hosts a panel
discussion for the House
Manufacturing Caucus
April
Biden announced his
Infrastructure Plan in PA
– which included $175B
for Evs
February-April
Active Congressional
engagement on the Clean
Futures Act, LIFT Act,
GREEN Act, and Endless
Frontiers Act
Amsted launches government advocacy efforts in 2019. Focused advocacy and education for key policy makers.
Amsted creates the BMTC in 2020 as the voice of the upstream and midstream battery supply chain.
What does Advocacy look like?
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Introducing the BMTC, Battery Materials & Technology Coalition
Amsted launched the BMTC (Battery Materials & Technology Coalition) in 2020 as the voice of the upstream and
midstream battery supply chain. Member companies are united behind a shared interest in growing a North American
supply chain. The advocacy group is comprised of companies that mine, extract, process, and recycle battery materials as
well as develop cathode, anode, and battery technology enhancements. BMTC members are established companies in the
U.S. and Canada looking to ensure that North America does not bypass the opportunity to be a leader in a growing global
battery market and electrified economy.
Investment assistance is critical to establishing commercial production before
foreign incumbents move in
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Significant capital investment is required to meet scale of battery industry demand
Amsted encourages government support EV-scale expansion of our Battery Anode operations
• Amsted’s existing assets and proven production infrastructure is a key first-mover advantage
• AGM is at the center of the electric transportation ecosystem, serving as one of the only anode materials
suppliers in North America.
• Pilot scale facility and R&D center are in motion, supporting up to 5,000 tons of capacity annually. AGM
has invested in key infrastructure and begun to staff.
• Expansion plans underway to build 30,000 tons of capacity annually.
Specific industry-level investments are required secure the US supply chain for Battery Anode
• Traditional government assistance strategy of focusing almost exclusively on long-term R&D will not
achieve domestic supply independence fast enough, and will only further entrench Chinese incumbency.
• Instead, we recommend government investments in the battery materials sector be balanced with the
R&D approach to target near term production-ready opportunities in the mid-stream materials conversion
processes at a large scale.