Transcript here - The Chemists` Club

Commercial Evolution
Robert L. Kanode President & CEO
June 7, 2011
“The Power of Lithium & Safety of Phosphate”
Safe Harbor Statement
This presentation contains forward-looking statements within the meaning of the
Private Securities Litigation Reform Act of 1995. Actual results can vary substantially
from these forward-looking statements as a result of a variety of factors. These and
other risk factors that could affect actual results are discussed in our periodic reports
filed with the Securities and Exchange Commission, including our Annual Reports on
Form 10-K and subsequent Quarterly Reports on Form 10-Q and other documents
filed with the Securities Exchange Commission. The reader is directed to these
statements for a further discussion of important factors that could cause actual results
to differ materially from those in the forward-looking statements. We disclaim any
intent or obligation to update these forward-looking statements.
“The Power of Lithium & Safety of Phosphate”
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Our History
1989 Founded in San Jose, CA.
1992 Listed on Nasdaq “VLNC”
1995 Licensed Bellcore “Flat Cell” technology
1998 Manufacture of Bellcore cells, Lithium Cobalt, and
Lithium Manganese
2002 Launched first commercial Lithium Phosphate (LP) Technology
2004 Launched Segway Custom Pack “Exclusive Supplier”
Transition to Commercial Sales
2005 Launched 12Volt U-Charge® Scalable Modules
2007 Launched 18Volt U-Charge® Scalable Modules
2010 Launched 36Volt U-Charge® Scalable Modules
2011 Planned Launch of Next Generation High Power Custom Systems
Extensive Patent Estate Enables Valence to Sell in Major World Markets
“The Power of Lithium & Safety of Phosphate”
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Serving The World
137.4 MWhrs Shipped-to-Date Worldwide
Austin, TX – HQ
Finance, Sales & Marketing, Engineering
Las Vegas, NV
Material Research & Legal
Northern Ireland
EU Sales & Application Engineering
Suzhou, China
Cathode Material, Cell & System Manufacturing
“The Power of Lithium & Safety of Phosphate”
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Global Patent Estate
Total Granted Patents (all categories): 267
US:
Foreign:
132
135
Total Pending Patents (all categories): 167
US:
Foreign:
42
125
Products & Processes Where Patents are Utilized
214 – Lithium Iron Magnesium Phosphate Chemistry
237 – Lithium Vanadium Phosphate Chemistries
67 - Carbothermal Reduction Process (Cathode Manufacturing)
176 - Miscellaneous (Electronics, Software, Pack Engineering, Other Chemistries, Misc.)
“The Power of Lithium & Safety of Phosphate”
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Technology Advantages
Valence Lithium Iron Magnesium Phosphate
Li(Fe,Mg)PO4
Compared to Lead Acid
½ Weight
2X Run Time
Longer Life
Lower Lifetime Cost
Reliable
100% Less Self-Discharge
Extended Shelf Life
Predictable EOL Performance
No Maintenance
Compared to Lithium Oxides
Safe
Longer Life
Lower Lifetime Cost
Reliable
“The Power of Lithium & Safety of Phosphate”
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Technology Advantages
Valence Lithium Vanadium Phosphate
Li3V2(PO4)3
Higher Voltage, Power & Energy
Safe
Longer Life
Lower Lifetime Cost
Reliable
Predictable EOL Performance
No Maintenance
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Valence Patented Lithium Phosphate Family
vs. Lithium Oxides
Characteristic
LiCoO2
LiMn2O4
Li(Fe,Mg)PO4
Li3V2(PO4)3
*140 mAh/g
*120 mAh/g
163 mAh/g
197 mAh/g
3.7V
3.8V
3.2V
3.0 - 4.3V
Very weak
Weak
Strong
Strong
Cycle life
Average
Poor
Excellent
Good
Application need
Key characteristics
Ah
Energy 
 Voltage
kg
Theoretical capacity
Voltage
Oxygen bonding
Specific energy
Pulse power
Cycle life
LVP
High Ah/kg
High voltage


High voltage
Low impedance


Oxygen bonding
Tightly bound
oxygen

Many
Good cycle life

Pulse power 
V
2
R
Safety
Materials need
* Complete extraction of lithium causes performance and safety issues for the oxides
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High Power Pulsing
•P1a 18650 power
cell (43mOhm DC)
5 .0
•10-second pulse
•17A constant current
4 .5
•45W power output at 10 seconds
•VOCV = 3.3V; Vmin = 2.6V
60
40
20
V o lts
W a tts
4 .0
0
3 .5
VOCV
-2 0
3 .0
W a tts
-4 0
Vmin
V o lts
-6 0
2 .5
-1 0
-5
0
5
10
15
20
seconds
•OCV: Open Circuit Voltage
•Application example: 10-second burst of power to accelerate from 0-60MPH
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Maximum Pulse Power
18650 Power Cell Example
Pulse power capability

V min  (V ocv  V min )
R
140
120
LVP
P1a
Pow er W
100
•
•
•
•
•
•
80
60
40
Power optimized 18650
23°C
Weight ~40g
35-45 mOhm DC
Vmin 1.6V cutoff
<10 second pulse length
20
0
0
20
40
60
80
C u rre n t A
High OCV and low resistance deliver higher pulse power for LVP
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LVP Structure
NASICON for High Power
•NASICON-related structure
NASICON = NA (sodium)
SuperIonic CONductor
MO6 octahedra,
Corner sharing with PO4 tetrahedra
Li ions in 3-D network of cavities
•Monoclinic crystal system
•Space group P21/n
•Minimal, reversible structural changes
during removal and insertion of lithium
•100% of lithium may be removed
safely, in contrast to the layered
materials
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Proven Safety & Long Life
Up to 13 Times Less Expensive Than Lead Acid
Battery Life (cycles) at Specified Energy Consumption (%)
35,000
29,657
30,000
Valence Patented Lithium Phosphate
vs.
Enersys Genesis Pure Lead Acid
20,000
15,000
9,746
10,000
4,323
5,000
2,600
1,125
Lifetime Cycles
25,000
600
400
320
0
20
%
50
%
80
%
10
0%
Energy Consumed Per Discharge
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Proven Safety, Performance,
Reliability & Lowest Cost
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Fleet Value Equation
Lifetime Savings $550K/Truck
Cumulative EV vs. Diesel Fleet Truck Cost
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Electric Fleet Benefits
57% Estimated Cost Savings Over 25 Years
Decreased Exposure to Fluctuation in Diesel Prices
Increased Fleet Reliability
Lower Labor and Maintenance Costs to Support Fleet
Zero Tailpipe Emissions
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Commercial Products Powered by U-Charge®
From Personal Transporter
to
Mass Transit
Tested & Approved by
Valence Leads The Way!
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Exclusively Powered by Valence
Next Generation EV’s
Powered by Valence Custom Systems
Powered by Valence
Top Speed 65 MPH / Maximum Range 125 Miles
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Valence Technology
Moving to Other Markets
Motive
>
Marine
Stationary
>
Stationary
>
Medical
Medical
>
Industrial
Industrial
Valence is Following Lithium Opportunities Into a Variety of Markets
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“A Common Sense, Scalable
Manufacturing Approach to Serve
Global Alternative Energy Markets as
they Mature and Standards Develop”
Robert L Kanode
President & CEO
“The Power of Lithium & Safety of Phosphate”
REFERENCE
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Fleet Value Assumptions
Electric Delivery Truck Assumptions
Diesel Delivery Truck Assumptions
“Valence Powered”
“Conventional Fleet Truck”
• Initial Cost $50,000 (Without Engine
and Drive Train)
• Electric Drive Train Components
$32,000
• Valence extended range battery pack
for fleet service $58,000
• Electricity Cost Increase 3% / year
• Battery Pack Replaced Every 10
Years
• Replacement Batteries Packs are
Estimated to be 33% of Today’s Cost in
10 Years.
• Maintenance Cost $1,500 / year
• Tax Penalty Due to Higher Initial Price
(California Sales tax of 8.25% on the
difference)
• Initial Cost $70,000
• Fuel Economy 7 MPG
• Diesel Cost $4 / Gallon
• Diesel Cost Increase 5% / year
• Maintenance Cost $5,000/ Truck
“The Power of Lithium & Safety of Phosphate”
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Valence Lithium Iron Magnesium Phosphate (P1a)
&.
Lithium Vanadium Phosphate Rate Capabilities (LVP)
4 .5
23°C
0 .5 C ra te
4 .0
1 0 C ra te
V o lta g e
3 .5
0 .5 C ra te
3 .0
1 0 C ra te
2 .5
120
.
% c a p a c ity re ta in e d a t 1 C ra te
LVP
2 .0
P1a
100
1 .5
80
0
50
100
% re la tive c a p a c ity
150
60
40
1-C rate
20
LVP
P1a
0
-2 0
-1 0
0
10
20
30
T e m p e ra tu re °C
40
50
60
LVP capacity and voltage
are higher than P1a at all
rates and temperatures
LVP capacity is less
sensitive to rate and
temperature than P1a
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Technology & Products
Patented Technology
Vast IP estate with new patents added every year
Significant and recent patent infringement victory vs. Phostech
Lithium (Canada)
Cathode Materials (LFMP, LVP, LVPF)
Manufactured with patented carbo-thermal reduction process
Cells
Full line of cylindrical and prismatic cells
U-Charge® Modular Storage Systems
U-Charge®
Scalable Systems
Scalable up to 1,000 volts
Featuring Valence interactive “Command & Control System”
Custom Storage Systems
With Valence materials, cells and command & control logic
Application Engineering Support
Integration of energy storage systems into customers applications
Program “Command & Control Logic” to specific custom needs
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