Advanced Materials in Europe

A case for action

Industrial Technologies 2012 June 20th Aarhus (DK) Dr Marc Van Sande Executive Vice-President Energy Materials Umicore

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 Industrial Technologies 2012 2

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 Metals Application know-how Chemistry material Material science solutions Metallurgy Material solutions Recycling Industrial Technologies 2012 3

Umicore’s development fits with megatrends Electrification of the automobile Resource scarcity More stringent emission control Renewable energy

We are a leading producer of key materials for rechargeable batteries for laptops, mobile phones as well as electrified vehicles We are the largest recycler of precious metals; we are able to recycle more than 20 different metals 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 Industrial Technologies 2012 4

Umicore in figures

Financials

5%

Geographic spread of sales (2011)

17% 2% 22% 7% 8% 4% 56% 16%

Europe South America Africa Europe South America Africa North America Asia Pacific

63%

North America Asia Pacific Industrial Technologies 2012 5

80% of Umicore’s R&D (*) investment is in the clean tech domain recycling emission control 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 Industrial Technologies 2012 6

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

Photovoltaic (solar cells) Germanium Gallium Selenium Indium Tellurium Silver … Light Emitting Diodes (LED) Gallium Indium Germanium Silver … Electric vehicles & batteries Lithium Cobalt Nickel Rare Earth Elements Copper … Fuel Cells Platinum Iridium Cobalt … Industrial Technologies 2012 7

Criticality for EU The 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

Critical materials (EU): Be, Co, Ga, Ge, In, Mg, Nb, PGM, REE, Sb, Ta, W, fluorspar, graphite Source: Critical Raw Materials for the EU – European Commission Enterprise & Industry, July 2010 Industrial Technologies 2012 8

Resource efficiency needed to deal with scarcity of technology metals

Application know-how Metals Chemistry material Material science solutions Metallurgy Material solutions Recycling Industrial Technologies 2012 9

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

Industrial Technologies 2012 10

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) Industrial Technologies 2012 11

EU needs to reinforce and develop its assets 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 present

Global patent and manufacturing shares for Li-ion batteries

EU must rebalance resources & objectives to retain critical capability & capacity EU must reinforce & rapidly develop strategic sectors in order to compete

Industrial Technologies 2012 12

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 Industrial Technologies 2012 13

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 Industrial Technologies 2012 14

For Horizon 2020, a PPP on advanced energy materials 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 materials EERA: European Energy Research Alliance Industrial Technologies 2012 15

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 Industrial Technologies 2012 16