Bjorn Eberleh BorgWarner Akasol GmbH

1. The Circular Battery Eco System CBES
Enabling a sustainable battery life cycle
March 13th 2023
EV Battery Recycling and Reuse USA
Björn Eberleh

2. 1. BorgWarner - Electrifying Commercial &
Industrial Vehicles
2. CBES Scope and Definitions
3. Second Life
4. Recycling
5. Conclusion
Agenda
1 The Circular Battery Eco System

3. Our Vision
A clean, energy-efficient world.
Our Mission
We deliver innovative and
sustainable mobility solutions for
the vehicle market.
The Circular Battery Eco System
2

4. BorgWarner
In Numbers
Locations
93
in 2021 Sales
$14.8bn
22
Countries
Employees
~49k
The Circular Battery Eco System
3

5. Strategic
Global
Operations
Locations in the
Americas
Locations in
Europe
Locations
in Asia
29 34
30
4 The Circular Battery Eco System

6. Commercial Vehicle
Technology
5
Boosting
Technologies
Intake and Exhaust Gas
Management
Controllers
Fuel Injection
Systems
Thermal
Management
Electric Drive
Modules
Electric Drive
Motors
Power
Electronics
Starters &
Alternators
Chargers
Engine Timing
Systems
Battery
Systems
Full Suite of Electrification Capabilities
Low fuel consumption and a long service life
are priorities for commercial vehicles. We offer
highly efficient combustion, hybrid and electric
technologies for a wide range of commercial
vehicles.
The Circular Battery Eco System

7. BorgWarner Battery Systems
6
PRODUCT PORTFOLIO
On-Highway
Trucks | Buses
Off-Highway
Industrial | Marine
AKM CYC product family
Ultra High Energy | Scalable
High Energy Flat Module
Architecture
OEM PRC
High Energy | High Power
NMC LFP
AKM LFP
Cost Efficient
AKR PRC
48 V Solution
9 AKM
6 AKM 5 AKM
High Energy
Stackable (HES)
High Energy
Flat (HEF)
Various Applications Versatile Solutions
The Circular Battery Eco System

8. The Circular Battery Eco System
CBES Scope and Definitions
7

9. The Circular Battery Eco System
8 The Circular Battery Eco System
Due to social and environmental responsibility as well as legislative provisions it
is required to widen the scope of the product towards the impact of its entire life
cycle. This includes:
- Origin of Resources
- Production, usage and transportation in
the entire supply chain
- Collection, dismantling and recycling
A significant contribution to a sustainable product life cycle of a lithium-ion
traction battery is achieved through
– Offering the possibility of a prolonged life by putting into a second
application (second life).
– Efficient collection and recycling of worn out batteries
It is a goal of BorgWarner to reduce the product carbon footprint including
scope 3 emissions by closing the circle.

10. Refurbish
Used batteries are completely
inspected and tested.
Only defects are repaired.
The state, especially SOH of the
battery, is evaluated and can be
guaranteed.
The refurbished battery
therefore is free of defects but
may not be as good as
new. SOH > 70%*
Definitions – Options for reprocessing
Repair
A defect battery is repaired by
just fixing the defect. It is only
verified / tested, that the
existing malfunction has been
repaired and the battery is
basically operating.
Factory Repair
The repair is done in a workshop
of the manufacturer.
Remanufacture
Based on the Refurbishment
following additional steps are
performed:
Wear parts are replaced by
(like) new parts. Main wear
parts are the cells themselves.
The battery is restored to like-
new condition (EU proposal:
SOH > 90%).
Remanufacturing usually
includes Reassembling.
9 The Circular Battery Eco System
Reassemble / Reconfigure
This procedure can be part of a
Refurbishment or
Remanufacturing process.
The battery is disassembled.
Useful parts are refurbished
and put in inventory. Out of the
stock a battery is assembled in
same (Reassemble) or different
(Reconfigure) configuration.
Introducing 5 R’s and their definition
* typical value, to be defined per cell type as the minimum SOH for safe operation.

11. Definitions – Options after 1st life
Repurpose
A used battery is put in a different
application than originally intended.
10 The Circular Battery Eco System
Recycle
A defect or worn out battery is fed
into a recycling process.
Reuse
A used battery is put in a new system which might be same or different
than the original application.
Following the battery after 1st life
Reprocessing

12. The Circular Battery Eco System
Second Life
11

13. 6-8 years 12-20 years
2nd Life concept
Goal: Reuse batteries after their end of vehicle
life for other applications. This will be mainly
stationary storage as weight and thus energy
and power density are not crucial.
12 The Circular Battery Eco System
Industry Renewables Untility and grid support

14. Most likely Battery Life-Cycle Options
13 The Circular Battery Eco System
Scenario 1
Repurposing wo
Reassembling
Scenario 2
Repurposing with
Reassembling
Second Life
Refurbish
First Life End of Life
Scenario 3
Recycling
Scenario 4
Remanufacturing
Disassemble Reassemble
Remanufacture

15. Product Life Cycle of Batteries
14
EOL
Defective
Damaged
Repaired battery back to
customer
Low SOH ‹ 80 %
batteries
Repair
Recycling EOL of 2nd life
SOH › 70 % batteries
SOH ‹ 70 % batteries
and replaced
modules
The Circular Battery Eco System
Battery Recycling
EV sales
After sales management of detective,
damaged or low SOH batteries
Second life application

16. Important parameters from first life are influencing
second life economics
Impact on the specific degradation or the battery cells
results from:
– Technology base, cell, module and pack design
– Usage profile during first life, especially
– Temperature conditions
– Fast charge algorithms
This results in the SOH after first life as well as potential
irreversible effects accelerating future ageing.
A big economic impact has the logistics behind the
second life scene. Important parameter is
– Geographic distribution and quantities of battery packs
of same type
15 The Circular Battery Eco System

17. The Circular Battery Eco System
Recycling
16

18. In a particular initiative requirements of collecting, take back and recovery of raw
materials will be defined in the new EU Batteries Regulation. The regulation will
cover
An increasing ratio of recycled content in batteries over time must be
demonstrated (Article 8)
Legal obligations by EU Batteries Regulation –
Recycled content
17 The Circular Battery Eco System
Year Cobalt Lithium Nickel
2028 Recycled content has to be documented. No targets yet.
2031 12 % 4 % 4 %
2036 20 % 10 % 12 %

19. – Increasing recycling efficiencies from 2025 onwards must be demonstrated (Article 57
– Producer responsibility for collection of waste batteries (Article 49)
Producers of … electric vehicle batteries or … shall take back, free of charge and without an
obligation on the end user to buy a new battery ... all waste … batteries … that they have made
available on the market for the first time in the territory of that Member State.
Legal obligations by EU Batteries Regulation –
Recycling Efficiency & Producer responsibility
18 The Circular Battery Eco System
Year Cobalt Lithium Nickel Copper
2025 Recycling of 65 % by average weight of lithium-based batteries
2030 Recycling of 70 % by average weight of lithium-based batteries
2027 90 % 50 % 90 % 90 %
2031 95 % 80 % 95 % 95 %

20. Recyclability 2023 vs. Forecast 2027
19 The Circular Battery Eco System
>65% > 70%
Expected
Recycling
efficiency**
Material
2023 2027
2027*
target
Steel > 90 > 95
Aluminium > 90 > 95
Electronics > 80 > 90
Lithium > 80 > 90 50
Cobalt oxide > 80 > 90 90
Manganese oxide > 80 > 90
Nickel oxide > 90 > 90 90
Carbon 0 0
Electrolyte 0 25
Aluminium foil > 90 > 95
Copper foil > 95 > 95 90
*recycling efficiency targets within the new EU Batteries Regulations
** based market research and literature studies
Recyclability in 2023 Recyclability in 2027
Some of the efficiencies are technical
feasible but by far not economical. Further
efforts are needed to improve the processes.

21. – Reducing the product and company CO2 footprint and
increasing resource efficiency is a major goal for
BorgWarner
– As part of the strategy opportunities for reuse and
recycling must be taken
– Economics behind 2nd life applications are complex and
depend on many parameters
– Recycling processes are actually scaled up and will be
evaluated with specific products
– Different pilot projects have been launched to gain
practical experience
We will continue our way to close the circle and to support
our vision
A clean, energy-efficient world.
Conclusions
20 The Circular Battery Eco System