2. Advanced Lead Acid Battery
Development and Manufacturing
•75,000 sq. ft. mfg facility •55,000 sq. ft. new facility
3. SAFE HARBOR
Certain statements in this presentation are "forward-looking statements"
within the meaning of the Private Securities Litigation Act of 1995. These
statements include, without limitation, statements concerning the Company's
ability to expand its manufacturing capabilities and bring its new PbC® based
battery products to market, the Company's belief that its completed products
will be the only class of advance battery of its kind and that it will be a viable
replacement for older generation lead-acid batteries. These forward-looking
statements are based on our current expectations and beliefs and are subject
to a number of risk factors and uncertainties that could cause actual results to
differ materially from those described in the forward-looking statements. Such
risks and uncertainties include the risk for the Company to complete its
development work, as well as the risks inherent in commercializing a new
product (including technology risks, market risks, financial risks and
implementation risks, and other risks and uncertainties affecting the
Company), as well as other risks that have been included in filings with the
Securities and Exchange Commission, all of which are available at
www.sec.gov. We disclaim any intention or obligation to revise any forward-
looking statements, including, without limitation, financial estimates, whether
as a result of new information, future events, or otherwise.
3
4. EXPERIENCED
MANAGEMENT TEAM
• Operating Management • Independent Directors
Tom Granville, CEO and Director Bob Averill, Director
• 25 years as CEO and general partner in • Founder of three orthopedic implant
contracting, real estate and investment companies
entities
Dr. Howard Schmidt, Director
• Exec. Director Rice University Carbon
Don Hillier, CFO Nanotechnology Lab
• 20 years financial experience in public and Glenn Patterson, Director
private companies engaged in manufacturing
and service industries • Former CEO Oregon Electric, $130 million
electric utility infrastructure contractor with a
manufacturing division
Dr. Edward Buiel, VP and CTO Stan Hirschman, Director
• 12 years developing materials for lithium ion • President C Point, extensive public company
and supercapacitor energy storage devices experience.
• Former project leader of the Energy Storage
Group at MeadWestvaco Dr. Igor Filipenko, Director
• International entrepreneur with interests in
more than a dozen companies worldwide
Dr. Bob Nelson, VP of Manufacturing ranging from manufacturing to oil exploration
• 30 years lead acid battery R&D and
manufacturing Michael Kishinevsky, Director
• Lawyer and entrepreneur. President of a
carbon company
S Walker Wainwright, Director
• 30 years investment banking experience
6. COMPANY OVERVIEW
• Commercializing new Advanced Lead Acid Battery Technologies
PbC® Technology (Lead Carbon)
• Higher performance
• Less Lead = Less Weight
• Significantly longer life
• Faster recharge time
• Higher cycle efficiency
• Manufacturing
Standard lead acid batteries
• Contract manufacturing
• Branded lead acid battery
Manufacturing carbon electrodes
• Target Markets
HEV / EV / PEV Vehicles
Hybrid Truck/Bus/Train
Grid-based Energy Storage
Truck Auxiliary Power Unit
Military Applications
7. HYBRID VEHICLES
MARKET DRIVERS
EU legislation on CO2 emission (2012: 160 to 120 g CO2/km for 65% of the fleet ramping to 100% by 2015.)
US legislation on mileage (2015: mileage from 20 to 35 miles/gallon)
Car manufacturer required to improve fuel efficiency
=> New focus on MICRO HYBRIDS that will use ADVANCED LEAD ACID BATTERIES
HYBRID VEHICLES ELECTRICAL
VEHICLES
CURRENT MICRO MILD FULL EV
CARS Hybrid Hybrid Hybrid PHEV
START/STOP+ FULL ELECTRIC DRIVE Full ELECTRIC DRIVE
Example: START/STOP
REGEN BRAKING CAPABILITY (Limited) 10-100+ MILES
9. Limited Engine
Modification
• Starter/Alternator
replaced with Integrated
Starter/Generator
• Remarkably similar to
the standard alternator
as shown in the picture
• 2 electric machines
replaced by 1 – almost
cost neutral for the drive
train
10. HYBRID VEHICLES
Hybrid Propulsion source Fuel / Applications
Types CO2
savings
Micro ENGINE ONLY 5% to Audi A4 TDi Concept e
hybrid Electric motors provide functions such as 15% BMW Ed ‘EfficientDynamics’
auxiliary power, starter/generator, Fiat 500 PUR-0² / Ford ECOnetic series
managing engine stop/start and may or Hyundaï i20 Blue / Kia Cee’d ISG Stop&Go
many not use regenerative braking to Mercedes ‘BlueEfficiency’ C class
charge the battery Toyota Yaris /Auris Stop&Start
Mild ENGINE + ELECTRIC MOTOR BOOST 15% to Audi A1 Sportback Concept
hybrid Electric motor provides supplementary 25% BMW ActiveHybrid /Lexus HS
torque to the gasoline or diesel engine, but Citroën C4 HYmotion2 / Honda Civic Hybrid
is never the sole source of driving power Hyundaï Sante Fe Hybrid
(up to 10% of the maximum engine power) Kia Cee’d/Soul Hybrid / Mazda Kiyora
Mercedes BlueHybrid S Class
Toyota Accord Hybrid
Full ENGINE OR ELECTRIC MOTOR 25% to Chevrolet Volt
hybrid or Vehicle can be driven by the electric motor 50% Ford Escape
strong or the engine independently or together Honda Insight
(electric motor provides around 40% of the
hybrid maximum engine power as additional
Toyota Prius
torque)
EV or ELECTRIC MOTOR 100% Bollore/Pininfarina B0
PHEV or Sole driving power source (no gas engine) Renault Zero Emission Concept
Series Mini « E » / Mitsubishi iMiEV
hybrid Toyota FT-EV / Venturi Voltage
11. EU CO2 Reduction and US
Café Requirements
Region Date % of Fleet Requirement
US 2016 100 35.5* MPG
Europe 2012 65 130 g CO2/km**
Europe 2013 75 130 g CO2/km**
Europe 2014 80 130 g CO2/km**
Europe 2015 100 130 g CO2/km**
Europe Long term (2020?) 100% 95 g CO2/km**
*- Current US average fleet fuel economy = 20 MGP.
**-130 g CO2/km = 42.4 MPG
12. EU CO2 Reduction
Requirements
• Average Gasoline Carbon Content: 2,421 g/US Gallon1
• 1 Gallon Gasoline produces 2,421 X 44/12 = 8,877 g CO2
• EU Requirement = 130 g CO2/km
8,877 g CO2/gal X 0.621 mile/km X 1 km/130 gCO2 = 42.4 mpg
(based on US gallon, 48.7 miles/UK gal)
• M = 5513 / C where
M = mileage in mpg (US gallon)
C = CO2 emissions per km (g CO2/km)
1 Source: US EPA
15. Lead Acid vs. PbC®
battery in Micro Hybrid
Time
Charge Energy Between
Current Efficiency Start/Stop Cost Max Level
(Max) (%) Events3 ($) of Hybrid
VRLA 20 301 500 s 150 Micro
PbC®
battery 150 84 24 s 250 Mild
(Present)
PbC®
battery 200 90 17 s 300 Full
(Future)
1,500 -
NiMH 200 90-602 17-25 s Full
4,8004
1 Source: Ford Motor Company
2 NiMH end of life power performance degrades with time
3 Based on 3,000 A S discharge, time required to recover discharged energy
4 $1,561 (Nissan Altima NiMH Hybrid) and $4,770 (Saturn Vue NiMH Hybrid) Cost Premiums (Source Deutsche
Bank)
16. AXION PowerCube™
• Axion has developed solutions for renewable energy and
distributed utility grid energy storage with the PowerCube™,
an advanced Battery Energy Storage System (BESS).
16
17. AXION PowerCube™
• Utility/industrial energy storage device
Up to 1 MW per cube
Scalable up to 25 MW
• Applications
Power quality
Power arbitrage
Outage protection
18. AXION PowerCube™
• Target Markets
Utilities
Grid based electrical energy storage
Industrial energy storage
Renewable
Military
• Economics
DOE/Sandia target < 1,000 $/KW
PowerCube < 1,000 $/KW total installed cost
• PbC Battery <500 $/KW
Other battery technologies > 1,000 $/KW total installed cost
• Most other advanced batteries > 1,000 $/KW
• Traction
Proposals out: 4 demonstration facilities (250-3,000 KW)
Projects: 2 approved, 2 under review
19. CURRENT CUSTOMERS
Automotive Market
BMW ● FIAT ● FORD ● PSA ● Renault ● Suzuki ● Toyota ● VW ● VDA
Industrial and Motive Power Market
John Deere ● Ingersoll Rand ● Ryder ● Penske ● AT&T ● Bell Canada
Crown Equipment ● Emerson Network Power ● Norfolk Southern Corp
Lockheed Martin ● York Electro-Mechanical Corporation
Wind Energy Storage Market Utility Grid Support Market
PV Storage Market Industrial UPS Market
20. MILITARY APPLICATIONS
• Oct, 2008 Axion awarded $1.2 Million in Federal funding to
develop PbC® batteries for Navy and Marine Corps Vehicle
Applications
20
21. MANUCTURING PARTNER:
EXIDE
• Exide is one of the largest lead battery
manufactures in the world
• Exide currently sells to virtually all
automotive OEM’s
• Axion’s PbC® Battery is an enabling
technology for more efficient micro and
mild hybrid vehicle technologies
VRLA fails cycle life and efficient targets
Other advanced batteries are
significantly more expensive and require
significant vehicle modification
• Axion will sell PbC® electrodes to Exide
Possibly license technology later
23. AXPW - INFORMATION
Symbol AXPW
Corporate Headquarters New Castle, PA
Stock Price (09/03/09) || 52-Week Range $2.35 || $0.87 – 2.75
Shares Outstanding (06/30/09) 26,453,437
Market Capitalization $62M
Volume (daily 90-day average) 18,028
Debt (06/30/09) $0
Cash (06/30/09) $950,013
Insider Ownership 59%
Institutional Ownership Shares 47%
Full-time Employees 51
Fiscal Year Dec 31
Accounting Firm Rotenberg & Co., LLP
23
24. AXPW - INFORMATION
Total Insiders *
Common Stock 26,453,437 16,500,330
Convertible Preferred Stock
9,355,276 6,026,388
(assuming full conversion into common)
Common Stock Purchase Warrants
14,128,772 11,273,536
(average exercise price $2.91)
Common Stock Purchase Options
1,911,905 1,335,455
(average exercise price $2.98)
Fully Diluted
(after receipt of $46,803,451. in warrant and 51,918,140 34,135,709
option exercise proceeds)
* Officers, Directors and 5% or greater stockholders
25. SUMMARY
• Sales and manufacturing of conventional lead
acid batteries
Utilize current manufacturing capacity
• Contract manufacturing
• Axion branded batteries
• Sales and manufacturing of Axion PbC®
batteries
Fulfill funded and internal projects
Manufacturing carbon electrodes
• Pursue military contracts
• PowerCube™ development and sales
• Leverage Exide and East Penn relationships for
HEV applications
• Continue to explore government grant
opportunities
25
26. CONTACT INFORMATION
Axion Power International, Inc.
New Castle, Pa
Tel: +1-724-654-9300
www.axionpower.com
Stephanie Ellsworth
sellsworth@axionpower.com
