SUPPLY CHAIN OF THE ELECTRIFIED FUTURE.

© 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

© 2021 Amsted Graphite Materials 3

+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


Amsted is the world’s largest supplier of freight rail wheels

Amsted Graphite Materials enables much more than rail wheels…


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


Vast experience supplying critical infrastructure, including defense, aerospace, nuclear,

critical materials & metals manufacturing, electronics and more.

AGM Ideally Positioned for Supply Chain Localization


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


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


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


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


Defining Characteristics

Domestic

Supply Chain

Product

Performance

Stability &

Security

Meeting the Domestic US Battery Materials

Industry Challenges



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


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.


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.


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…


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?


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


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.

SUPPLY CHAIN OF THE ELECTRIFIED FUTURE.

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