Samsung SDI Sustainability Report 2023

SAMSUNG SDI SUSTAINABILITY REPORT 2023 14 □ CE CEO's Message OVERVIEW SUSTAINABILITY MANAGEMENT SUSTAINABILITY MAIN THEMES APPENDIX Business Overview Company Overview 2030 Company Vision Business Overview Battery R&D Activities All-Solid-State Battery Samsung SDI is developing all-solid-state batteries which deploy solid electrolytes in place of liquid ones normally used for conventional batteries with an aim to improve battery safety and energy density. With our success in designing and synthesizing solid electrolytes, we have led the way in technology development by manufacturing all-solid-state battery prototypes. We also developed anode-less all- solid-state battery technology with improved cycle life through the adoption of independently-config- ured solid electrolyte materials and lithium anodes to demonstrate best-in-industry energy density and performance. Our 6,500m-sized S-Line initiated its construction at the SDI R&D Center in March 2022 as our all-solid- state battery pilot line and completed in March 2023. This pilot line will enable us to start the production of small-sized sample cells and conduct performance, materials, parts, and process tests. We will secure the technology to manufacture larger cells and scale up our manufacturing towards the commercializa- tion of all-solid-state battery. Cobalt-free Battery Cobalt, a key raw material for battery production, is instrumental in ensuring battery safety and perfor- mance. Its high prices and geographical concentration, however, also gives rise to supply/demand risk. To mitigate such risk, we are exploring cobalt-less cathodes with reduced cobalt content or cobalt-free cathodes for our high-capacity battery production. Samsung SDI is developing NMX material which does not contain cobalt and still retains the strengths and basic properties of existing cathode materials to the fullest possible extent. Applying NMX that is eco-friendly and price-competitive while mitigating the risk of raw material supply/demand for battery mass-production will surely assist Samsung SDI in securing competitiveness in the EV and ESS battery markets. Battery Recycling The burgeoning EV market will naturally lead to increases in the generation of end-of-life batteries, which draws our attention to minimizing the resulting environmental impact. To expand resource rec- lamation through battery recycling, we opened the Recycling Research Lab exclusively responsible for researching ways to recycle end-of-life batteries within our R&D Center in May 2022. Work is on-going to increase the recovery of battery materials and reclaim eco-friendly materials, and the Lab will also engage in technology cooperation with partners and in industry-academia collaborations to develop new recycling technology. This, in turn, will help us continuously raise the proportion of recycling such core battery raw materials as cobalt, nickel, and lithium. Patent Management Samsung SDI leverages patents to safeguard our technology and develop market-leading products and services while managing patent-related risks that may occur in business conduct. We proactively file and register our pat- ent applications on our proprietary technology across major countries in con- sideration of our markets and production locations, and prevent technology associated with trade secrets from being leaked by registering such technolo- gy as trade secret and managing them accordingly. We have remained steady with our patent registration efforts since the early days of business to estab- lish a wide-ranging patent portfolio covering the full spectrum of rechargeable battery and electronic materials, and have put our patents to work in bringing market-leading innovative products to market. As to next-generation tech- nology, not only do we develop our internal technology capabilities, but also partner with leading universities and research institutes in Korea and over- seas to secure patents in promising future technology areas. For exceptional external patents, we increase our freedom to operate either through patent licensing or patent acquisition. Meanwhile, we minimize patent risk through rigorous verification of competitor patents in the product development pro- cess. Our patent competitiveness gained as such ensures that we continue and expand stable business relationships with our customers and suppliers. As of the end of 2022, Samsung SDI's pool of patents included 5,782 patents in Korea and 13,415 patents overseas. Patents Registered on a Cumulative Basis Country Unit 2020 2021 2022 Korea cases 5,070 5,231 5,782 US cases 4,022 3,976 4,107 China cases 2,038 2,042 2,326 Japan cases 1,410 1,336 1,435 Europe cases. 4,113 4,410 4,743 Others cases 983 740 804 Total cases 17,636 17,735 19,197

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