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ID.

INSIGHTS
SUSTAINABLE E-MOBILITY
Film: Emotional Trailer
ID. INSIGHTS Sustainable E-Mobility

The reason why: Keynote: Module 1:

Climate Sustainable How to make


protection and e-mobility the ID. carbon
decarbonisation for all neutral
Georg Kell / Ralf Pfitzner Christian Senger Michael Liebert

Module 2: Module 2: Module 3: Module 3:

Supply chain Production Use phase Re-use /


recycling
Marco Philippi Liendel Chang Silke Bagschick /
Martin Roemheld
Thomas Tiedje
ID. INSIGHTS Sustainable E-Mobility

The reason why: Keynote: Module 1:

Climate Sustainable How to make


protection and e-mobility the ID. carbon
decarbonisation for all neutral
Georg Kell / Ralf Pfitzner Christian Senger Michael Liebert

Module 2: Module 2: Module 3: Module 3:

Supply chain Production Use phase Re-use /


recycling
Marco Philippi Liendel Chang Silke Bagschick /
Martin Roemheld
Thomas Tiedje
Climate protection and
decarbonisation
The reason why

Georg Kell
Sustainability Council Spokesman
NASA’s Surface Temperature Analysis: Global Warming is real

Gif: NASA Animation

Source: NASA Goddard Institute for Space Studies, GISTEMP Model


Georg Kell on Climate protection and decarbonisation

Decarbonisation and digitalisation drive „smart sustainability“


Georg Kell on Climate protection and decarbonisation

Decarbonisation and digitalisation drive „smart sustainability“

Natural resources become value drivers


Georg Kell on Climate protection and decarbonisation

Decarbonisation and digitalisation drive „smart sustainability“

Natural resources become value drivers

The faster we act, the greater the benefits


Georg Kell on Climate protection and decarbonisation

Decarbonisation and digitalisation drive „smart sustainability“

Natural resources become value drivers

The faster we act, the greater the benefits

Companies who tackle both megatrends


remain competitive
Georg Kell on Climate protection and decarbonisation

Decarbonisation and digitalisation drive „smart sustainability“

Natural resources become value drivers

The faster we act, the greater the benefits

Companies who tackle both megatrends


remain competitive

For Volkswagen, to become the market


leader in e-mobility is the best way to
a secure and successful future
ID. INSIGHTS Sustainable E-Mobility

The reason why: Keynote: Module 1:

Climate Sustainable How to make


protection and e-mobility the ID. carbon
decarbonisation for all neutral
Georg Kell / Ralf Pfitzner Christian Senger Michael Liebert

Module 2: Module 2: Module 3: Module 3:

Supply chain Production Use phase Re-use /


recycling
Marco Philippi Liendel Chang Silke Bagschick /
Martin Roemheld
Thomas Tiedje
Climate protection and
decarbonisation
Module 1

Ralf Pfitzner
Head of Sustainability of the Volkswagen Group
The automotive industry is part of the problem:
The transport sector accounts for 1/7 of global greenhouse gas emissions

Buildings

Other energy Industry


6%

10%
25%

Electr./
heat 21%
production

14%

Transport
(a.o. automotive)

24%
Agriculture, forestry, land use
Source: IPCC 2014, EEA 2018!
Volkswagen is determined to be part of the solution, focusing
on climate change mitigation and decarbonisation

DIMENSIONS OF SUSTAINABILITY AT VOLKSWAGEN! FOCUS AREA: CLIMATE CHANGE MITIGATION AND DECARBONIZATION!

Profit: Strategy & Why it matters to Volkswagen:!


Management!
!
§  Because of our significant influence
and thus our responsibility!

SUSTAINABILITY §  Because of rising stakeholder


VOLKSWAGEN expectations!
GROUP!
Planet / Environment:
Products, Services &
Production
§  Because decarbonisation delivers
! direct business value!
People:
People &
Responsibility!

!
CO2 matters over the entire life cycle

Production Use phase End-of-life

Fuel/energy Energy
Supply chain Production supply consumption Recycling
Σ 43.7
tCO2/vehicle
5.7 0.8 5.5 29.0 2.7

Our Decarbonization Index (DKI) allows to track improvements in CO2-performance

Paris commitment needs 30% reduction goal per car by 2025

*2015 DKI t CO2/vehicle: Average Volkswagen Group vehicle across all brands!
!
Volkswagen addresses an entire ecosystem, goes beyond
the vehicle itself

Energy transition! Low-emission product! Mobility services! Charging infrastructure!

§  Wolfsburg power plant §  Further reductions! §  MOIA electric §  Elli to offer green
conversion saves §  Alternative fuels! shuttles in first cities ! energy, wallboxes
1,5 mn tons of §  E-offensive! §  All-electric car-sharing and holistic charging
CO2/year by 2022 – Volkswagen We Share solutions!
corresponding to Q2/2019 in Berlin! §  Volkswagen is part
emissions of of IONITY rapid
870,000 cars per year! charging network!
BEV today first choice in CO2 over lifetime
Current Golf vs. e-Golf

0 20 40 60 80 100 120 140 160 180


g CO2/km
Petrol 26 27 119 173
<11
Diesel 29 11 100 141
<1
CNG 29 27 ‚ 94 151
<1
PHEV* 43 55 41 140
<1
BEV** 57 62 120
<1
Production (cradle2gate) Fuel Supply (well2tank) Use (tank2wheel)

Source: Volkswagen K-GEGU ! !| * EU 28 Mix, Petrol !| ** EU 28 Mix!


Summary: Ralf Pfitzner on climate protection and
decarbonisation

Decarbonisation and climate change are focus topics

We track CO2 over the entire life cycle

Volkswagen addresses an entire ecosystem

BEV and PHEV leading in overall energy efficiency


ID. INSIGHTS Sustainable E-Mobility

The reason why: Keynote: Module 1:

Climate Sustainable How to make


protection and e-mobility the ID. carbon
decarbonisation for all neutral
Georg Kell / Ralf Pfitzner Christian Senger Michael Liebert

Module 2: Module 2: Module 3: Module 3:

Supply chain Production Use phase Re-use /


recycling
Marco Philippi Liendel Chang Silke Bagschick /
Martin Roemheld
Thomas Tiedje
Sustainable
e-mobility for all
Keynote

Christian Senger
Head of Volkswagen Product Line e-Mobility
Volkswagen is committed to the climate goals
of the Paris Agreement

Paradigm shift already underway


“Well below 2°C goal” is guideline and benchmark
Vision of CO2-neutral mobility is firmly anchored
Transformation is underway at all brands
Realignment of governance
Redistribution of resources
We are acting early to lay the groundwork for meeting the
climate goals
t

Fleet renewal

CO2 emissions CO2-neutral CO2-neutral


new vehicle fleet new vehicle fleet existing fleet

Today 2050
There will be massive changes in our drivetrain portfolio by 2040

10-20% ~10-25%
10-25%
10-20%
10-25%
~60% ~70% >85%

Battery electric (BEV) Fuel cell (FCEV) Plug-in hybrid (PHEV) Combustor (ICE)
Volkswagen has launched the most extensive e-offensive in the
global automotive sector

Goal: Electrification of the entire model portfolio

2025! 2030!
  25% of new Group vehicles   At least one electric
will be powered solely by electricity version of each of the
  50 BEVs + 30 PHEVs. Group’s > 300
models.
Volkswagen is driving forward e-mobility like no other volume
manufacturer

1st wave!

> 50 !
New fully electric vehicles by 2025!
Mission E Cross Turismo !

ID. Buzz!

~ 30
e-tron GT!

!
Billion € invest by 2023! ID. Vizzion!
Vision E!

ID. Neo!

e-tron Sportback Konzept!

~ 15 !
Million MEB vehicles in the first wave! Taycan!

ID. Crozz!
e-tron!
Volkswagen will achieve major economies of scale
by producing MEB vehicles worldwide

Eight e-sites to be set up worldwide by 2022:

Hanover Zwickau
Germany Germany

Chattanooga Emden
Dresden
USA Germany Germany

Anting
China

Mladá Foshan
Boleslav China
Czech Republic
The Volkswagen brand’s e-offensive is based on
three strategic pillars

Low Costs Strong Benefits Modern Lifestyle

Consistently generating Exploiting the full potential Networking hardware,


economies of scale of e-mobility by software and services for
by Group-wide use of MEB developing a completely contemporary and modern
electric platform. new product family. mobility solutions.
The MEB electric platform is the technological and economic
backbone of the e-offensive

By 2022, we will be offering pure electric models in all relevant vehicle


segments.
Compact SUV Shooting brake
A B
segment segment
Electric for all: The launch of the Volkswagen ID. at the end of
2019 marks the start of a new era
The ID. is trimmed to reduce CO2 along the entire value chain –
and achieve a climate-neutral balance

Supply
Production Use Recycling
chain

100 % green power in 100 % green power at 100 % Volkswagen Second life /
battery cell production Zwickau factory Naturstrom via Elli closed loop recycling
Consistent reductions in CO2 emissions in production
and supply chain

CO2 effect
CO2 supply chain & production
Measures implemented
Measures in implementation/planning

Energy-
efficiency
Zwickau Green I Avoidance & reduction
energy Green
Zwickau energy
further
Green energy suppliers
cell production II Compensation
HV battery of non-avoidable emissions 1)

First half 2020


1) Through certified projects – e.g. VCS (Verified Carbon Standard) or REDD+ (reducing emissions from deforestation and forest degradation)
Offerings for CO2-neutral use throughout the entire life cycle

+ =

Charging with green power… …makes the ID. CO2-neutral


throughout the entire life cycle
From today’s perspective, electric vehicles are the best way to
achieve effective climate protection

Eco-balance over life cycle 2020

Petrol
Limited potential
for further CO2 improvements by 2050

Diesel

EV High potential
after for further CO2 improvements by 2050
optimization
In a nutshell: Volkswagen is making the car climate-neutral

“Well below 2°C” is the yardstick for our actions


Biggest e-offensive worldwide launched
Attractive and affordable electric cars for all
MEB is strong basis for major economies of scale
The ID. marks the start of a new era in 2019
First car in the world with a CO2-neutral balance
ID. INSIGHTS Sustainable E-Mobility

The reason why: Keynote: Module 1:

Climate Sustainable How to make


protection and e-mobility the ID. carbon
decarbonisation for all neutral
Georg Kell / Ralf Pfitzner Christian Senger Michael Liebert

Module 2: Module 2: Module 3: Module 3:

Supply chain Production Use phase Re-use /


recycling
Marco Philippi Liendel Chang Silke Bagschick /
Martin Roemheld
Thomas Tiedje
How to make the ID.
carbon neutral
Module 1

Dr. Michael Liebert


Head of Sustainability VW Passenger Cars
For Volkswagen, sustainability covers a multitude of measures

Customer &
Climate
employee protection
related
topics

Sustainability
Profitability & Sustain- Resource
considers and harmonizes growth
ability
protection

business, environmental
and social aspects Mobility Health

Human
rights

Sustainability dimensions
Sustainable CO2 optimization addresses the entire life cycle
of a vehicle

Production Use phase End-of-life

Fuel/energy Fuel
Supply chain Production supply consumption Recycling

CO2 optimization measures throughout the entire life cycle

Key priority: Avoidance & reduction Complementary: Compensation


(Focus on core business) (Non-avoidable emissions only)
Battery production and charging are key levers for the
CO2-neutrality of the ID.
(tCO2/vehicle before optimization)
Recycling

Recycling

Energy
Fuel consumption Fuel/energy supply
for charging

Production

Fuel/energy supply Energy for battery


Production Supply chain
production

Supply chain

Diesel ID.
Our vision is 100% CO2-neutral E-mobility
Decarbonisation concept
Volkswagen’s delivery promise

CO2-neutral production Zero-emission CO2 neutral customer


incl. supply chain vehicle handover from dealer!
Vision
100%
CO2-neutral
E-mobility

Customer!

Offerings for
Green energy contracts Green energy charging CO2-free
for charging infrastructure usage period!

Customer offerings for the use phase


The ID. made in Zwickau will be CO2-neutral at handover to our
customers

CO2 effect
CO2 supply chain & production
Measures implemented
Measures in implementation/planning

Energy-
efficiency
Zwickau Green I Avoidance & reduction
energy Green
Zwickau energy
further
Green energy suppliers
cell production II Compensation
HV battery of non-avoidable emissions

First half 2020


We focus on climate projects with the highest quality standards

Focus
Additional, measurable and certified climate effects
Social and ecological impacts
Geographical proximity to global Volkswagen locations

Project types

Reforestation Protection of Household-related Renewable energy


in tropical tropical forests CO2 avoidance projects
climate zones through social projects
Use phase optimization requires joint efforts
Key stakeholders by life cycle phase

Production Use phase & end-of-life


Supply chain Production Energy supply Recycling

Suppliers Volkswagen Customers Politics


<1 year >10 years

Handover to customers
National energy mix optimization is a crucial political factor
Life cycle emissions based on average national energy mix
(tCO2/vehicle before optimization)

UK DE NE NO DK CH FR SE

Supply Chain & Production Use Phase & End-of-Life


Volkswagen focuses on green energy across all charging
scenarios

HOME | WORK |
50% 20%

Carbon neutrality
requires green
HIGHWAY | energy PUBLIC |
5% 25%
Significant steps taken on the path towards a CO2-neutral ID.
tCO2/vehicle

Supply Chain
ID. CO2 Avoidance &
Zwickau
emission reduction Avoidance &
over life reduction
Supply Chain & Our vision
cycle
(before
Production
optimization) Compensation 100%

Use Phase
Summary: Michael Liebert on how to make the ID. CO2-neutral

Decarbonisation is our sustainability priority for climate protection

Our vision: 100% CO2-neutral e-mobility

We ensure a CO2-neutral handover of the ID. to the customer

We focus on CO2 avoidance and reduction in the core


business – compensation as an additional measure

We recommend and actively support green energy in


all charging scenarios
More than 50% of life cycle emissions have been already
addressed – many long-term measures will be tackled
Climate
protection
a MARATHON not a
sprint.
ID. INSIGHTS Sustainable E-Mobility

The reason why: Keynote: Module 1:

Climate Sustainable How to make


protection and e-mobility the ID. carbon
decarbonisation for all neutral
Georg Kell / Ralf Pfitzner Christian Senger Michael Liebert

Module 2: Module 2: Module 3: Module 3:

Supply chain Production Use phase Re-use /


recycling
Marco Philippi Liendel Chang Silke Bagschick /
Martin Roemheld
Thomas Tiedje
Supply chain
Module 2

Marco Philippi
Corporate Director, Strategy Group Procurement
Proactive management of sustainability through procurement
has started

Environmental Social Compliance

Requirements for our „We have announced the most comprehensive electrification program in
the automotive industry. Transparency in the supply chain is a
supply prerequisite for the assessment of social and environmental standards.“
!
Chain S. Sommer
Group Board Member for
Components and Procurement
! Pictures by www.unsplash.com
Batteries bring higher CO2 emissions in the supply chain

E-Machine Others
Steel

>150%
Battery
Battery
Cell
Supply chain Cathode
CO2 impact

Golf Diesel ID.


Our activities to optimize CO2 in the supply chain

1 HV Battery Cell

Background
§  Energy-intense process
§  Energy sources: electricity + LNG

Measures
§  100 % green energy, defined in
procurement requirements;
confirmed by ID. Tier 1 suppliers
1 HV Battery Cell

Background
§  Energy-intense process
§  Energy sources: electricity + LNG > 80%

Measures
§  100 % green energy, defined in
procurement requirements;
confirmed by ID. Tier 1 suppliers

Reduction Potential
> 80%
2 Steel
Background
§  CO2 as process-inherent emission (limestone decomposition
and iron ore reduction cause CO2 emissions)
Measures (two general approaches):
§  End-of-pipe approach:
Capture/store/use for synthetic fuels & chemicals
§  Process-integrated approach:
adapted reduction agent avoids CO2 emissions
2 Steel
Background
§  CO2 as process inherent emission (limestone decomposition
and iron ore reduction cause CO2 emissions)
Measures (two general approaches):
§  End-of-pipe approach:
Capture/store/use for synthetic fuels & chemicals
§  Process-integrated approach:
adapted reduction agent avoids CO2 emissions
Reduction Potential
> 75% 75%
3 E-Machine
Background
§  Aluminum used for case & magnet production is CO2 hot-spot
Measures
§  Usage of secondary aluminium
§  Green energy usage Tier 1 suppliers
§  Collect specific energy demand in sub-supply chain
§  Define further measures
3 E-Machine
Background
§  Aluminum used for case & magnet production is CO2 hot-spot
Measures
§  Usage of secondary aluminium
§  Green energy usage Tier 1 suppliers
50% §  Collect specific energy demand in sub-supply chain
§  Define further measures

Reduction Potential
50%
3 HV Battery Cathode

Background
§  Cathode production and sub-
supply chain (raw material
production) expected to be
CO2 hot-spot
Measures
§  Collecting specific energy demand in sub-supply chain
§  CO2 reduction with suppliers with reduction program in
cooperation with Tier 1
3 HV Battery Cathode
?
Background
under §  Cathode production and sub-
evaluation supply chain (raw material
production) expected to be
CO2 hot-spot
Measures
§  Collecting specific energy demand in sub-supply chain
§  CO2 reduction with suppliers with reduction program in
cooperation with Tier 1

Reduction Potential
under evaluation
Illustrated potential of CO2 reduction

Current
Status
~33%

Supply chain
CO2 impact

ID. Illustrated
activities
Illustrated potential of CO2 reduction and outlook

Further measures to decrease CO2 emissions


Current
Status
§  Inclusion in decision-making processes
§  Green Energy Requirements for suppliers
§  Focus on further materials and key components
Supply chain §  Use of secondary material
CO2 impact §  CO2 workshop with suppliers to define specific action plans
§  Switch to other production technologies
§  Supplier trainings and consulting

ID. Illustrated Future


activities activities
Supply chain transparency is a cross-factor hot-spot
Direct business relations

1st tier

Raw material
€!
Trader and/or
Refiner
(Sub-)
Components
Directed
part
Supplier/
Assembler
OEM

Risk Exposure Transparency

Our approach:
1)  Focus on critical parts, e.g. battery cells
2)  Form partnerships with first tier suppliers to disclose all supply chain actors
3)  Gather data, generate transparency and implement measures
4)  Transfer approach to other supply chains

§  Deep automotive supply chains are


Challenges in our complex and bear high risks

supply chain §  100% transparency for all parts and


materials is currently not possible
Pictures by www.unsplash.com, Icons made by www.flaticon.com!
Sustainability as selection criteria on par with quality or price

Technical Quality Logistics Sustainability


Costs Investments
rating rating rating „S-Rating“

§  Group-wide process for all suppliers


Sustainability as
§  Supplier assessement on sustainability (environment,
decision parameter social, compliance)
§  No contracts with negatively rated suppliers
Pictures by www.unsplash.com, Icons made by www.flaticon.com!
Sustainability as selection criteria on par with quality or price

Technical Quality Logistics Sustainability


Costs Investments
rating rating rating „S-Rating“

§  Code of conduct
for business
partners
§  Group Policy on
Sustainable Raw
Materials

§  Group-wide process for all suppliers


Sustainability as
§  Supplier assessement on sustainability (environment,
decision parameter social, compliance)
§  No contracts with negatively rated suppliers
Pictures by www.unsplash.com, Icons made by www.flaticon.com!
Transparency measures mitigate compliance risks

GLOBAL BATTERY RESPONSIBLE DRIVE ALUMINIUM


ALLIANCE MINERALS INITATIVE SUSTAINABILITY STEWARDSHIP INITATIVE

Others:
Econsense
EITI
VDA

Setting standards to Develop and standardise Develop and standardise Global sustainability
ensure the social and certification systems for risk assessment tools standard for aluminium.
environmental cobalt, tantalum, (questionaires, raw mat.
sustainability for battery tungsten, tin & gold. observatory). Apply to all stages of the
materials. aluminium value chain
Offering training materials Develop and conduct from raw material
Platform for exchange and for upstream actors in the trainings and extraction to recycling.
on-the ground work. supply chain. educational products /
tools.

§  We engage actively in initiatives in order to


We want to be a   trigger broad supply chain improvements

driving force  

develop & introduce tools and standards
carry out joint risk assessments
  design & conduct trainings Pictures by www.unsplash.com, Icons made by www.flaticon.com!
Summary: Marco Philippi on the supply chain

Volkswagen is seeing the first signs of success in


supply chain CO2 reduction
The battery cell, steel and the e-machine are
hot-spots we are addressing

Given the complexity of the supply chain, 100%


transparency for all parts and materials is
currently not possible
Sustainability standards will become
a binding selection criterion on a
par with quality or price
Volkswagen actively engages in diverse
manufacturer and cross-sector initiatives
ID. INSIGHTS Sustainable E-Mobility

The reason why: Keynote: Module 1:

Climate Sustainable How to make


protection and e-mobility the ID. carbon
decarbonisation for all neutral
Georg Kell / Ralf Pfitzner Christian Senger Michael Liebert

Module 2: Module 2: Module 3: Module 3:

Supply chain Production Use phase Re-use /


recycling
Marco Philippi Liendel Chang Silke Bagschick /
Martin Roemheld
Thomas Tiedje
Production
Module 2

Dr. Liendel Chang


Head of Environmental Production
Volkswagen has addressed sustainable in-house production
for many years

Energy Energy Climate


Efficiency Supply Projects
Targets for environmental improvement develop continuously

Vision
Zero
Impact
Factory

2025
- 45%
Role model.
2018 Sustainable.
- 25% Resource
2005 2010 2011 One program. efficient.
All sites.
One One attitude. Start of
product. All markets.
One label. Think
Blue.
Factory.
The brand has achieved significant measurable results

Total
environmental 27%
improvement
production 40%
Considerable
30% 28%
savings per car

48%

8%
2010 2018

25% target 2018 45% target 2025

Data as at January 31, 2019, subject to auditor’s confirmation


All plants exchange best know-how and benchmark measures

Kaluga
Pamplona
Palmela

Chattanooga
Emden
Puebla Pune
Silao Osnabrück Wolfsburg Poznan
Hannover Glogow
Chemnitz Polkowice
Kassel Braunschweig
Salzgitter Zwickau
Hannover Martin
Bratislava

Uitenhage
Analyses
All plants exchange best know-how and benchmark measures

Kaluga
Pamplona
Palmela

Chattanooga
Emden
Puebla Pune
Silao Osnabrück Wolfsburg Poznan
Hannover Glogow
Chemnitz Polkowice
Kassel Braunschweig
Salzgitter Zwickau
Sao Carlos Hannover Martin
Anchieta Bratislava
Taubate
Cordoba
Curitiba
Uitenhage
Analyses Pacheco
First we harvested the low-hanging fruits, now we are reaching
for the higher branches…

Compressed Base load Lighting Cold water Ventilation Paint shop


air systems systems systems systems

Site
questionnaire

On site analyses

Additional measures of the plants


Forum of
Experts
The paint shop is the most energy-intensive process

Other overheads

Plant level 30% 70%

Energy
Overhead costs

Subsection level

Press Shop Body Shop Paint Shop Assembly

Energy
< 10 % 10-15 % 50-60 % 10 %
consumption
CO2-efficient energy supply is the second field of action

Energy Energy Climate


Efficiency Supply Projects
Each production site has its individual decarbonisation path

-24.3%
Total CO2 emissions in tons per year

2010 2018
Data as at January 31, 2019, subject to auditor’s confirmation
Each production site has its individual decarbonisation path

-24.3% Zero
Own
CO2 emissions
Total CO2 emissions in tons per year

power
plants
?

External
electricity
supply
Heat Find and
Fuels for evaluate
processes
measures
for each site
2010 2018
Data as at January 31, 2019, subject to auditor’s confirmation
Zwickau plant: Despite production increase, absolute CO2
emissions have been reduced by 66% since 2010
258.007

248.915
Vehicles

Decarbonisiton progress generated:


+3% à ⅓ by switch to gas-porwed combined heat and
power plants (CHP)
Total CO2 emissions [t]

-66% à  ⅓ by switch to green energy supply

à  More then ¼ by energy efficieny measures

à  Rest achieved by own generation of PV and wind


158.000 energy

53.000

2010 2018
Forecast data for 2018, subject to auditor’s confirmation
Decarbonisation outlook at Zwickau Plant

Continuous optimization
-66%

3 Main Consumers
•  Heat
à electrification with green electricity
Total CO2 emissions [t]

•  Paint shop
à optimization planning and operation
158.000 •  Air conditioning
à intelligent controlling system

53.000
Compensation of the remaining emissions

2010 2018 Climate Protection Projects


Summary: Liendel Chang on sustainable production

Every unit of energy that does not have to be produced is the most
carbon-efficient one
Volkswagen focuse on CO2-neutral energy supply
Zwickau has already achieved a positive
CO2 performance due to this focus
ID. INSIGHTS Sustainable E-Mobility

The reason why: Keynote: Module 1:

Climate Sustainable How to make


protection and e-mobility the ID. carbon
decarbonisation for all neutral
Georg Kell / Ralf Pfitzner Christian Senger Michael Liebert

Module 2: Module 2: Module 3: Module 3:

Supply chain Production Use phase Re-use /


recycling
Marco Philippi Liendel Chang Silke Bagschick /
Martin Roemheld
Thomas Tiedje
Use phase
Module 3
Dr. Silke Bagschik
Head of Sales and Marketing, Product Line e-Mobility

Martin Roemheld
Head of e-Mobility Services, Product Line e-Mobility
Our planet is in danger!
Attractive features for customers concerning use phase
benefits from new possibilities of the MEB

Larger wheelbase Different


short overhangs! body styles!

Bigger wheel More space for


diameter! driver and passengers!

No centre tunnel! Rear- and four Luggage space! Central


wheel drive ! ~ combuster (ICE)! computer unit!
The ID. in most wanted body styles/sizes
The ID. DNA – defining an entire family

The new e-mobility era is more than just electric

ICONIC INSPIRING INTELLIGENT INFINITE INTUITIVE


DESIGN DIMENSIONS DATA DRIVE DEVICE

Basic requirements: Affordable // Large battery range // Fast charging // Strong residual value
The ID. DNA – defining an entire family

The new e-mobility era is more than just electric

ICONIC INSPIRING INTELLIGENT INFINITE INTUITIVE


DESIGN DIMENSIONS DATA DRIVE DEVICE

Basic requirements: Affordable // Large battery range // Fast charging // Strong residual value
Scalable battery offers customers individual ranges suitable
for daily use

330 WLTP Above 550 WLTP


Scalable battery offers
scalable
individual ranges
from 330 to 550 km (WLTP)

* winter operation at -7 degree celsius


Optional heat pump makes comfortable climate in winter
without reducing battery capacity and range

Using waste heat from power trainAbove


330 WLTP
and550 WLTP
energy
from ambient air, the optional heat pump
raises range by about 30% and saves about
3 to 4 kwh /100km of battery capacity

* winter operation at -7 degree celsius


The ID. will realize attractive costs of ownership

Total Cost of Ownership (TCO) parity compared to internal combustion engine (ICE)

CoO (Cost of Ownership)

Subsidies

Purchase/leasing costs
Green operation is one of the core aspects of sustainable mobility

Efficient Green
Energy
Green Powertrain

Operation

Green Green
sharing routing
The electric powertrain is the most efficient one

Electric vehicles are much more efficient. With the same energy input, they can drive four times
as far as a comparable diesel.

100 km 400 km

6 l diesel = 60 kWh

~16 kg1 CO2 /100km ~4,5 kg2

1) Based on DEKRA article 1 l Diesel emits 2.65 kg CO2 | 2) Based on European Energy Agency (0.296 kg per kWh for European electricity mix)
Volkswagen offers green energy for all charging use cases

@Home @Work @Public @Highway


50% of use cases 20% of use cases 25% of use cases 5% of use cases
•  Equipping dealer •  IONITY Joint Venture
•  Affordable VW Wallbox •  VW Fleet Consulting
infrastructure
Activity •  Foundation of power •  electrifying Volkswagens
supplier Elli production locations

Green Energy option


ü ü ü ü
Mobility Service Provider
(Find, Charge, Pay)

Charge Point Operator Misc .


Talking about green energy – its share is increasing worldwide!

Even today, the global power mix makes e-mobility greener than any combustion engine.
According to BloombergNEF the overall share of sustainable energy supply will be 63% by 2040.

EU1
US2 China3

today 2025 today 2025 today 2025


green energy
remaining gray energy

The lights will not go out – there is enough power!

The German Federal Government announced 1 million electric vehicles in Germany


by the end of 2022. These will increase the power consumption by only 0.5%4

Sources: 1. Statista, Federal Ministry for Economic Affairs and Energy | 2. Statista, U.S. Energy Information Administration | 3. International Energy Agency | 4. Based on the following assumptions: 16 kWh / 100 km energy demand, average mileage
per vehicle and year: 15,000 km, overall electricity consumption in Germany per year: 517 TWh.
Volkswagen supports sustainability and easy charging by
offering green energy and wallboxes

Elli Green Energy Wallbox Portfolio

+
  Green energy product for   Modular AC Wallbox with up to 11 kW
private and small business customers   DC Wallbox offers up to 22 kW
  100% CO2-neutral   Market introduction together with ID. Neo
  Supports new sustainable energy facilities   Cost-effective and safe
Elli supports B2B fleet consulting for energy products

Analyze @Work
Analyze the individual
e-mobility potential +
Green energy
Evaluation of
Recommend @Home
e-mobility potential per car
Recommend
best fit electric cars +
Best fit wallbox Green energy

Implement @Public
Implement Elli portfolio
to ensure carbon neutral +
operation
Charging card Charging app
ü  Reduce overall fleet energy consumption by up to 75%
ü  Cover remaining energy demand with green energy
Elli fully integrates into customers’ electric life

Photovoltaic
  Green energy for the complete
household

  Intelligent charging
e.g. by integration of
home storage solutions and photovoltaic

  Grid integration
Vehicle-to-gGrid technology to support
Electric
heat pump grid stability

  Share your Wallbox


Increasing semi-public charging
Home storage
infrastructure especially by fleet
customers
Volkswagen enables green routing to public charging stations

?
ü

ü? ?

Green
charging
only?

? ü?
ü
?

It is difficult to evaluate the type of Using We Charge the customer can decide
energy used for public charging easily whether to use green energy or not
Volkswagen offers carbon neutral car sharing, starting
with 2.000 cars in Berlin

Our holistic mobility offer


includes:

  Right car with right


powertrain (100% electric)

  Right energy (100% green)

  Acceptance thru right


fleet size

  Easy usability
ID. owners have all options for carbon neutrality during
use phase

§  Volkswagen covers all the aspects of CO2-neutral driving particularly in the use phase
  e.g. Elli green energy, affordable wallbox, fleet consulting, equipping dealer infrastructure
and production locations, green routing, carbon neutral car sharing
Yet, awareness is the key to success
Information and knowledge have an high impact on purchase interest
.
Germany France

Purchase interest Purchase interest


„definitely" to „possibly" „definitely" to „possibly"
41%
+61% 80%
+16%

Before general After general Before general After general


e-mobility information e-mobility information e-mobility information e-mobility information

Definitely Possibly Definitely not


Likely Not likely

[PC35a]: How likely are you to purchase an electric car in the next three years?
[V9145]: Considering all information you have received, how likely is it that you will purchase an electric vehicle within the next 3 years? Base: Germany n=807 / France n=99
Reference: 2017 EU Clinic
Many customer concerns of today will be solved soon

Price level of a 330km to 550km Charging 80 % in Shopping SML Flatrate Zero CO2 Safe choice-
Golf with WLTP only 30 minutes experience: Fun approach, 8 delivery to access to all
comparable to buy – where & years warranty cities
your
power output how I want it
and equipment doorstep –
keep it that
way!
Summary: Silke Bagschik and Martin Roemheld on the use phase

CO2-neutral use of e-drive is a core aspect of


sustainable e-mobility

Customers decide whether they want to


drive CO2-free

Volkswagen enables green use – no matter


where the vehicle is charged

ID. answers all purchasing concerns: Attractive


price-performance ratio throughout the life cycle,
sufficient range, charging experience,
and carbon neutrality
ID. INSIGHTS Sustainable E-Mobility

The reason why: Keynote: Module 1:

Climate Sustainable How to make


protection and e-mobility the ID. carbon
decarbonisation for all neutral
Georg Kell / Ralf Pfitzner Christian Senger Michael Liebert

Module 2: Module 2: Module 3: Module 3:

Supply chain Production Use phase Re-use /


recycling
Marco Philippi Liendel Chang Silke Bagschick /
Martin Roemheld
Thomas Tiedje
Re-use / recycling
Module 3

Thomas Tiedje
Head of Technical Planning, Volkswagen Group Components
Sustainable e-mobility includes innovative end-of-life solutions
The lithium-ion-battery is a key factor in the Volkswagen e-mobility offensive

For several reasons, strategic goals include holistic concepts for re-use and recycling

1 2 3
Smaller CO2-footprint Less recycling expenses More resource security

Diesel 29
29 11
9 10077 141
Batterie <1
BEV
(EU mix) 57 51 37
62 120
<1
Vehicle production Fuel provision Use phase
(cradle to gate) (well to tank) (tank to wheel)

!  Hot-spot: High CO2 emissions !  Avoidance of logistic and !  Preserving strategically important
during battery production disposal costs resources
!  Closed loop recycling enables
resource security
Volkswagen Group Components has end-to-end responsibility
for the entire service life of the battery

Our focus today!

…!

ü
û
Cell production Battery systems 1st Life Analyse 2nd Life Recycling
Second life safeguards sustainable re-use of batteries

Center of Group Components plant


Excellence Criteria! Hanover
!
(CoE)
Salzgitter!

Analysis!
Battery returns! Disassembly! 2nd Life!

Recycling! Shredding! Drying! Sieving! Air classification!


Material returned to
production process!

Black powder! Steel! Separator! Aluminium, copper!


Volkswagen invented the first power bank for e-cars

Battery storage: 200 kWh – 360 kWh


2 x DC and 2 x AC charging

ü  Enables second life of HV batteries ü  Charges up to 4 cars simultaneously

ü  Flexible and self-sufficient ü  Production ramp-up as of 2020


Recycling processes are safe, validated and scalable
Salzgitter pilot plant scales proven recycling process as of 2020

End-of-life! Cell
battery! modules!
Disassembly! Crushing! Drying! Sieving! Fraction separation!

Pilot line!

! Cables!
Material ! Electronics!
returned! ! Steel! Steel! Separator! Aluminium,
! Aluminium! copper!

Volkswagen and partners!


Hydrometallurgy!
!
Black powder! Usable nickel ,
manganese, cobalt!
!
!
The pilot line will improve recycling efficiency considerably

State of the art: 53%* Planning Salzgitter pilot line: 72%* Target: 97%*

Separator
Electrolyte + conducting salt
3% 9% 3% 9% 3%
Graphite 9%
16% 16% 16%
14% 14%
Nickel* 14%
Copper foil
3% 3%
Aluminium 3%
3% foil 3%
4% Aluminium 4% Cobalt* 3%
3% 4%
sheets 3% 3%
3% 4% 3% 4%
Connectors Manganese* 3% 4%
2% 2%
4% 4% 2%
3% Plastics 3% Lithium* 4%
3%
Copper + electronics

29% 29% 29%


Material recycling Aluminium housing
No material recycling
* Percent by weight per battery system
Summary: Thomas Tiedje on re-use / recycling

The Volkswagen brand is doing everything it can to make


e-mobility sustainable
Together with Volkswagen Group Components, we are
working on a battery recycling concept to return raw
materials to the production process chain
The battery is either recycled at the end of its vehicle
life cycle – or put to second use in new products
such as flexible charging stations