1. Examining The Battery Quality and Standards for LEVs in Asia Vivian Wei General Manager, China Operations eCycleElectric Professional LEV Consulting Mar. 2012

2. eCycleElectric Consulting A Passionate, Experienced Team To Assist You Every Step of the Way - 42 years of experience in the bike industry - 16 years of experience in the e-bike industry - 77 satisfied clients in 12 countries and regions - 20+ years of experience in the motor business - 40+ media contacts in the EV and LEV world - 6,000+ contacts in the LEV industry worldwide - Offices in USA, China, Taiwan and Germany

3. Light Electric Vehicle Association Founded in 2009 and based in the US, LEVA today has over 200 members from 25 countries, over 40 global media partners and over 6000 industry contacts. The Light Electric Vehicle Association (LEVA) represents the strategic interests of light electric vehicle retailers, dealers, distributors, manufacturers and suppliers to promote the development, sale, and use of LEVs worldwide. Members receive support and educational resources to expand their businesses while initiating efforts to influence and adopt legislation, regulation, performance standards and general best practices in the light electric vehicle industry.

4. Outline LEV Battery Industry in China Battery Supplier Qualifications Definition of Quality in Different Markets Comparison of Different Battery Types Battery Manufacturer’s Perspective Examine and Control Cell Quality Examine and Control Battery Pack Quality LEV Specific Battery Testing LEV Manufacturer’s Perspective LEV Prototype Development Stage LEV Production Stage

5. LEV Battery Industry in China +29 million e-bikes produced in 2011 +0.5 million e-bikes exported in 2011 +600 lead-acid battery manufacturers in 2012 (down from +3,000 in 2011) +60 lithium battery manufacturers in 2012

6. Labor Intensive VS Fully Automatic

8. Manufacturing Dust Control

9. Quality Inspection Stations

10. Warranty+ Certificate ≠ Quality Warranty + Certificate ≠ Quality

11. Battery Supplier Qualifications Willingness to customize a function specific pack After-sales responsibility and commitment Management with battery expertise Strong R&D and engineering capability Required certifications and Insurance

12. How to Define Quality in Different Markets Safety Reliability Warranty Cycle Life Calendar Life Performance Climate Terrain Road Conditions Purpose of Use Intelligence

13. Different Markets Needs for Battery

14. Different Purposes of Use Shopping Commuting

15. Different Purposes of Use Picking up Kids Postal Services

16. Different Purposes of Use Food DeliveryRecreation

17. Lead Acid Battery Module Characteristics

18. Characteristics of Lithium-Ion Modules

19. Comparison of Different Battery Types

20. How to Realize Quality Require the extreme requirements and expectations of all the markets and make that your requirement. Build performance requirements into vendor requirements and testing protocol.

21. Examine and Control Cell Quality Raw Materials Components Assembly Equipment Assembly Process Testing Facility Testing Protocol

22. Examine and Control Cell Quality Work shopHumidity controlDust control level Slurry Room≤30%RH100,000 Coating Room≤20%RH10,000 Slitting Room≤30%RH100,000 Auto Winding Room≤1%RH10,000 Auto Assembly Room≤1%RH10,000 Humidity and Dust control will affect the self-discharge rate of the cells and ultimately the consistency of the cells.

23. Examine and Control Pack Quality ---Cell Consistency High-precision cell test equipments are needed to accurately test and group the cell voltage and resistance before pack assembly to ensure the consistency of cells. HIOKI high-precision voltage res istance test machine Match detector for c ells High precision, multi-f unction electrical performance test machine

24. Examine and Control Pack Quality --BMS Test To ensure the quality of BMS, each BMS has to be tested for all the performances. A BMS test system is needed to test the whole BMS function pre-assembly or post-assembly. BMS Test Items ：  over charge protection;  over discharge protection;  over current protection;  short-circuit protection;  BMS current consumption test;  BMS temperature protection test Power Battery Testing System

25. LEV Specific Battery Test Arbin high power charge/discharge test machine LEV performance test of complete bike Vibration test machine thermal shock test machine

26. Performance Test Compatibility Test Test the matching of packs, accessory products and chargers. Test Machine: Product and Charger Voltage, Internal Resistance Test Test the open-circuit volts, AC resistance Test Machine: Resistance/Voltage meter Rated Capacity Test the capacity when charge at 0.2C and discharge at 0.5C Test Machine: Discharge tester Electricity Maintain and Recovery Charge at 0.2C and store for 30 days, test the capacity; recharge, test capacity recovery. Test Machine: Discharge tester Cycle Test Charge and discharge the pack test the capacity after cycle Test Machine: Discharge tester Battery Indicator Test indicator condition at different electricity state Test Machine: Multi function meter

27. Environment Test Temperature Shock Put the pack in mutual exchange of high and low temperature, test the performance change Test Machine: Thermal Shock Chamber Vibration Vibrate the packs and test the performance change Test Machine: Vibration platform, discharge tester High/Low Temperature Capacity Test the pack capacity at high and low temperature Test Machine: Thermal Shock Chamber, charge/discharge tester

28. Safety Test High current discharge capacity Discharge the full-charged pack with high current and test the capacity Test Machine: Discharge tester Over charge/discharge protection Test the over charge/discharge protection voltage Test Machine: Discharge tester Over current protection Test the over protection current Test Machine: Discharge tester Pulse discharge Pulse discharge the pack with different currents, test the pack performance Test Machine: Discharge tester Short-circuit protection Short-circuit the pack and test if the pack has protection Test Machine: Short-circuit platform

29. Drive System Integration

30. Battery Testing-LEV Prototype Development Work with the supplier to develop a prototype pack for evaluation purposes. Conduct both bench (load and cycle testing) on the preliminary prototype and real world ride testing to flesh out any issues. Go back and forth a few times before getting it right. Send the complete pack to a third party test lab to do destructive testing to uncover any possible safety issues. Conduct a small pilot production, and go through the testing steps once more. Move to mass production and the IQC process if all of the pilot packs pass testing.

31. DAS-Data Acquisition System DAS is used conduct performance tests in real life rides, as well as test stand rides. Depending on the test results, battery parameters and controller parameters are adjusted accordingly. E-bike Performance Test Current Voltage Range Temperature Speed Battery Capacity

32. Battery Testing-LEV Production LEV manufacturers often work with their battery suppliers on a testing protocol of production battery packs for incoming quality control purposes. Supplier Test Random Inspection Full Inspection Sampling on the complete bike Test Ride

33. Supplier Test Batteries are required to be 100% tested at supplier’s end with the submission of a test report.

34. Random Inspection Physical Appearance Accuracy of Customer Logo Physical and Technical Specs Charger Performance Max Charging Voltage Discharging Capacity Test Cut-off Discharge Voltage

35. Full Inspection After random inspection, 100% inspection will be conducted on Physical Appearance Accuracy of Customer Logo Charging Port Discharging Port Battery Voltage Inspection Battery Capacity Inspection Logo Size and Location Inspection

36. Sampling on the complete bike Depending on the production model lot size, every 20 to 50 bikes, one bike will be randomly selected for its complete performance charge / discharge test to ensure under load the bike performance, battery performance, and charge / discharge characteristics meet the standards set for the particular model.

37. Test Ride To ensure the battery performs properly on the bike, every battery will be installed on the bike for a test ride. During the ride, the actual bike functions are switched to test for performance consistency.

38. Our Most Rewarding Moment

39. Fairly Bike Manufacturing Company, Ltd. Tianjin Flying Pigeon Electric Bicycle Manufacture Co., Ltd. Tianjin Lishen Battery Joint-Stock Co. Ltd. Currie Technologies Special Thanks To:

40. Thank You! For any questions, please contact Vivian Wei at vivian@ecycleelectric.com vivian@ecycleelectric.com