Dow Kokam Announces Investment in Battery System Production Facility in France

Paris, France – May 26, 2010

Four months after acquiring Dassault-SVE, a developer of performance battery and energy management systems and formerly a wholly owned subsidiary of Groupe Industriel Marcel Dassault (Dassault), Dow Kokam announced a €5M investment in a France-based production facility of lithium-ion battery systems.

Dow Kokam France, now a wholly owned subsidiary of Dow Kokam, has completed the construction of its first production facility designed to manufacture as many as 15,000 battery packs of 7 kWh to power 5,000 fully electric vehicles annually (assuming a 21 KWh battery system), further enabling Dow Kokam's entry into a range of applications including automotive, transportation, defense and utilities.

The production facility, known as Le Bouchet 2, is scheduled to begin commercial production in November 2010 and demonstrates Dow Kokam's drive to commercialize its cell and pack capability on a mass scale.  The new facility exemplifies Dow Kokam’s global supply capability by adding to its existing production facilities in the U.S. and its access to supply in Korea.

“Commercial production of our effective temperature control system and accurate cell management capability brings unparalleled lifespan and usable energy to the energy solutions developed by Dow Kokam,” said Jean Francois Herchin, President of Dow Kokam France.

Having achieved unmatched performance of its battery system in its current testing and prototyping facility, Le Bouchet 1, Dow Kokam France is expanding to commercial scale in response to the critical need for energy storage for electric vehicles.

An ambitious investment plan in France and the United States
Le Bouchet 2 is part of an ambitious investment plan in Europe and the United States. The first phase of construction of an 800,000-square-foot, 1.2 billion-watt-hour battery cell and pack production facility has already begun in Midland, Michigan and will equip the equivalent of 60,000 electric vehicles. Dow Kokam has secured a U.S. Department of Energy grant of $161 million dollars and tax credits totaling $180 million dollars from the State of Michigan.

By accelerating its production capability, Dow Kokam is responding strongly to the market needs for energy storage in transportation, industrial and utility applications.

Highly integrated over the whole value chain (from chemical materials to complete battery systems), Dow Kokam is a unique partner for all electric vehicle stakeholders, due to its capabilities to meet current customer needs while simultaneously developing next generation technologies.

A unique response to energy storage for vehicles, and more
Due to the strength of its partnerships with Dow Chemical, Kokam America and Dassault-SVE, Dow Kokam is the only supplier in the world capable of impacting all of the major elements of the supply chain.

Dow Kokam has the unique capability to provide cell technology and pack capability. and is the only battery system manufacturer with system integration capability in transportation.

About Dow Kokam
Dow Kokam brings technologically advanced and economically viable battery solutions to the transportation, defense, industrial and medical industries.  Uniting Dow, TK Advanced Battery and Dassault SVE creates the first battery and energy management systems manufacturer to combine viable, scalable large-format battery technology with the market franchise, manufacturing expertise and market knowledge necessary to become the clear partner of choice across industries.

Dow Kokam was established in 2009 to develop and manufacture advanced energy storage technologies for the transportation and other industries.  The company is owned by The Dow Chemical Company, TK Advanced Battery LLC and Groupe Industriel Marcel Dassault.

Chris Grams
(312) 729-4364
cgrams@golinharris.com