Next Generation Aluminum for Automotive Closures & Outer Panels

J.P. McGuire

Global Director Automotive & Industrial Product Technology

Arconic

Arconic at a Glance

53%

~14.5kPeople Globally

10Countries*

24Manufacturing Locations*

34%of revenue comes from Industrialand Building& Construction

of revenue comes from Aero, Auto & CommercialTransportation

$7.3B2019 Revenue

*Excludes service centers.

A global leader in aluminum sheet, plate and extrusions, as well as innovative architectural building products

DanvilleLancaster

Tennessee

◼ 1.4M sq. ft.

◼ ~900 employees

◼ North America’s premier commercial

transportation and industrial product producer

◼ Specializes in aluminum sheet and cast plate – has

painting and multi-cut slitter finishing capabilities

◼ Industry-leading high strength alloys to support

demands of new powertrain technologies on

thermal management systems

◼ 3.7M sq. ft.

◼ ~900 employees

◼ Leading automotive sheet producer

◼ Recent industrial capacity extension enables

significant new revenue opportunities

◼ Highly flexible facility able to produce auto,

industrial, and packaging

◼ Over $400M of growth capex completed in the last

five years

◼ 300K sq. ft.

◼ ~40 employees

◼ Automotive finishing location

◼ Continuous heat treat line

◼ Slit to width and cut to length line

◼ Automotive blanking operations

Portfolio of Assets with Wide Range of Capability for Auto Products

Davenport ◼ 6.5M sq. ft.

◼ ~2100 employees

◼ Premier aerospace and automotive mill globally

◼ 220" mill and Very Thick Plate Stretcher enables

production of the thickest and widest plate in the

aluminum rolling industry - products only Arconic

Corp. can manufacture

◼ Over $600M of growth capex completed in the last

seven yearsEstimated replacement cost of $8-$10 billion

Aluminization will Outpace Automotive Growth – Ducker 2020 Report

Move from Steel to Aluminum Closures Biggest Driver

1) Source: CRU Group, updated July 16, 2020. Data reported in kmt by CRU and converted to Billions of lbs.

Auto Body Sheet Consumption, North America1

1.8

2.1

1.6

2.0

2.4

2.8

3.0

2018 2019 2020 2021 2022 2023 2024

Billio

n lb

s

8% CAGR

• More than 900 million pounds of demand growth from 2019 levels expected over next five years

• Light trucks and SUVs made up 72% of 2019 North American market share and those vehicles have the

greatest amount of aluminum content3

Body and Closure Sheet Penetration – All Vehicles2

2) Source: Ducker Frontier, August 2020

3) IHS Markit

Electrification of Vehicles Driving Greater Aluminum Usage

Lbs.

/veh

icle

Electric Vehicle Range Improvement with Greater Aluminum Content

Total Aluminum use per vehicle – ICE/hybrid vs BEV

Source: Ducker 2020

Electric vehicles are

15%-27% more

aluminum intensive

than combustion

vehicles

Arconic: Offering a broad array of light weighting solutions

Arconic Automotive Sheet Alloys

6

OU

TER

SIN

NER

SS

tru

ctu

re/

Cra

sh

HIG

H

FO

RM

HIG

H

ST

REN

GT

H

6111

C4A8

C4A8

5182

5754

C1A0

C1A0

6013

C6A1

New 7xxx C Alloys

C8A9

C1A0

C12Z

6xxx

5xxx

7xxx

Applications Products Key Attribute

Flat hem & sharp

styling

Inner/Deep draw

High strength/

Energy absorption

High form

Under

development

New High Form C1A0 enables styling and up to 57% weight savings

High Form C1A0 compared to CR5 Steel

Steel vs. High Form 6000 Aluminum Design

IF CR5 SteelC1A0

Aluminum

Thickness

(mm)0.60 0.90

Density 7.85 2.83

Final Yield

Strength

(MPa)

~170 ~175

Weight

Savings

Potential

Base 57%Reference. High Form 6000 trial in production die designed for IF steel.]

• 57% weight savings going from steel to aluminum • 30 Lbs. saved per vehicle on this BSA example

Evolving Styling Trend – “Sharp and Crisp”Audi Q4 E-tron Concept

Reference: https://www.audi-mediacenter.com/en/photos/album/audi-q4-sportback-e-tron-concept-1634.

New C1A0 High Form Alloy Exhibits Superior Stretch Bending

Steve Makosey, Arconic Technical Center, internal data

C1A0 Outperforms C4A8/6022 and 5182

Punch Radii 0.5mm to 50mmt = 1.1mm

CAE Models Indicate Improved Performance of Next Gen 6000

Comparison of CAE Results: C1A0, C4A8, 6022

Confidential 10

High Form C1A0 High Hem C4A8 6022

C1A0 High Form 6000 Comparable to IF Steel in Dent Resistance

Dynamic Dent Testing Result Comparisons for steel and aluminum

CR5 IF Steel and Next Gen High Form 6000 at 50 to 57% Weight Differential

6022-replacement alloys C4A8 and C1A0 provide improved shelf life and hemming

Arconic High Form 6xxx Alloy Products

Comparison of 6xxx Alloys

Alloy ApplicationFlat Hem Rating (15% PS)

1mo 3mo 6mo

6022-T43 inners, outers 3 3-4 4

C4A8-T43 inners, outers 2 2 2-3

C1A0-T43 inners, outers 2 2 2-3

1

2

3

4

5

Hem Rating Scale

90d

180d

270d

Improved Flat Hem

Baseline

High Paint Bake

6022 C4A8 C1A0

80

90

100

110

120

130

140

0 50 100 150 200

TYS

(MP

a)

Natural Age (days)

TN 6022-T43

TN-TN C4A8-T43

C1A0

051015202530354045

-15-10-5051015202530354045

Ma…

Minor Engr …

6022-T43

C4A8-T43

Reduced Natural Aging

Improvement

Pretreatment: Arconic 951™ Offers Greatest Bond Durability Performance

Comparison with TiZr

TiZr was the industry standard for conversion coated aluminum sheet (primarily European OEMs)

TiZr Arconic 951™

Arconic 951™ pretreatment has since supplanted TiZr as the performance-based standard

14

Proving Ground Simulation Exposure (Stress Ring Test)

5 yr Simulation

(45-50 cycles)

10 yr Simulation

(100 cycles)

Arconic 951™

Lab Historic Arconic 951™

Production Historic

(2010+)

Pretreatment: Arconic 951™ Offers Greatest Bond Durability Performance

Arconic 951™ is 4X to 9X Stronger than TiZr

Demonstrated superior bond durability performance across OEM customer base (highest retained strength in use)

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15

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