L-H Battery Company, Inc. — Hazardous Materials Safety Interpretation

Page 1U.S. Department of Transportation Pipeline and Hazardous Materials Safety Administration 1200 New Jersey Avenue, SE Washington, DC 20590 January 30, 2024 Mr. Rick Riggle Chief Operating Officer L-H Battery Company, Inc. 8500 Bluegrass Blvd. NW Jeffersonville, OH 43128 Reference No. 23-0045 Dear Mr. Riggle: This letter is in response to your April 17, 2023, letter requesting clarification of the Hazardous Materials Regulations (HMR; 49 CFR Parts 171-180) applicable to lithium ion batteries transported by highway. In your letter, you describe a lithium ion battery module that weighs more than 12 kg with an aluminum casing. As depicted in the photographs you provided, the aluminum casing has a series of large ventilation slots on the top for heat dissipation, and a layer of poly carbonate that separates the cells from the casing and protects the cells from direct exposure. You ask whether the lithium ion battery module configuration with the large ventilation slots satisfies the “strong-impact-resistant outer casing” requirement as specified in § 173.185(b)(5). (1) Provided that the photographs—is strong and impact-resistant, aluminum casing with large ventilation slots—as depicted in your lithium ion (2) the batteries are secured to prevent inadvertent shifting, (3) the terminals do not support the weight of other superimposed elements, and (4) the lithium ion battery module configuration is further packaged in strong outer packagings, protective enclosures, or on pallets or other handling devices, the specific packaging configuration you describe and for which you provided photographs is acceptable for highway transportation in accordance with § 173.185(b)(5). I hope this information is helpful. Please contact us if we can be of further assistance. Sincerely, Office that it is the opinion of this T. Glenn Foster Chief, Regulatory Review and Reinvention Branch Standards and Rulemaking Division#

Page 2Hi Alice, Regards, -Breanna From: INFOCNTR (PHMSA) To: Dodd, Alice (PHMSA) Subject: FW: Request for Interpretation from L-H Battery Company, Inc. Date: Thursday, April 27, 2023 12:33:51 PM Attachments: Interpretation Letter 4.17.2023.docx.pdf Appdx A final.pdf Appdx B.pdf Please see the attached LOI request. Let me know if you need anything else. From: Atriano, Vincent <vincent.atriano@squirepb.com> Sent: Tuesday, April 18, 2023 7:16 PM To: INFOCNTR (PHMSA) <INFOCNTR.INFOCNTR@dot.gov> Subject: Request for Interpretation from L-H Battery Company, Inc. CAUTION: This email originated from outside of the Department of Transportation (DOT). Do not click on links or open attachments unless you recognize the sender and know the content is safe. CONFIDENTIAL BUSINESS INFORMATION UNDER 49 CFR 105.30 Dear Sir or Madam: Please find attached a Request for Letter of Interpretation from L-H Battery Company, Inc. addressed to Mr. Shane Kelley. Please note that only Appdx. A constitutes confidential business information under 49 CFR 105.30. Vincent Atriano Squire Patton Boggs (US) LLP 2000 Huntington Center 41 South High Street Columbus, Ohio 43215 T +1 614 365 2783 O +1 614 365 2700 M +1 614 579 4708Thank you. Partner F +1 614 365 2499#

Page 3April 17, 2023 Mr. Shane Kelley Director, Standards and Rulemaking Division U.S. DOT/PHMSA (PHH-10) 1200 New Jersey Avenue, SE East Building, 2nd Floor Washington, DC 20590 infocntr@dot.gov Re: Request for Letter of Interpretation under 40 C.F.R. § 173.185(b)(5) Dear Mr. Kelley: L-H Battery Company, Inc. has developed a module for new rechargeable lithium ion vehicle batteries. The batteries will be used to power new electric vehicles. The module is shown on the enclosed diagrams. See Appendix A.' The modules will hold 24 individual lithium ion cells. The modules have passed the tests specified in Section 38.3 of the UN Manual of Tests and Criteria (namely, T.1 Altitude; T.2 Thermal; T.3 Vibration; T.4 Shock; T.5 External Short Circuit; T.6 Impact/Crush; T.8 Forced Discharge.) See Appendix B. Thus, they are eligible to be offered in transportation. 49 C.F.R. § 173.185(a)(1). The dimensions of each battery module are 590(L) x 221(W) x 108(H) mm. The metal casing itself is made of sturdy aluminum, and weighs 31 kg. The aluminum is 2 mm in thickness. As you can see from Appendix A, the casing will enclose the cells on all sides. However, the casing contains a series (18) of large slots at the top for heat dissipation. Underneath the slotted aluminum casing is a layer of poly carbonate that separates the cells from the aluminum casing and prevents direct cell exposure. We believe that these battery modules will meet the special packaging authorization of 49 C.F.R. § 173.185(b)(5). They constitute "lithium batteries that weigh 12 kg (26.5 pounds) or more and have a strong, impact-resistant outer casing." The regulation does not specify that such casings have no slotted openings, or that such casings "fully enclose" the cells. Consequently, these batteries "may be packed in strong outer packagings; in protective enclosures (for example, in fully enclosed or wooden slatted crates); or on pallets or other handling devices, instead of packages meeting the UN performance packaging requirements in paragraphs (b)(3)(ii) and (iii) of this section." See 49 C.F.R. § 173.185(b)(5). Would you please confirm that our reading of 49 C.F.R. § 173.185(b)(5) is correct? 1 Please note that we are requesting confidential treatment of Appendix A under 49 C.F.R. § 105.30. Appendix Disclosure of these materials would reveal the proprietary design specifications of the battery modules to A constitutes a trade secret, and its disclosure could cause competitive harm to L-H Battery Company, Inc. competitors, and allow them to reverse engineer competing battery modules, resulting in economic harm to L-H Battery Company, Inc.#

Page 4Should you need any additional information, please let us know. Thank you for your attention to this request. Very truly yours, Rick Riggle, COO L-H Battery Company, Inc. 8500 Bluegrass Blyd. NW Jeffersonville, OH 43128 Enclosures#

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