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MGX Acquires Mass Storage Battery Technology from Teck

Stephan Bogner Stephan Bogner, Rockstone Research
1 Comment| December 13, 2017


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While Tesla is taking aim at mostly the consumer market, ZinkNyx is pushing for solutions to the energy storage problem for commercial markets. Energy storage is becoming more relevant to large businesses. (Sourced from Business Vancouver)

Today, MGX Minerals Inc. announced to have signed a definitive agreement to acquire 100% of ZincNyx Energy Solutions Inc., a Canadian company that was founded in 2012 to develop a modular energy storage system (ESS). The company´s owner is mining giant Teck Resources Ltd., a $13 billion USD market cap. company that trades on the NYSE.

One the one hand, Teck´s divestment of ZyncNyx reflects a move to focus on its core mining assets and not technology – and on the other hand this deal is a windfall for MGX after almost $15 million of investments into the ZyncNyx technology which is nearing commercial deployment and includes 20 awarded patents with 3 additional patents pending filed this year alone.

It´s mainly an acquisition against equity (3.7 million restricted shares of MGX plus $250,000 CAD), with most of the restricted shares to be vested over 24 months as part of compensation and incentive plan for key employees. This gives me strong confidence that others, like ZincNyx/Teck, also believe in MGX´s vision and capability to create vast shareholder value, respectively that MGX´s current share price offers great appreciation potential. Teck sees broad implications in this technology for how society generates and uses energy. Jared Lazerson, President & CEO of MGX, explained in today´s news:

“By acquiring ZincNyx, MGX advances its mission of accelerating emerging energy and energy commodity technologies that disrupt the status quo. ZincNyx aims to bring energy storage to mass market through its patented zinc air technology, which offers lower-cost, long duration batteries capable of simultaneous charge and discharge.  MGX is proud to be a part of a fundamental shift from traditional high cost and difficult to acquire commodities such as lithium, vanadium and cobalt to low cost zinc in residential, remote and mass storage applications.”

ZincNyx has assembled an experienced team of professional engineers, scientists and business managers to execute the development and commercialization of a dependable renewable energy source. ZincNyx has developed a patented regenerative zinc-air fuel cell battery technology that efficiently stores energy in the form of zinc particles and contains none of the traditional high cost battery commodities such as lithium, vanadium, or cobalt. 

The company owns an intellectual property portfolio of more than 20 granted patents and it has received nearly $15 million CAD in financial support from its shareholders and Sustainable Development Technology Canada (SDTC) to develop the technology. It has strategic alliances with the National Research Council of Canada, the University of British Columbia and the Simon Fraser University. 

Energy storage is a growing industry in a fast-expanding market. From the ever-increasing need for renewable energy storage in developing countries to the requirement for reliable backup power in cities all over the world, ZincNyx offers an environmentally sustainable solution for a wide range of applications. ZincNyx has the lowest cost and most reliable technology for long run applications in the 10 kW to 1 MW segment. ZincNyx will target an estimated $10.5 billion market for its modular and scalable energy storage system: 

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“Solar is going to be the key. I think, though, with the right partners, we’ve got something great here,” ZincNyx CEO Suresh

Singh told Business in Vancouver. He expects the energy grid is going to change fundamentally in the coming years after companies spent years focusing on solar energy solutions. Because the price of solar has fallen so significantly recently, Singh said the focus is now being directed toward storing all the energy that is generated. Energy storage solutions have increasingly become a holy grail of sorts for tech companies.

According to Vancouver Sun: The market is driven mostly by other jurisdictions, such as California — where the utility regulator has mandated that renewable-energy suppliers start develop certain amounts of storage capacity — as well as China, Japan and Germany, where increasing amounts of renewable energy coming into the system can overwhelm their respective grids.

Energy storage is a billion dollar market with worldwide applications. With a cost-effective solution for energy storage, clean energy is made reliable and available as and when required with the ZincNyx technology. Development of modular beta units is complete with manufacturing plan of scale-up units underway. ZincNyx expects to deploy demonstration units in early to mid-2019. The technology allows for low cost mass storage of energy and can be deployed into a wide range of applications, including:

• Utility-scale storage and power grid load stabilization
• Long term backup power for industrial, commercial, and military facilities
• Remote location off grid and micro grid applications
• Diesel generator replacement or hybridization

ZincNyx’s technology consists of 3 main subsystems that use zinc and air to store energy in the form of zinc particles. When the system is delivering power, the zinc particles are combined with oxygen drawn from the surrounding air. When the system is recharging, zinc particles are regenerated and oxygen is returned to the surrounding air.

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Figure 1. Principle of Operation

Unlike conventional batteries, which have a fixed energy/power ratio, ZincNyx’s technology uses a fuel tank system that offers flexible energy/power ratios and scalability. The technology emits no greenhouse gases or pollutants and does not contain any heavy metals.

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Figure 2. ZincNyx U.S. Patent Coverage

What others think about the ZincNyx technology: www.zincnyx.com/blog-multi-author

Company Details

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MGX Minerals Inc.
#303 - 1080 Howe Street
Vancouver, BC, Canada V6C 2T1
Phone: +1 604 681 7735 
Email: jared@mgxminerals.com
www.mgxminerals.com

Shares Issued & Outstanding: 77,782,417

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Chart

Canadian Symbol (CSE): XMG
Current Price: $1.10 CAD (12/12/2017)
Market Capitalization: $86 Million CAD

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Chart

German Symbol / WKN (Frankfurt): 1MG / A12E3P
Current Price: €0.74 EUR (12/12/2017)
Market Capitalization: €58 Million EUR 

Previous Coverage

Report #32 “MGX cashes up for Lithium Extraction and Exploration: Backed by Private and Institutional Heavyweights“

Report #31 “MGX Revolutionizes the Lithium World - Commissions First Rapid Lithium Extraction System“

Report #30 “Full Steam Ahead: MGX Engages Senator Polanco (Ret.) to Head California Lithium Brine Strategy“

Report #29 “MGX to Target Geothermal Market for Extraction of Lithium and Gold“

Report #28 “MGX Minerals Commences Development of the World‘s First Petrolithium Field“

Report #27 “Canadian Government Backs MGX Minerals‘ Petrolithium Cleantech“

Report #26 “MGX Minerals Solves the Magnesium Problem of the Lithium Industry“

Report #25 “Hard-Rock Lithium Exposure for MGX“

Report #24 “One of the Largest Initial Oil Estimates in US History“

Report #23 “MGX starts Petrolithium pilot plant to deliver hard facts for strategic partners“

Report #22 “Time to bet: Sprott takes a position in MGX“

Report #21 “Petrolithium: First Come First Served“

Report #20 “Successful Independent Verification of the MGX Lithium Extraction Technology“

Report #19 “MGX to Drill the World‘s First PetroLithium Well in Utah“

Report #18 “MGX Reports Upgrading of Lithium Brine from 67 to 1600 ppm Lithium“ 

Report #17 “MGX technology nominated for prestigious Katerva Award, the Nobel Prize of Sustainability“ 

Report #16 “Unconventional oil play legend Marc Bruner to take MGX and PetroLithium to the next level“ 

Report #15 “Total Conviction: MGX forms PetroLithium Corp. to expand into the US oilfield brine markets“ 

Report #14: “MGX Extracts Lithium from Oil Wastewater - Begins Monumental Integration with Big Oil“

Report #13 "MGX Partners with Oil Major on Lithium Brine, New Energy Industry Facing Fundamental Shift“

Report #12 "Game Changing Potential: MGX Minerals‘ Pilot Plant for Rapid Production of Lithium Nears Completion“

Report #11 "MGX assays 34 g/t gold from surface sampling in British Columbia“

Report #10 “Official: MGX owns magnesium worth multi-billions of dollars and starts pilot plant shortly“

Report #9 “One of the world‘s largest lithium resources on the horizon?“

Report #8 “Ready for significant lithium brine work in Alberta“

Report #7 “At the forefront of Alberta‘s lithium brine riches“

Report #6 “Pioneering Lithium in Alberta: MGX Minerals Teams Up“

Report #5 “Time to Put a Lithium Production Process in Place“

Report #4 “MGX Minerals Taps Into Canada‘s Potentially Largest High-Grade Lithium Resources“

Report #3 “MGX Minerals Receives Mining Lease for 20 years (in British Columbia!)“

Report #2 “MGX Minerals Accelerates Towards Production“

Report #1 “MGX Minerals Plans To Enter The Magnesium Market“

Disclaimer: Please read the full disclaimer within the full research report as a PDF (here) as fundamental risks and conflicts of interest exist. The author hold a long position in MGX Minerals Inc. and is being paid a monthly retainer from Zimtu Capital Corp., which company also holds a long position in MGX Minerals Inc.
 


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Comments

Destinator
My understanding is that without Cobalt the energy is not stable in a battery. Cobalt is needed to stabilize the energy so that the batter does not catch fire like the Samsung phones did. I'm not sure that I want anything attached to my house that stores energy without the safety that Cobalt provides.
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December 14, 2017
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