While lithium batteries are now ubiquitous and have many important applications, there have long been concerns over the risk of fire or even an explosion if they are mishandled. Likewise, lithium batteries come with other concerns such as high costs for long duration energy and limitations due to the size and number of electrodes (which store the energy) – meaning they are not always the best method to store energy for larger scale applications.  Entersmall cap MGX Renewables (CSE: MGXR) and its MGXR Energy Storage System – a non-lithium based energy storage system that offers a better solution than lithium based batteries for a wide range of energy storage applications.  INVESTMENT SUMMARY  Today's lithium based batteries are much safer and much less of a fire risk than in the past, but precautions still must be taken when charging and discharging. Other safety issues include manufacturing defects, faulty chargers damaging a battery's protection circuit and problems with cold temperature charging.  Lithium-ion batteries are also nearing their theoretical energy density limit, come with high costs for long duration energy (e.g. $400 per additional kWh) and are limited by the size and number of electrodes (which store the energy). After being spun off from MGX Minerals, small cap MGX Renewables (CSE: MGXR)recently began trading on the Canadian Securities Exchange. The Company has developed the MGXR Energy Storage System based upon unique patented zinc-air battery technology where the energy is stored in the form of zinc particles that are similar in size to grains of sand. Zinc-air batteries are made with zinc, magnesium and potassium hydroxide which are in abundance, have stable prices, are environmentally friendly (non-toxic in case of leak) and have a long life with low degradation in a closed system. Also, no cobalt or lithium is needed to make them. Teck Resources Ltd has invested $13 million in MGX Renewables for research and development purposes plus $2 million in government grants have been received to date. In addition, production of the first 300 cathodes was announced at the start of September.  Lithium Batteries Are Ubiquitous But Have Limitations The origins of lithium based batteries date all the way back to 1912, but is was not until the early 1970's when the first non-rechargeable lithium batteries became commercially available with rechargeable ones being developed in the 1980s.  However, it was also known early on that the lithium metal can be unstable – especially during charging when the battery cell has the potential for a so-called thermal run-away where temperatures rise to the melting point for metallic lithium. In fact, the first large scale lithium battery recall happened in 1991 after one in a mobile phone released hot gases that burned a user's face.  Due to these safety issues, development soon shifted to non-metallic lithium batteries using lithium ions with a slightly lower energy density. These batteries are much safer; but precautions still must be taken when charging and discharging with any heat related battery failure being taken very seriously by manufacturers who tend to opt for a massive recall rather than risk massive lawsuits or more bad press in case of a serious incident (e.g. airlines also now restrict or outright ban lithium batteries in checked-in bags).  Aside from the risk of fire during charging and discharging, there are other problems associated with lithium batteries. As their cells have become more denser, just a small speck of metallic dust (likely left over from the manufacturing process) can cause a devastating chain reaction throughout all cells. Given the proliferation of low cost Asia production, replacement batteries could have such problems because they may not be as well manufactured as the original (branded or OEM) battery in the device.  Other safety concerns include faulty chargers damaging a battery's protection circuit (which can also lead to overheating) and problems with cold temperature charging as consumer grade lithium-ion batteries cannot be charged below 0°C (32°F). In such cold conditions, lithium batteries will appear to charge normally; but plating of metallic lithium will occur on the anode. Repeated charging at cold temperature can then lead to potential safety problems. Lithium-ion batteries are also nearing their theoretical energy density limit – forcing battery manufacturers to focus on improving manufacturing methods and look for ways to increase safety at the same time.  So while lithium-ion batteries are ubiquitous and work well in smaller consumer electronic devices like mobile phones, cameras and laptops, lithium based batteries still have limitations and potential safety risks that can limit their usage for other (especially larger scale) energy storage needs. However, a better alternative is being developed for those other needs.  MGX Renewables' Has Developed an Alternative to Lithium Batteries Last summer, small cap MGX Renewables (CSE: MGXR)began trading on the Canadian Securities Exchange after being spun off from MGX Minerals - a diversified Canadian resource and technology company with interests in global advanced material, energy and water assets.  MGX Renewables is developing the MGXR Energy Storage System:A modular energy storage system that is designed to deliver power in the range of 20kW - 50MW and energy storage in the range of 120kWh - 1GWh over extended periods of time.    The MGXR ESS system is based upon unique patented zinc-air battery technology (which in turn is based on an intellectual property portfolio of more than 20 granted patents) where the energy is stored in the form of zinc particles that are similar in size to grains of sand.  When the system is delivering power, the zinc particles are combined with oxygen drawn from the surrounding air; and when the system is recharging, the zinc particles are regenerated with the oxygen returned to the surrounding air. Since the energy storage capacity of the MGXR ESS system is determined only by the size of the zinc storage tank, the system offers a very cost-effective and scalable solution versus the fixed power/energy ratio of lithium ion batteries. Zinc-air batteries also have other key advantages over lithium-ion batteries, namely:  Energy is stored in the electrolyte which is only limited by the size of the plastic tank and the amount of fuel provided. Cost per additional kWh is $10 versus $400 for lithium-ion batteries. Wide temperature range of 20 – 70°C while lithium-ion batteries must be maintained between 30 - 40°C to avoid irreversible precipitation of solids. In addition, the MGXR ESS system uses raw materials like zinc, magnesium and potassium hydroxide that are abundant, have stable prices, are environmentally friendly (non-toxic in case of leak) and come with a long life and low degradation in a closed system. No cobalt or lithium is needed for the system to work - meaning there are no disposal problems associated with these potentially toxic elements.  There is also no threat of a thermal runaway like with lithium, or for that matter, most other types of batteries. This means the MGXR ESS system is not subject to new and more stringent safety standards placing constraints on the installation of other types of batteries or energy storage devices which also come with their share of problems. For example: Lead-Acid Batteries  High maintenance  Short life  Toxic  Hybrid Flow Batteries (Zinc-Bromine/Chlorine)  Limited duration  Dangerous fuel  Dendrite susceptibility  Redox Flow Batteries (Vanadium, Iron-Chromium)  Huge and heavy  Expensive fuel  Hydrogen Fuel Cells  Cost  Fuel availability and cost  Fuel storage difficulties  Diesel Generators  Unacceptable emissions  High fuel and logistics costs  Another benefit of the MGXR ESS system is that its designed according to a modular architecture enabling a wide variety of system configurations to be created from a small number of common subsystems. The system can be configured to support a wide range of discharge power, recharge power and duty cycle requirements. These applications include: Renewables storage (for wind, solar, tidal etc) Grid scale storage and energy trading & arbitrage Industrial, mine and factory on-demand and peak shaving Long duration storage and backup Stationary and portable energy for military and natural disasters Diesel generator replacement and augmentation Motive power (rail or marine) However, storage for renewable energy would be the most promising use for the MGXR ESS system because renewable energy suppliers face a big problem: They must immediately sell all the energy they produce – even if there is no demand for it (e.g. off peak hours).That's why MGX Renewables' motto is: The sun doesn't shine all the time. The wind doesn't blow all the time. MGX Renewables mass storage batteries for the rest of the time.    MGX Renewables is Making Steady Progress Teck Resources Ltd has invested $13 million in MGX Renewables for research and development purposes plus $2 million in government grants have been received to date. In addition, MGX Renewables has assembled an experienced team of professional engineers, scientists and business managers and continues to do so (e.g. a director was recently hired to set up and lead operations in Europe).   Finally and at the beginning of September, MGX Renewables announcedthe production of the first  300 cathodes for use in theMGXR ESS system with each 5kW fuel cell stack utilizing 50 cathodes. The planned initial scale-up of cathode production is for 36MW of annual equivalent capacity with a minimum storage of 8 hours or 288MWh of storage followed by the addition of similar scale fabrication machinery as necessary.   The Company continues to develop a hybrid manufacturing strategy of leveraging its proprietary designs utilizing fabrication partners for standardized components (such as injection molded pieces) with the most technically advanced and proprietary components (such as the fuel cell cathode) being manufactured in house.   Given MGX Renewables' progress so far and the wide range of applications the MGXR ESS system could be used for, the Small Cap Network will continue to watch the Company's progress closely over the coming months and years.