Magnesium: Tough Rock to Crack (Battery-wise)

The last post “Disruptive Battery Technology” on January 14, 2022,  introduced a new series on potentially disruptive battery technologies.   Eight interesting technological developments and the target markets were outlined.  These eight along with the silicon anode technology that was discussed in the January 7^th post “Silicon Anodes:  Big Promises Not Yet Delivered” seem like fertile ground for promising investment opportunities.  Beginning with this post, investors can look in the corners of battery innovation for the players and their progress in building better batteries.

As noted in the last post, magnesium has been tested as a solid anode and as the active charge in the electrolyte.  With 50% higher volumetric energy density than lithium it is attractive as a replacement.  Additionally, magnesium does not form those annoying tree-like structures called dendrites that lithium creates inside batteries.  Thus magnesium can eliminate the need for additional dendrite-fighting compounds.  Rid of that layer the magnesium battery cell has nearly five times the volumetric energy density of a lithium ion cell.  Despite the fact that magnesium is heavier than lithium, the magnesium battery may have a cost and size advantage over  lithium ion batteries.

Sustainability advantages over conventional lithium ion batteries could also accrue to a magnesium battery given that magnesium is relatively more abundant than lithium.  It is also widely available around the world, showing some promise for a more even flow through world supply chains.

It is not all wide-open roads ahead for the magnesium battery.  Developers are still working on the right cathode-electrolyte configuration to match the magnesium anode.  The cathodes used in conventional lithium ion batteries are not up to the job of energy storage against the more energy intensive magnesium anode.  Likewise, the carbonates that have been used in the lithium ion battery electrolyte lead to a layer of deposited electrolytes that eventually disables magnesium ion transfer in the charge/discharge process.

Pellion Technologies was one of the developers undaunted by challenges to adopting magnesium as an alternative to lithium.  Indeed, “moving beyond lithium” was Pellion’s mission statement.  The company got as far as a prototype magnesium battery and claimed successful electrochemical activity with more than 50% more power than conventional lithium ion batteries.  Then magnesium was abandoned in favor of silicon as a means to enhance battery density.  The decision might have been related to the loss of a major venture capital sponsor, who reportedly got tired of waiting for a commercially viable version of the magnesium battery.

The scientists and engineers at Sanoh Industrial Company would probably agree with the direction Pellion has gone.  However, Sanoh has chosen to continue its magnesium battery development work right alongside its investment in solid-state battery developer Solid Power (SLDP:  Nasdaq).  Based in Japan, Sanoh relies heavily on support from universities in Japan to move forward with its energy development efforts.  As a privately-held company, it is tough for a minority investor to gain foothold in Sanoh.  Furthermore, as a seasoned manufacturing company with a highly competitive line of automotive components, it is highly likely Sanoh generates ample capital to invest in its research and development priorities.  Do not expect any private offerings of debt or equity as Sanoh likely does not need the extra money.

 

Since magnesium technology appears to be a tough nut or rather rock to crack in the battery world and the few who are still working on it as not casting about for capital, investors must move on to other technologies.  Next post will look at saltwater batteries.

 

Neither the author of the Small Cap Strategist web log, Crystal Equity Research nor its affiliates have a beneficial interest in the companies mentioned herein.