Today, ESS Tech (NYSE:GWH) is the latest special purpose acquisition company (SPAC) initial public offering (IPO) to hit the market. Today, ESS Tech hit the NYSE with a bang. Shares of GWH stock have thus far had an incredible morning, shooting more than 170% higher at the time of writing.
As with any new IPO, some volatility is to be expected. However, an opening day such as this one is truly remarkable.
Indeed, the business model underpinning ESS Tech is attractive to growth investors. This company focuses on commercializing iron-based battery flow. This allows for long-life energy storage, something in growing demand for renewable energy players.
Given the electrification trends we’ve seen take hold in recent years, investors are starting to think about this secular catalyst in a higher-level manner. By investing in the companies supporting this trend, investors can get long-term exposure to this robust secular catalyst with potentially less risk. In the search for alpha, this is the kind of risk-reward many investors are looking for today.
Let’s dive into a few things investors may want to know about high-flying ESS Tech right now.
Why Is ESS Tech and GWH Stock Soaring?
- ESS Tech is an Oregon-based provider of an innovative type of battery storage.
- These batteries are comprised mainly of iron, salt and water.
- By using readily-available materials for short-term power storage, the company aims to be a more environmentally conscious battery supplier.
- These batteries store power for between four and 12 hours.
- Accordingly, these batteries work well for renewable energy sources such as solar and wind.
- As a result of its reverse SPAC merger with Pangaea Ventures, ESS Tech now trades independently under the ticker “GWH” on the NYSE.
- ESS Tech raised approximately $308 million as a result of this deal.
- The company has yet to record revenue.
- However, ESS Tech aims to uses these funds to ramp up its business.
- Investors are hopeful ESS Tech will turn a profit in 2023.
- Bill Gates has backed ESS Tech through an investment from his fund.
On the date of publication, Chris MacDonald did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
