Get ready for a standout special purpose acquisition company (SPAC) that just completed its initial public offering (IPO). With the still-fresh debut of ESS Tech (NYSE:GWH), you can take a position in an intriguing clean-energy tech company — and best of all, GWH stock is still cheap.
Think about how “dirty” and inefficient traditional batteries are. They tend to pollute the Earth. On top of that, they typically don’t store energy for very long, so you have to replace them frequently.
ESS Tech is an innovative business that’s almost single-handedly trying to solve this problem. I say “almost” because there are other companies that are helping ESS Tech to go public, and thereby raise capital from the shareholders.
You could be one of those shareholders, and thereby support the future of sustainable battery technology. For all we know, GWH could be a $50 or even $100 stock someday — but for the time being, let’s just cover the basics.
A Closer Look at GWH Stock
It’s going to get complicated for a moment, so get ready.
ESS Tech is a portfolio company of Pangaea Ventures. It went public through a business combination with a SPAC known as Acon S2 Acquisition, which previously traded on the Nasdaq Exchange as STWO stock.
Did you follow all of that? If not, don’t worry. It gets easier from here.
As InvestorPlace contributor Chris MacDonald reported, GWH stock debuted for public trading on the New York Stock Exchange on Oct. 12. The share price shot up briefly to $28.92 on that day. However, within a couple of days, it retraced back to $16 and change.
At the end of October, GWH stock was still slightly above $16. So, you haven’t missed the window of opportunity with ESS Tech yet, as the shares are still quite affordable.
ESS Tech Wants to Transform the Grid
Founded in 2011, Oregon-based ESS Tech is in the energy storage business. To be more specific, the company commercializes batteries that are comprised mainly of iron, salt and water. That’s important, as these are known to be readily available and safe resources.
ESS Tech’s battery stores energy for four to 12 hours. This makes it ideal for powering renewable energy sources, like solar and wind.
Clearly, ESS Tech is an ambitious company, as its battery technology apparently has the potential to transform the power grid — at least, according to the investor presentation.
In pursuit of this objective, ESS Tech should be off to a good start (fiscally speaking.) The company raised approximately $308 million from the SPAC merger deal.
On top of that, here’s a bit of trivia to pique your interest: ESS Tech even has the financial backing of tech titan Bill Gates.
The Benefits of Innovative Battery Tech
ESS Tech isn’t the only business that purports to offer cleaner, more efficient energy storage. So, how is its battery different from what the competitors have to offer?
To sum it up, the company’s battery technology offers a number of benefits and advantages, as touted by ESS Tech.
First of all, the battery can replace coal and natural gas with solar and wind power. It offers greater resiliency to unexpected events, as well as improved grid flexibility.
ESS Tech’s battery is environmentally sustainable and can accelerate the clean-energy transition. Plus, from a technical angle, it provides power on demand with a response time of less than one second.
The battery’s materials are non-flammable, non-toxic and present no explosion risk. It’s made of easily sourced materials and recyclable components. Finally, it’s “plug-and-play,” with a 25-year operating life.
Also, in a tweet displaying a picture of what appears to be an ESS Tech energy storage system and a temperature gauge, the company reported yet another benefit:
“Our long-duration iron flow batteries do just fine in extreme weather, as this system running in the 115-degree heat of Nevada proves. No need for HVAC cooling and no risk of fire.”
The Bottom Line on GWH Stock
ESS Tech’s battery is certainly different, but is it superior to other clean-energy batteries available today? That remains to be seen. There are a number of distinct benefits, to be sure.
Given its standout features, feel free to consider a position in GWH stock while it’s still affordable. Supposedly, ESS Tech’s battery doesn’t explode, but the company’s stock might offer explosive price action someday.
On the date of publication, David Moadel 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.
David Moadel has provided compelling content – and crossed the occasional line – on behalf of Crush the Street, Market Realist, TalkMarkets, Finom Group, Benzinga, and (of course) InvestorPlace.com. He also serves as the chief analyst and market researcher for Portfolio Wealth Global and hosts the popular financial YouTube channel Looking at the Markets.