Press Release

Water Tower Research Publishes Initiation of Coverage Report on Aspen Aerogel (ASPN) Titled “An Electrifying Development Expected to Drive Growth”

CHICAGO, IL., March 16, 2021 – Water Tower Research has published an Initiation of Coverage Report on Aspen Aerogels (NASDAQ: ASPN). The report focuses on the company’s key drivers, milestones, obstacles and opportunities, and industry megatrends.

“Aspen’s growth has historically been driven by a combination of market share gains and cyclical variances in the energy infrastructure market (over $1 billion installed base) and sustainable building materials ($50 million installed base). Both markets are sizable markets with large total available markets (TAM). However, the company has reached a pivot point where its aerogel technology should be viewed as a broader platform on which new markets and applications can be developed,” said Shawn Severson, Co-Founder of Water Tower Research and Head of ClimateTech and Sustainable Investing.

Mr. Severson continued, “The historical applications will likely remain a key part of the company’s business, but products serving new, higher-growth applications have been introduced to the market. First, the company has created a modified version of its aerogel insulation materials branded PyroThin™, which is a highly effective thermal barrier used to mitigate thermal runaway in lithium-ion batteries in electric vehicles (EVs). The company estimates this market could be a $30 billion opportunity over the 2020 to 2030 period. Second, the company is developing a battery material technology that can meaningfully improve the performance of lithium-ion batteries, with the potential to be a $37 billion market over the same period.”

“At its core, this product expansion is creating a significant pivot for the company by enabling them to participate in the rapidly growing EV market. As one would expect, the EV market has much higher organic growth potential than the energy infrastructure and building materials markets. Furthermore, PyroThin™ is not simply a novel product or technology searching for a customer. Aspen has already secured a contract from a large US automotive OEM, the name of which has not yet been disclosed, with the potential to generate $1 billion this decade. Management believes this expansion into the thermal runaway application and battery materials will substantially improve the growth prospects over the next decade as they bring on additional customers.”

The full report can be downloaded HERE.

About Water Tower Research

At Water Tower Research, our mission is to bridge the information gap between companies and investors while reaching a much broader and diverse group of investors compared to the traditional and challenged equity research model. We provide “Research for the Other 99%®” on a platform powered by Wall Street veterans that are knowledgeable and experienced to help investors understand key strategies, industries, technologies, and drivers impacting the companies we cover as well as their peers. Water Tower Research uses a broad portfolio of tools to communicate with investors, including a traditional research platform, in addition to innovative and proactive products and digital strategies, providing valuable and consistent information flow. Please see the disclosures HERE.

Contact Information:

Shawn Severson
President & Co-Founder
Head of Sustainable Investing and BioEconomy Research
Water Tower Research LLC
www.watertowerresearch.com

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