Samvardhana Motherson, one of India’s and the world’s leading specialised automotive component manufacturers, is to acquire an 11% equity stake (on a fully diluted basis and up to 19% non-diluted basis) in REE Automotive. Samvardhana Motherson International is to invest US$15 million (Rs 125 crore) to acquire the shareholding in the Israel-based REE Automotive, which is a developer and provider of electric vehicle platforms and EVs.
The investment is being done through Samvardhana Motherson International Ltd (SAMIL) via its wholly owned subsidiary MSSL Consolidated Inc.
The Nasdaq-listed REE Automotive essentially is an automotive technology company engaged in the design, development and integration of various vehicle components into a module and complete modular platform for commercial EV Vehicles with applications in mid- and last-mile delivery operations. REE Automotive, which is headquartered in Israel, has manufacturing facilities in Coventry, UK and in Austin, Texas, USA.
REE’s award-winning REEcorner technology incorporates vehicle drive components including steering, braking, suspension, powertrain, and control into a compact module between the chassis and the wheel.
With complete design freedom, vehicles powered by REE are equipped with the revolutionary REEcorner, which packs critical vehicle components (steering, braking, suspension, powertrain, and control) into a single compact module positioned between the chassis and the wheel, enabling REE to build the industry’s flattest EV platforms with more room for passengers, cargo, and batteries. According to the company, “REE platforms are designed to be proofed, autonomous-capable, offer a low TCO, and are expected to reduce the time to market for fleets looking to electrify.”
The REEcorner module, which is based on a portfolio of 175 patents registered and pending globally, is placed between the chassis and the wheel and is operated using a fully-by-wire control system. Its functionality and application are managed electronically, thereby simplifying the vehicle architecture and enhancing performance and flexibility for the vehicle. The company provides complete solutions from module, platform to fully assembled trucks (white labelling).
SAMIL will also be entering into a supply chain management agreement with REE Automotive to accelerate its industrialisation in a mutually beneficial commercial construct.
It may be recollected that in August 2020, Mahindra & Mahindra had signed an MoU with REE Automotive to explore development and manufacturing of electric commercial vehicles (ECVs) for global markets.
REE Automotive’s order book: 600 trucks by 2025
As per the company announcement on September 15, “SAMIL is to be the exclusive partner to manage the entire supply chain including sourcing, managing and integrating modules for REE. The supply chain arrangement includes sharing of efficiencies based on mutually agreed commercial construct leveraging SAMIL global footprint and operations.”
SAMIL plans to leverage manufacturing capabilities for components and integration for the REEcorner Module, and platform assembly to support full vehicle assembly, including assembly of P7 electric trucks in the USA. REE Automotive, which had a turnover of US$ 1.6 million in CY2023, is understood to have an OEM orderbook of around 600 trucks for execution by 2025.
All images: REE Automotive
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