REE Automotive has announced a strategic partnership with Motherson Group, a global leader in engineering and manufacturing. The collaboration aims to enhance REE’s ability to scale production of electric vehicles (EVs) by leveraging Motherson’s extensive supply chain management and manufacturing expertise. Additionally, REE raised $45.35 million in a registered direct offering, led by M&G Investments. This partnership is expected to accelerate REE’s production capabilities and help meet growing global demand for electrified commercial vehicles.
Key Highlights
- Motherson Group will manage the supply chain and assembly of REE’s electric vehicle platforms, including the U.S. assembly of P7 electric trucks.
- The collaboration aims to expedite production, meeting the rising demand for electric trucks, especially in global fleet markets.
- REE’s $45.35 million direct offering was led by M&G Investments, with contributions from Motherson ($15 million) and Varana Capital ($5.25 million).
- Motherson will nominate a board member to REE’s board of directors, further strengthening ties between the two companies.
- The collaboration positions REE to capitalize on anticipated large-scale fleet transitions to electric vehicles.
Strategic Partnership Overview
Motherson, a global automotive supplier, will take charge of sourcing and managing the supply chain for REE’s REEcorner® technology and P7 electric trucks. This technology is revolutionary in that it integrates essential vehicle components like steering, braking, and suspension into one compact module, making REE’s EV platforms unique in the industry.
The agreement enables REE to scale production efficiently and meet growing demand from global fleet owners for electrified commercial vehicles. REE expects a significant increase in orders as a result, and the partnership will allow for faster production and delivery at a reduced cost.
Financial Highlights
REE recently secured $45.35 million in funding through a registered direct offering. M&G Investments, a long-term REE supporter, contributed $20 million, while Motherson and Varana Capital added $15 million and $5.25 million, respectively. The proceeds from this offering will be used for general working capital, further strengthening REE’s financial position.
Industry Impact and Future Growth
By combining REE’s cutting-edge EV technology with Motherson’s manufacturing capabilities, the partnership is poised to lead the electrified commercial vehicle market. This strategic collaboration is particularly timely given the expected growth in the electric truck market, with over 240,000 medium-duty trucks in the U.S. projected to transition to electric in the near future.
This partnership not only enhances REE’s production capacity but also accelerates its path to profitability, with expectations for faster revenue growth and improved unit costs.
Laksh Vaaman Sehgal, Vice Chairman of Motherson Group, emphasized the importance of this partnership, stating, “We are pleased to announce our long-term agreement with REE to accelerate its industrialization within a mutually beneficial commercial framework.”
REE Co-founder and CEO, Daniel Barel, remarked, “Motherson’s global footprint and manufacturing prowess combines perfectly with REE’s technology and innovation mindset.”
Bottom Line
This collaboration between REE Automotive and Motherson marks a significant step forward in the electrification of the commercial vehicle industry. With the support of Motherson’s global network and manufacturing expertise, REE is well-positioned to meet growing demand, enhance production, and drive the transition toward carbon-neutral transportation.
For more information about REE Automotive, visit www.ree.auto and for Motherson, visit www.motherson.com.