In a significant move for the electric vehicle (EV) industry, REE Automotive has announced a strategic partnership with Motherson Group, a global engineering and manufacturing specialist. The collaboration is aimed at accelerating the production of REE’s electric trucks, specifically the REEcorner® and P7 models, with Motherson overseeing supply chain management, module integration, and vehicle assembly. The partnership comes as REE looks to ramp up production to meet increasing demand for electrified medium-duty commercial vehicles.
Motherson, known for its strong ties with automotive giants such as Mercedes Benz, Volkswagen, and Ford, brings its extensive manufacturing capabilities to the table. With over 190,000 employees in 44 countries, the group will manage the supply chain for REE’s EV trucks, including U.S. assembly operations. By leveraging its expertise, Motherson aims to drive the commercialisation and industrialisation of REE’s technology.
The deal follows REE’s announcement of a $45.35 million fundraising round, which includes investment from long-term backer M&G Investments, Motherson, and Varana Capital. M&G, REE’s largest shareholder, led the round with a $20 million contribution, while Motherson added $15 million and Varana Capital invested $5.25 million. Following the deal, Motherson will hold a 19% stake in REE and will also nominate a director to the company’s board.
The partnership is expected to accelerate REE’s ability to service customers at scale, allowing for faster revenue growth and improved unit costs. Daniel Barel, Co-founder and CEO of REE, said, “This agreement with Motherson will enable us to overcome many of the challenges others face when scaling up production. Motherson’s global footprint and manufacturing expertise, combined with our technology, will push forward the transition to electrification and carbon neutrality.”
The collaboration is expected to support the growing market for electrified commercial vehicles, with REE estimating a significant demand for medium-duty electric trucks, particularly in the U.S., where over 240,000 such trucks are expected to transition to electric power in the coming years. REE’s innovative technology, which includes the world’s first software-driven, by-wire medium-duty electric truck, has attracted interest from fleet owners and manufacturers alike.
Motherson Vice Chairman, Laksh Vaaman Sehgal, expressed confidence in the partnership, saying, “We have been impressed by REE’s technology and product offerings. Our expertise in supply chain management and manufacturing will drive REE’s commercialisation efforts and help integrate them further into the global automotive ecosystem.”
Carl Vine, Portfolio Manager at M&G Investments, described the partnership as “transformational” for REE, adding, “This combination of core competencies from both companies will address the growing demand from fleet owners for a scalable, electrified product line-up.”
The offering is set to close by 19th September, with proceeds being used for general working capital.
For more information, please visit www.motherson.com and www.ree.auto.
