REE Automotive raises $45m, signs strategic manufacturing deal
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Software defined platform developer REE Automotive has raised $45m and signed a strategic deal with Indian automotive supplier Motherson.
The $45.35m direct offering was led by M&G Investment, the largest shareholder in REE, who invested $20m. Motherson invested $15m in the round and Varana Capital, one of REE’s earliest investors, invested $5.25m.
Motherson will now oversee supply chain management, using its manufacturing capabilities for components, module integration, REEcorners, and platform assembly to support full vehicle production, including US assembly of P7 electric trucks.
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Motherson is a global engineering and manufacturing specialist and one of the world’s leading automotive suppliers with revenue of $17.2bn and deals with global OEMs such as Mercedes Benz, Audi, Volkswagen, Suzuki, BMW, Porsche, GM, Ford, Stellantis, Daimler Trucks, Paccar and John Deere.
“I believe this agreement will enable us to leapfrog over many of the challenges others face when ramping up production,” said REE Co-founder and CEO, Daniel Barel. “Motherson’s global footprint and manufacturing prowess combines perfectly with REE’s technology and innovation mindset.”
Motherson will manage sourcing and supply chain of all production parts and support the assembly of the REEcorner and REE P7 electric trucks, the first full by-wire, software-driven certified medium duty electric truck available on the market today. Motherson will also nominate a director to join REE’s board of directors.
REE says the funding and the deal with Motherson will materially accelerate its order growth with improved unit costs.
“We look forward to facilitating REE’s growth and technological advancement by expertly managing its supply chain and utilizing our world-class engineering and manufacturing capabilities to drive commercialization and industrialization,” said Laksh Vaaman Sehgal, Vice Chairman, Motherson Group. “We also want to strengthen REE’s integration into the automotive ecosystem by delivering unparalleled customer support across the value chain. We believe that this strategic partnership will contribute towards Motherson’s diversification and increasing content per vehicle strategy.”
“I believe that this is a transformational transaction for REE,” said Carl Vine, M&G Investments’ Portfolio Manager. “As shareholders in both companies, we are confident that the combination of core competencies from both sides will result in a sigh of relief from global fleet owners, who have been starved of an electrified product line-up that can be produced and serviced at scale. This is a win-win all round.”
www.ree.auto; www.motherson.com.
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