REE Automotive and Motherson Group Announce Strategic Partnership

Author

Slice of Manufacturing Team
September 23, 2024

Key Highlights:

  • Motherson to manage sourcing and supply chain for REE P7 electric trucks

  • Strategic investment: $45.35 million raised in direct offering

  • M&G, Motherson, and Varana Capital lead the investment

  • Collaboration aims to meet growing demand for medium-duty electric trucks

Notable Quotes:

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“We are pleased to announce our long-term agreement with REE to accelerate its industrialization within a mutually beneficial commercial framework. We have been truly impressed by REE's remarkable technology, exceptional product offerings, and robust team.”

Laksh Vaaman Sehgal, Vice Chairman at Motherson Group
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“Motherson’s global footprint and manufacturing prowess combines perfectly with REE’s technology and innovation mindset. This combination will benefit our customers and investors alike.”

Daniel Barel, Co-founder and CEO at REE Automotive
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"As shareholders in both companies, we are confident that the combination of core competencies will result in a sigh of relief from global fleet owners."

Carl Vine, Portfolio Manager at M&G Investments

Our Take:

This strategic partnership between REE Automotive and Motherson Group represents a crucial step forward in the electrification of the global automotive industry. Motherson’s engineering and manufacturing expertise will be instrumental in scaling the production of REE’s software-driven electric trucks, helping the company meet rising demand from multinational fleet customers. The $45.35 million investment signals strong investor confidence, particularly in REE’s ability to drive innovation in medium-duty electric trucks, a sector poised for significant growth.