Israel’s REE inks supply deal with Indian auto parts maker, secures $45m in funds
A maker of a flat, light, versatile chassis that increases energy efficiency in electric cars, REE says the partnership will increase production to meet growing demand
Sharon Wrobel is a tech reporter for The Times of Israel.
Israel’s REE, a maker of a flat and modular chassis for electric vehicles, said it secured $45 million in fresh investments and inked a supply chain deal with India’s auto parts maker Samvardhana Motherson to increase production.
The Israeli Nasdaq-listed startup announced on Monday that as part of the strategic deal, Motherson, a supplier to major car manufacturers, including Mercedes Benz, Audi, Volkswagen, BMW, Porsche, and GM, will manage the sourcing and supply chain of all production parts, and support the assembly of its electric trucks. Motherson employs over 190,000 people across 44 countries.
Founded by Daniel Barel and Avishay Sardes, the Tel Aviv-based firm has developed a vehicle framework, a modular chassis, on which automakers can build various models of electric vehicles, including trucks. The framework is completely flat, like a skateboard, and incorporates all the classic components of the car — the motor, the steering system, the brakes, sensors, thermal systems, and electronics.
The reduced size and weight also increase energy and operational efficiency.
With the new agreement, REE plans to boost production to meet growing demand and anticipated fleet orders from large multi-national customers, the startup said.
“This agreement will enable us to leapfrog over many of the challenges others face when ramping up production,” said REE CEO Daniel Barel. “Motherson’s global footprint and manufacturing prowess combines perfectly with REE’s technology and innovation mindset.”
In addition, REE said it forged agreements with a group of investors, including M&G Investments, Motherson, and Varana Capital, for the sale of 11,001,941 shares of its ordinary shares at a purchase price of $4.122 per share. As part of the offering, M&G Investment, REE’s largest shareholder invested $20 million; Motherson $15 million, and Varana Capital $5.25 million.
Following the share sale, M&G will hold 16% of REE’s shares, Motherson will hold 19%, and Varana Capital 8%.
Barel and Sardes are also the founders of SoftWheel, a startup that developed flexible, shock-absorbing wheels for wheelchairs for a smoother ride and more stability without sacrificing speed.
