The Tel Aviv-based REE Automotive and 10X Capital Venture Acquisition Corp (“10X SPAC”) have entered into a merger agreement for a business combination that would result in REE becoming a publicly listed company. Following the close, NASDAQ will list the combined company under the ticker “REE”. REE Automotive has developed EV platform which is completely flat, scalable and modular. The transaction values the combined company at a value of $3.1 billion.
REE’a platform is based on two core innovations: the REEcorner integrates all traditional vehicle components into the arch of the wheel, and the REEboard that provides a completely flat and modular electric platform. Each REECorner is completely independent and powered by its own ECU and consists of Electric motor, Single wheel steer-by-wire, Single wheel brake-by-wire, Multi-ratio drivetrain, Preventive maintenance AI and OTA updates.
The REEboard’s scalable technology allows it to carry a very large variety of different permutations without the need to design a new platform for each vehicle type. Since it does not store any drive components it can be designed to take any shape. It is accessibility from all sides and utilizes CANopen and supports any ADAS interface.
The combined company is expected to receive approximately $500 million in gross cash proceeds from a combination of US $201 million in cash held in 10X SPAC’s trust account, and $300 million from committed strategic investors including Koch Strategic Platforms, Mahindra & Mahindra and Magna International. The capital will accelerate mass production of REEcorner technology and modular EV platforms, expected to begin in 2023.
REE is planning to utilize manufacturing capacity via a secured and exclusive global network of Tier 1 partners in over 30 countries, with point-of-sale assembly. This strategy is expected to enable REE to reach profitability by 2024. The existing shareholders and investors will continue to hold their equity ownership, including Mitsubishi Corporation, American Axle, and Musashi Seimitsu Industry.