REE enters NASDAQ with a valuation of $3.1 Billion

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.

Daniel Barel (left), REE Co-Founder & CEO and Ahishay Sardes, REE Co-Founder & CTO
Daniel Barel (left), REE Co-Founder & CEO and Ahishay Sardes, REE Co-Founder & CTO

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.

REE unveiled three fully modular EV Platforms

REE Automotive has unveiled new chassis platforms for three types of electric vehicles: an inner-city car that can also be used as a self-driving taxi, a car designed to transport passengers and cargo, and a light truck tailored to the US market and that is designed for intra-city drives. In fact, the three new platforms are targeting emerging trends in the world of smart transportation: autonomous taxis, Mobility-as-a-Service (MaaS), and the proliferation of urban delivery vehicles amid the increase of online purchases.

REE has developed a concept of a chassis in which the subsystems – suspensions, engine, steering, brakes, sensors, and the control and electronic systems – are integrated into the vehicle’s own wheels. The battery occupies the center of the vehicle throughout its entire length and width. This made it possible to develop a flat and modular platform that reduces costs and provides a great deal of freedom in vehicle design.

The P1 platform weights 1.3-ton and was designed for an urban delivery services. According to the company, it saves 67% of the chassis’ volume, which makes more room for the cargo itself. The vehicle is capable of carrying a load of 770 Ibs and driving at a speed of up to 75 mph for a distance of 136 miles on a single battery charge.

The P2 platform is designed to be used as an inner-city passenger car for up to 4 commuters, at a total GVW (Gross Vehicle Weight) of up to 2.5-tons. It provides 3 times the space saving for passengers, and can also be converted to a cargo and delivery vehicle. It reaches speeds of up to 75 mph and distances of up to 260 miles per single charge.

A blank slate for Car Manufacturers

The third platform, P4, is designed for up to 4.5-tons vehicles. It can be used as a medium-sized cargo or transport vehicle, as well as an electric convenience vehicle (ECV). The saving in space makes it possible to install a large battery that will suffice for a full day of travel. The vehicle is capable of traveling at speeds of up to 87 mph and reaches distances of to 217 miles on a single charge. It was designed for the world of autonomous driving and enables easy integration of ADAS systems. It also includes redundant systems for a high level of reliability and safety.

REE Automotive’s co-founder and CEO, Daniel Barel, said there is a growing demand for electric cars amid the growing need for deliveries, regulation standards to reduce carbon dioxide emissions, and the development of the Mobility-as-a-Service world. “Our modular platform can revolutionize electric transportation. It’s like a blank page on which the customers can build their own specific cars.”