REE Automotive Ties Up With BorgWarner Unit To Power Next-Gen EV Drive Systems

REE Automotive Ltd. (NASDAQ:REE) said Monday it has signed a strategic, non-binding memorandum of understanding with Cascadia Motion, LLC, a wholly owned subsidiary of BorgWarner Inc. (NYSE:BWA).

Details

The parties plan to collaborate on the development, manufacturing, commercialization, and sale of a next-generation electric drive unit (EDU) utilizing REEcorner technology for global original equipment manufacturer (OEM) electrification initiatives.

Under a phased commercialization approach that includes a royalty-based arrangement, REE would grant Cascadia Motion an exclusive, time-bound right to distribute a specially integrated EDU combining Cascadia Motion’s iM-125 motor-inverter unit with REEcorner technology.

The EDU will be co-developed by REE and Cascadia Motion.

The collaboration targets a compact, cross-platform EDU designed to accelerate OEM electric vehicle programs.

Paired with REE’s vehicle control units, the solution is expected to support advanced functional safety levels.

In addition, REE intends to provide Cascadia Motion access to its existing EDU assembly line, tooling, inventory, and supplier ecosystem to support production of the integrated units, subject to final commercial agreements.

Management Commentary

“Integrating Cascadia Motion’s iM-125 drive unit with REEcorner technology bolsters our portfolio of off-the-shelf electric drive solutions, providing our customers with even more flexibility in their electrification programs,” said Joseph McHenry, General Manager of BorgWarner Portland and the Cascadia Motion brand. 

Beyond the EDU collaboration, the companies will assess demand for full software-defined vehicle (SDV) solutions, including REEcorner hardware and REE’s software offerings, to provide OEMs with added flexibility and functionality.

The MOU reflects growing OEM demand for modern SDV platforms that enable faster development, new vehicle designs, and long-term adaptability.

By combining REE’s zonal architecture with Cascadia Motion’s propulsion technologies, the partners aim to support OEMs in transitioning to scalable, software-driven vehicle platforms.

Software-Defined Vehicle Technology Deal

Last month, the company disclosed a strategic deal with Mitsubishi Fuso Truck and Bus Corporation to launch a one-year evaluation program.

The program will aid in converting Mitsubishi Fuso’s eCanter electric truck into an SDV using REE’s zonal SDV architecture and x-by-wire technology.

The initiative will allow Mitsubishi Fuso to assess REE’s technology for next-generation commercial vehicles, accelerate the transition to connected and upgradable SDV platforms, and evaluate REE as a potential supplier for future scalable vehicle architectures.

REE Price Action: REE Automotive shares were up 4.64% at $0.7916 during premarket trading on Monday, according to Benzinga Pro data.

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