REE Automotive Ltd. (REE) announced Monday that it's joining forces with Cascadia Motion, LLC, a wholly owned subsidiary of BorgWarner Inc. (BWA), to tackle one of the trickier parts of electric vehicle development: getting drive systems that actually work across multiple vehicle platforms.
The companies signed a non-binding memorandum of understanding to collaborate on developing, manufacturing, and selling a next-generation electric drive unit (EDU) that combines their respective technologies. Think of it as a marriage between Cascadia's propulsion expertise and REE's unconventional corner-based vehicle architecture.
How the Partnership Works
Here's the arrangement: REE will grant Cascadia Motion an exclusive, time-limited right to distribute a specially integrated EDU that combines Cascadia's iM-125 motor-inverter unit with REEcorner technology. The deal follows a phased commercialization approach with a royalty-based structure, meaning REE gets paid as units move through the market.
The two companies will co-develop the EDU with an eye toward creating something compact and adaptable enough to work across different vehicle platforms. The goal is to help original equipment manufacturers speed up their electric vehicle programs without having to reinvent the wheel (or in this case, the drive unit) for every new model.
When paired with REE's vehicle control units, the integrated solution is expected to support advanced functional safety levels, which matters quite a bit when you're trying to convince auto manufacturers to bet their product lines on your technology.
REE is also offering something valuable beyond just the technology itself: access to its existing EDU assembly line, tooling, inventory, and supplier ecosystem. That infrastructure could help Cascadia Motion ramp up production of the integrated units faster than building everything from scratch, though the arrangement is subject to final commercial agreements.
What the Companies Are Saying
"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.
But the partnership doesn't stop at electric drive units. The companies also plan to explore demand for full software-defined vehicle (SDV) solutions, which would include REEcorner hardware plus REE's software offerings. The idea is to give OEMs even more flexibility and functionality as they navigate the transition to electric and software-driven platforms.
The memorandum reflects something the industry has been talking about for a while: growing demand from automakers for modern software-defined vehicle platforms that enable faster development cycles, new vehicle designs, and long-term adaptability. By combining REE's zonal architecture with Cascadia Motion's propulsion technologies, the partners are positioning themselves to help OEMs make that transition to scalable, software-driven platforms.
Building Momentum
This partnership comes on the heels of another strategic deal REE disclosed last month. The company signed an agreement with Mitsubishi Fuso Truck and Bus Corporation for a one-year evaluation program designed to convert Mitsubishi Fuso's eCanter electric truck into a software-defined vehicle using REE's zonal SDV architecture and x-by-wire technology.
That initiative gives Mitsubishi Fuso a chance to assess REE's technology for next-generation commercial vehicles, accelerate its transition to connected and upgradable SDV platforms, and evaluate whether REE could become a supplier for future scalable vehicle architectures. It's essentially a test drive before committing to a longer-term relationship.
Investors seem cautiously optimistic about REE's recent partnerships. Shares of REE Automotive were up 4.64% at $0.7916 during premarket trading on Monday.