E-mobility technology company, REE Automotive (“REE”) has entered into a merger agreement with 10X Capital Venture Acquisition Corp (“10X SPAC”), a special-purpose acquisition company. The business combination aims to result in REE becoming a publicly listed company, NASDAQ listed under the “REE”ticker.
REE has developed the highly modular REEcorner technology, which integrates critical vehicle components (steering, braking, suspension, powertrain and control) into the arch of the wheel. REE’s proprietary x- by-wire technology is agnostic to vehicle size and design, power source and driving mode (human or autonomous). REE says that automotive platforms utilising REEcorners can present significant functional and operational advantages over conventional EV “skateboards” currently available on the market.
The REEcorner technology enables fully flat and modular EV platforms that can carry more passengers, cargo and batteries compared with conventional electric or internal combustion (IC) vehicles, thereby improving next generation e-Mobility for new electric and legacy OEMs, logistics companies and service providers. Compared to IC and electric vehicles, REE says the platform offers customers competitive pricing and lower TCO with faster time-to-market.
The technology is targeted at the commercial and MaaS markets, enabling them to build mission-specific electric vehicles as part of the shift towards electrification and autonomy. The shift is driven by the growth in e-commerce, government regulations on carbon emissions and public policy, as well as newly developed mobility concepts which require complete freedom of design for the build-out of any size or shape of electric or autonomous vehicle – from Class 1 through 6.
For OEMs, incorporating REEcorner technology into EV product portfolios enables fast and efficient entry into EV markets. Mobility service providers such as delivery and logistics companies, e- commerce retailers, and ride-sharing companies can leverage the REEcorner architecture to build EVs based on their exact needs and specifications, while no longer being limited to purely “off-the-shelf” offerings.
REE’s in-house drive-by-wire, brake-by-wire and steer-by-wire technology enables lower TCO through fast REEcorner replacements in under an hour, over-the-air (OTA) updates and hardware upgrades. The data harvesting capabilities can be used to further reduce TCO via intelligent preventative maintenance features. The technology is backed by an extensive intellectual property portfolio across engineering and design, with over 60 patents to date.
REE is positioning itself in the market as as a horizontally integrated player providing a full system solution across most market segments in all classes. REE’s focus on the REEcorner architecture allows it to “complete, and not compete with”, vertically integrated OEMs, mobility and logistic players by allowing them to concentrate on their core service offerings and get to the market faster at a fraction of the cost. As a horizontal player in the EV market, REE works with traditional Tier 1 suppliers and their global manufacturing capacity, instead of competing directly with them.
REE will implement a CapEx-light manufacturing model comprised of globally located integration centres, which creates scalable and agile unit economics. REE will utilise 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.
“We believe that our technology will become the cornerstone for our customers to create better and greener e-Mobility services that will be the backbone of our society. Being the only truly horizontal player in the market today positions us to play a major role in accelerating electrification of mission-specific vehicles in multiple sectors such as delivery fleets, Mobility-as-a-Service, e-commerce retailers and new mobility players. There is no limit to who we can serve, as REE is unbound in its capabilities and opportunities.” said Daniel Barel, REE Automotive’s co-founder and CEO. “We are truly excited to be partnering with Hans Thomas and the 10X Capital leadership team as we begin our next chapter as a publicly listed company in our journey towards a better, cleaner and more sustainable e-Mobility future.”
REE says it has a “significant pipeline” of orders, reflected in its MOUs with top global automotive and mobility companies.