1. REE partners with Cascadia Motion for next-gen electric drive units. 2. Global EDU market expected to grow at 9% CAGR until 2035. 3. REE’s technology enhances OEMs' EV development capabilities. 4. Exclusive distribution option granted to Cascadia for new EDUs. 5. Collaboration aims to accelerate transition to software-defined vehicles.
FAQ
Why Bullish?
The strategic partnership and growing EDU market signal strong demand for REE’s solutions, similar to past successful collaborations leading to stock price increases.
How important is it?
The article outlines a direct strategic partnership that could significantly influence REE's growth trajectory and market presence.
Why Long Term?
As the EDU market expands and REE solidifies its position, benefits will accrue over time, much like the positive trends observed in other tech partnerships.
REE Automotive Collaborates with Cascadia Motion to Launch Next-Gen Electric Drive Units
TEL AVIV, Israel, Dec. 29, 2025—REE Automotive Ltd. (NASDAQ: REE), a leader in automotive technology focused on software-defined vehicle (SDV) solutions, has announced a strategic partnership through a non-binding Memorandum of Understanding (MOU) with Cascadia Motion, LLC, a subsidiary of BorgWarner Inc. This collaboration aims to develop and commercialize a new generation of compact electric drive units (EDUs) that incorporate REEcorner technology for the global OEM market.
Key Features of the New Electric Drive Units
The upcoming EDU product will be developed jointly by REE and Cascadia Motion, leveraging the latter's iM-125 drive unit, which combines the motor and inverter functionalities. The new units will be designed to accelerate the development of electric vehicles (EVs) for original equipment manufacturers (OEMs).
- Projected Market Growth: The global EDU market is anticipated to experience a compound annual growth rate (CAGR) of approximately 9% from 2025 to 2035, effectively doubling in size by 2035.
- Safety Standards: The new EDUs will support high levels of functional safety, meeting ASIL-D standards.
- Future-Ready Features: The drive units will include capabilities for secure, stable over-the-air (OTA) updates to improve efficiency and accelerate time-to-market.
Operational and Strategic Implications
Through this phased commercialization plan, REE will provide Cascadia Motion access to its existing EDU assembly line, tooling, and supplier network, enhancing manufacturing capabilities. Joseph McHenry, General Manager of BorgWarner Portland and the Cascadia Motion brand, stated, “Integrating Cascadia Motion’s iM-125 drive unit with REEcorner technology bolsters our portfolio of off-the-shelf electric drive solutions.”
Daniel Barel, CEO and co-founder of REE Automotive, commented on the significance of the MOU, noting it represents “a natural progression of our three-year collaboration,” and emphasizes REE’s commitment to accelerating the industry’s shift towards software-defined, by-wire mobility.
Innovative Zonal SDV Technology
REE’s SDV technology architecture replaces traditional systems with centralized, zonal controls that streamline design processes and reduce wiring requirements. This architecture merges the REEcenter ECU, REEzonal ECUs, and REEgateway to create a robust performance network. The goal is to simplify the vehicle development lifecycle, making vehicles adaptable to market demands.
Combined with Cascadia Motion's propulsion systems, this advanced zonal architecture is expected to enhance safety and performance for OEMs pursuing software-defined vehicle technologies.
Contact Information and Future Outlook
As REE (NASDAQ: REE) continues to grow in the automotive sector, it remains focused on providing scalable, futuristic solutions tailored to the evolving needs of OEMs. For more information, please visit www.REE.auto.
For media inquiries, contact Keren Shemesh at Media@ree.auto. For investor relations, reach out to Hai Aviv at investors@ree.auto. BorgWarner media inquiries can be directed to Michelle Collins at mediacontact@borgwarner.com.