REE Automotive Expected to Supply Cascadia Motion with Corner Technology Used in Electric Drive Units for Global OEM Market

Rhea-AI Summary

REE Automotive (Nasdaq: REE) announced a non-binding MOU with Cascadia Motion (a BorgWarner subsidiary) to jointly develop, manufacture, commercialize, and sell a next‑generation compact electric drive unit (EDU) that integrates REEcorner technology with Cascadia Motion’s iM-125 motor+inverter for global OEM programs.

The arrangement contemplates a phased commercial plan with a royalty-bearing agreement, a time‑limited exclusive distribution option for Cascadia Motion, access to REE’s EDU assembly line and tooling, and planned off‑the‑shelf availability via CascadiaMotion.com. Industry research cited projects ~9% CAGR in the global EDU market from 2025–2035 with the market roughly doubling by 2035.

News Market Reaction

+5.75%

13 alerts

+5.75% News Effect

+26.4% Peak in 25 hr 7 min

+$2M Valuation Impact

$31M Market Cap

0.8x Rel. Volume

On the day this news was published, REE gained 5.75%, reflecting a notable positive market reaction. Argus tracked a peak move of +26.4% during that session. Our momentum scanner triggered 13 alerts that day, indicating notable trading interest and price volatility. This price movement added approximately $2M to the company's valuation, bringing the market cap to $31M at that time.

Data tracked by StockTitan Argus on the day of publication.

Key Figures

EDU market CAGR: 9% CAGR EDU market growth: 2x by 2035 Voltage: 400 V +5 more

8 metrics

EDU market CAGR 9% CAGR Global EDU market from 2025 through 2035

EDU market growth 2x by 2035 Global EDU market size expected to double by 2035

Voltage 400 V REE EDU performance @ gearbox output

Peak torque (30s) 3000 Nm REE EDU performance @ gearbox output

Peak power 100 kW REE EDU performance @ gearbox output

Max speed 835 rpm REE EDU performance @ gearbox output

Max cont. torque 2150 Nm REE EDU performance @ gearbox output

Weight 54 kg REE EDU performance @ gearbox output

Market Reality Check

Price: $0.7090 Vol: Volume 170,095 is 1.52x t...

high vol

$0.7090 Last Close

Volume Volume 170,095 is 1.52x the 20-day average of 111,832, indicating elevated pre-news activity. high

Technical Shares at 0.7565 are trading below the 200-day MA of 1.32 and sit 92.61% under the 52-week high.

Peers on Argus

Momentum scanner shows only CREV in motion, down 7.51% without news. Other auto-...

1 Down

Momentum scanner shows only CREV in motion, down 7.51% without news. Other auto-parts peers in the static list had mixed to negative moves earlier, but no same-day news cluster or broad, confirmed sector-wide move tied to this announcement.

Historical Context

3 past events · Latest: Nov 18 (Positive)

Pattern 3 events

Date	Event	Sentiment	Move	Catalyst
Nov 18	SDV collaboration MOU	Positive	+15.8%	Non-binding MOU with Mitsubishi Fuso to evaluate REE as SDV supplier.
Nov 11	Proxy supplement filing	Neutral	+0.5%	Supplement to proxy statement ahead of special shareholder meeting.
Jul 03	Nasdaq bid-price notice	Negative	+4.9%	Nasdaq notification of non-compliance with $1.00 minimum bid requirement.

Pattern Detected

Positive collaboration news previously coincided with upside moves, while negative compliance headlines showed a divergent, mildly positive reaction.

Recent Company History

Over the last six months, REE has combined strategic collaborations with listing and governance milestones. On Jul 3, 2025, it disclosed a Nasdaq minimum bid-price deficiency with a 180-day cure period ending Dec 29, 2025, yet shares rose about 4.94%. In November, governance-related proxy materials produced a neutral price response. By Nov 18, 2025, a positive SDV-focused MOU with Mitsubishi Fuso aligned with a strong 15.8% gain. Today’s Cascadia Motion MOU extends that SDV and EDU collaboration theme with another global OEM-linked partner.

Market Pulse Summary

The stock moved +5.8% in the session following this news. A strong positive reaction aligns with pri...

Analysis

The stock moved +5.8% in the session following this news. A strong positive reaction aligns with prior moves where collaboration news, such as the Mitsubishi Fuso MOU that preceded a 15.8% gain, was rewarded by the market. The Cascadia Motion MOU adds another OEM-linked partner and leverages REE’s EDU and SDV architecture as the EDU market is projected to grow at 9% CAGR. However, shares remain far below the 200-day MA and 92.61% under the 52-week high, highlighting execution and listing-compliance risks.

Key Terms

electric drive unit, software-defined vehicle, over-the-air (ota) updates, asil-d, +2 more

6 terms

electric drive unit technical

"sale of a next-generation electric drive unit (EDU) based on REEcorner technology"

An electric drive unit is the compact assembly that turns a vehicle’s electrical energy into the motion that moves the wheels, combining the electric motor with its gearbox and control electronics — like an engine and transmission packaged together for an electric car. It matters to investors because its efficiency, cost, reliability and scalability directly affect a maker’s vehicle range, performance, production expenses and profit margins, and it is a key part of supply-chain and competitive positioning.

software-defined vehicle technical

"an automotive technology company that develops software-defined vehicle (SDV) technology solutions"

A software-defined vehicle is a car whose capabilities, performance and user features are driven primarily by software running on its electronic systems rather than fixed mechanical parts, similar to how a smartphone gains new features through apps and updates. For investors this matters because revenue and value can shift from one-time hardware sales to ongoing software services, faster feature upgrades and broader aftermarket opportunities, while introducing dependencies on software development, cybersecurity and regulatory compliance.

over-the-air (ota) updates technical

"through secure, stable over-the-air (OTA) updates"

Wireless software updates delivered directly to devices (phones, cars, appliances, medical equipment or other connected hardware) without needing physical access or a service visit. For investors, over-the-air updates matter because they let companies fix bugs, add features, improve security and extend product life quickly and cheaply, affecting cost control, customer satisfaction, ongoing revenue and legal or reputational risk — think of them as remote tune-ups for digital products.

asil-d technical

"intended to support higher levels of functional safety, including ASIL-D, and to improve efficiency"

ASIL-D is the highest safety classification under automotive functional-safety standards, meaning a component or software must meet the strictest requirements to prevent life-threatening failures. For investors, an ASIL-D designation signals greater engineering complexity, higher development and certification costs, and stronger barriers to entry — but also potential competitive advantage and reduced liability once achieved, similar to a top safety rating on a consumer product.

zonal architecture technical

"REE’s SDV technology is a purpose-built foundation that replaces legacy domain systems with centralized, zonal control"

Zonal architecture is a design approach that divides a system—such as a data center, cloud deployment or large building—into separate zones that handle specific functions, isolate problems, and control access. For investors it matters because this layout improves reliability, security and scalability: like putting important items in separate locked rooms so a single accident or outage won't spoil the whole operation, which can protect revenue and reduce costly downtime.

ecu technical

"REE’s zonal architecture combines the REEcenter ECU, REEzonal ECUs, and REEgateway into a high-performance network"

A European Currency Unit (ECU) was a unit of account made by combining several national European currencies into a single value, like a weighted shopping basket that tracked the collective worth of those currencies. Investors care because financial contracts, historical prices, and long-standing liabilities may be denominated or referenced in ECUs, so understanding it helps compare past values, convert legacy figures into current currency terms, and assess contractual obligations tied to that unit.

AI-generated analysis. Not financial advice.

• Cascadia Motions (a wholly owned subsidiary of BorgWarner Inc.) to manufacture, commercialize, and sell a new generation of compact electric drive unit (EDU) integrating REEcorner technology with Cascadia Motion for inverter-motor modules OEM programs globally.
  
• Drive units expected to be available as off-the-shelf products at CascadiaMotion.com
  
• According to industry research estimates, the global EDU is projected to double by 2035, growing at a compound annual growth rate (CAGR) of approximately 9% from 2025 through 2035.
  
• REE anticipates the distribution of its REEcorner-based EDUs under a phased commercial plan, including a royalty-bearing arrangement that enables BorgWarner to manufacture the EDU.
  

TEL AVIV, Israel, Dec. 29, 2025 (GLOBE NEWSWIRE) -- REE Automotive Ltd. (Nasdaq: REE) (“REE” or the “Company”), an automotive technology company that develops software-defined vehicle (SDV) technology solutions, today announced a strategic non-binding Memorandum of Understanding (“MOU”) with Cascadia Motion, LLC (a wholly owned subsidiary of BorgWarner Inc.) (“Cascadia Motions”). The MOU outlines cooperation across manufacturing, commercialization, and sale of a next-generation electric drive unit (EDU) based on REEcorner technology for global OEM electrification programs. The new EDU product will be jointly developed by Cascadia Motion and REE.

As part of an expected phased commercial plan, including a royalty-bearing agreement, REE would grant Cascadia Motion an exclusive, time-limited option to distribute a uniquely packaged EDU that integrates Cascadia Motion’s iM-125 drive unit (motor and inverter) with REEcorner technology. Together, the companies aim to offer a compact, cross-platform EDU that is designed to help OEMs accelerate EV development. The new EDU combined with REE’s vehicle control units is intended to support higher levels of functional safety, including ASIL-D, and to improve efficiency and time to market through secure, stable over-the-air (OTA) updates.

REE also plans to provide Cascadia Motion with access to its existing EDU assembly line, tooling, inventories, and supplier network to support manufacturing of the combined EDU Units, subject to negotiation of final terms and conditions.

“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. “This collaboration reflects our commitment to delivering innovative, ready-to-integrate drive units that help OEMs reduce development time and streamline vehicle launch.”

This arrives at a time when, according to certain industry research estimates and publications, the global EDU market is expected to grow by a compound annual growth rate (CAGR) of approximately 9% from 2025 through 2035. These publications further expect the EDU market size to double by 2035 due to increased demand for electric vehicles. REE believes that this arrangement positions both companies to offer OEMs a scalable, advanced EDU solution with near-term availability.

“We believe that this MOU with Cascadia Motions represents a natural progression of our three-year collaboration and reinforces our mission to accelerate the industry’s transition to software-defined, by-wire mobility,” said Daniel Barel, CEO and co-founder of REE Automotive. “We believe this collaboration positions us to meet global demand at scale while laying the groundwork for next-generation, fully by-wire solutions.”

In addition to the EDU-focused product offering, the parties plan to evaluate demand for complete SDV solutions, including standalone REEcorner units and REE’s software products, which can supplement this offering or present additional capabilities for OEMs. REE’s SDV technology is a purpose-built foundation that replaces legacy domain systems with centralized, zonal control that simplifies design, cuts wiring, and accelerates development of software-defined vehicles. REE’s zonal architecture combines the REEcenter ECU, REEzonal ECUs, and REEgateway into a high-performance network that unites software packages of advance vehicle dynamic, chassis control, body control, autonomy integration, safety systems, and connectivity. This integrated approach is designed to simplify complexity, accelerated development, and future-proof vehicle programs that aim to integrate seamlessly into diverse commercial OEM plans.

The MOU builds on REE’s momentum as OEMs increasingly seek modern, software-defined architectures that shorten development cycles and unlock new vehicle configurations, such as low and flat chassis design, improved functional safety, and on-going secure and stable OTA updates. REE’s advanced zonal SDV architecture integrates seamlessly with legacy systems to improve safety, performance, and reliability. By combining this architecture with Cascadia Motion’s propulsion systems, the companies believe they are positioned to support OEMs transitioning toward software-defined vehicles built for continuous improvement and long-term adaptability.

REE EDU Performance @ Gearbox Output
Motor Type	Permanent Magnet
Voltage	400 V
Peak Torque, 30s	3000 NM
Peak Power	100 kW
Max Speed	835 rpm
Max Cont. Torque	2150 Nm
Max Cont. Power	57 kW
Gear Ratio	19.17
Cooling	Water-Glycol (8LPM @65°C)
Weight	54 kg

About REE Automotive
REE Automotive (Nasdaq: REE) is an automotive technology company that develops and produces software-defined vehicle (SDV) technology designed to manage vehicle operations and features through proprietary software. REE’s advanced Zonal SDV Architecture is designed to integrate seamlessly with legacy systems to improve vehicle safety, performance, and reliability. By centralizing key vehicle functions, the architecture seeks to enhance modularity, redundancy, and stability, and to enable safer and more efficient vehicle platforms. Powered by secured AI and deep over-the-air upgradability, REE’s technology allows for continuous updates and improvements throughout a vehicle’s lifespan. This makes Powered by REE® vehicles adaptable to customer and market changes and designed with future autonomy and connectivity in mind. REE was the first company to FMVSS certify a full by-wire vehicle in the U.S. Its proprietary by-wire technology for drive, steer, and brake control removes the need for mechanical linkages, supporting flexible design and optimized performance. Through its approach of “complete not compete,” REE enables original equipment manufacturers and technology companies to license its SDV technology, allowing them to design and build vehicles tailored to their specific requirements using REE’s scalable, future-ready platform. www.REE.auto

About BorgWarner:
For more than 130 years, BorgWarner has been a transformative global product leader bringing successful mobility innovation to market. With a focus on sustainability, we’re helping to build a cleaner, healthier, safer future for all.

Media Contact
Keren Shemesh
Chief Marketing Officer for REE Automotive
Media@ree.auto

Investor Contact
Hai Aviv
Chief Finance Officer for REE Automotive
investors@ree.auto

BorgWarner Media Contact
Michelle Collins
Global Director, Marketing and Public Relations
mediacontact@borgwarner.com

Caution About Forward-Looking Statements
This press release includes certain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These include, among others, statements regarding the performance of the terms of the MOU; the expected supply of REEcorner technology and REE-designed components for use in Cascadia Motion’s electric drive units; the anticipated development, manufacturing, commercialization, distribution, and sale of a next-generation EDU integrating REEcorner technology; the expected availability of drive units as off-the-shelf products; the anticipated phased commercial plan and royalty-bearing arrangement; the potential grant and exercise of any exclusive, time-limited option; the expected timing and scope of any supply, inventory utilization, tooling access, supplier network use, and manufacturing ramp; the parties’ evaluation of demand for complete software-defined vehicle solutions and additional product opportunities; the expected growth of the global EDU market; the belief that the arrangement positions both companies to offer OEMs a scalable, advanced EDU solution with near-term availability; the belief that the collaboration positions REE to meet global demand at scale while laying the groundwork for next-generation, fully by-wire solutions; and the anticipated benefits of the collaboration for OEM programs.

These forward-looking statements are based on current expectations and assumptions and involve risks and uncertainties that may cause actual results to differ materially from those expressed or implied. The memorandum of understanding is non-binding and does not create enforceable obligations to purchase, sell, manufacture, commercialize, distribute, or supply any products, and does not include firm purchase orders or guaranteed volumes, notwithstanding certain optional purchase mechanisms and conditional minimum purchase provisions. Any commercialization, product availability, supply volumes, exclusivity arrangements, royalties, manufacturing rights, or other economic terms will depend on the negotiation and execution of definitive agreements and the placement of purchase orders, customer demand, successful technical development, operational readiness, and the parties’ ability to obtain required supplier and commercial arrangements, and may not occur as currently contemplated or at all. Factors that could cause actual results to differ are discussed in the sections entitled “Cautionary Note Regarding Forward-Looking Statements,” “Risk Factors,” and “Operating and Financial Review and Prospects” in REE’s annual report filed with the U.S. Securities and Exchange Commission (the “SEC”) on May 15, 2025, as updated by REE’s subsequent filings with the SEC. The forward-looking statements in this press release speak only as of the date of this press release, and we undertake no obligation to update any forward-looking statements.

A photo accompanying this announcement is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/e012b46f-cbee-47b1-8136-045f60e03f15

FAQ

What did REE (REE) announce on December 29, 2025 with Cascadia Motion?

REE signed a non‑binding MOU to jointly develop and commercialize an EDU integrating REEcorner with Cascadia Motion’s iM‑125 for global OEM programs.

Will the REE‑Cascadia Motion EDU be available for purchase on CascadiaMotion.com?

The companies expect the EDU to be offered as an off‑the‑shelf product on CascadiaMotion.com, subject to final terms.

Does the MOU with Cascadia Motion include manufacturing and royalties for REE (REE)?

Yes; the MOU contemplates manufacturing cooperation and a phased, royalty‑bearing arrangement allowing Cascadia Motion to manufacture the EDU.

What market growth do REE and Cascadia Motion cite for the global EDU market?

They cite industry research estimating approximately a 9% CAGR from 2025 through 2035, with the market expected to double by 2035.

Will REE provide manufacturing support for the combined EDU product?

REE plans to provide access to its EDU assembly line, tooling, inventories, and supplier network to support manufacturing, subject to final negotiation.