Samvardhana Motherson Pours $15 Million into REE Automotive
Samvardhana Motherson International Ltd (SAMIL), a leading automotive components manufacturer, is set to invest up to USD 15 million in the innovative auto technology company, REE Automotive. This strategic investment will be made through SAMIL’s wholly owned subsidiary, MSSL Consolidated Inc.
Samvardhana Motherson Invests $15 Million in REE Automotive
Samvardhana Motherson International Ltd (SAMIL), a leading automotive components manufacturer, is set to invest up to USD 15 million in the innovative auto technology company, REE Automotive. This strategic investment will be made through SAMIL’s wholly owned subsidiary, MSSL Consolidated Inc.
“SAMIL can leverage manufacturing capabilities for components and integration for ‘REEcorner’ module, and platform assembly to support full vehicle assembly, including assembly of P7 electric trucks in the USA. Reinforcing tier-0.5 status,”
SAMIL’s exchange filings.
Upon completion of the transaction, SAMIL will hold a significant stake in REE Automotive, acquiring 11% of diluted shares and 19% of non-diluted shares. This investment marks a significant step forward for SAMIL, as it gains access to REE’s cutting-edge technology and expertise in electric vehicle platforms.
By leveraging its manufacturing capabilities, SAMIL can play a crucial role in supporting REE’s production of the ‘REEcorner’ module, a revolutionary electric vehicle platform. This collaboration also opens doors for SAMIL to participate in the assembly of full electric vehicles, including the P7 electric trucks, in the USA. This strategic move reinforces SAMIL’s position as a Tier-0.5 supplier, solidifying its presence in the global automotive landscape.
Samvardhana Motherson’s Investment in REE Automotive: Key Details
Samvardhana Motherson International Ltd (SAMIL) will finalize its investment in REE Automotive within the next 30 days. The transaction will be executed in cash, solidifying SAMIL’s strategic partnership with the innovative automotive technology company.
REE Automotive, a publicly traded company listed on Nasdaq, specializes in designing, developing, and integrating critical vehicle components into a comprehensive modular platform tailored for commercial electric vehicles. These advanced platforms are ideally suited for mid and last-mile delivery operations, addressing the growing demand for sustainable transportation solutions.
“SAMIL will also be entering into a supply chain management agreement with REE Automotive to accelerate its industrialisation in a mutually beneficial commercial construct,”
SAMIL’s exchange filings.
With headquarters in Israel and additional operations in Coventry, UK, and Austin, Texas, USA, REE Automotive maintains a global presence and is well-positioned to drive innovation in the electric vehicle industry.
Samvardhana Motherson and REE Automotive Strengthen Partnership
Samvardhana Motherson International Ltd (SAMIL) and REE Automotive have entered into a supply chain agreement that will leverage their combined strengths to enhance operational efficiency and accelerate electric vehicle adoption.
The strategic partnership will involve sharing of efficiencies based on mutually agreed commercial constructs, capitalizing on SAMIL’s extensive global footprint and operations. This collaboration will streamline supply chain processes, reduce costs, and ensure a reliable and sustainable supply of components for REE’s electric vehicle platforms.
REE Automotive has a robust order book of 600 trucks from leading OEMs, which are scheduled for delivery by 2025. This significant pipeline of orders underscores the growing demand for REE’s innovative electric vehicle solutions and positions the company for substantial growth in the coming years.