Samvardhana Motherson Invests in REE Automotive
POWER & RENEWABLE ENERGY

Samvardhana Motherson Invests in REE Automotive

Samvardhana Motherson International (SAMIL), through its wholly-owned subsidiary MSSL Consolidated, is acquiring up to 3.64 million Class A shares in Israel-based e-mobility company REE Automotive for $4.122 per share, totaling a $15 million investment. This purchase translates to an 11% stake on a fully diluted basis and up to 19% on a non-diluted basis in REE Automotive. The transaction is expected to finalize within 30 days.

REE Automotive specializes in designing, developing, and integrating vehicle components into a modular platform for commercial electric vehicles (EVs), primarily targeting mid and last-mile delivery applications. The company operates manufacturing facilities in Coventry, UK, and Austin, Texas, US. REE reported a turnover of $1.6 million in 2023.

In addition to the equity investment, SAMIL will enter into a supply chain management agreement with REE Automotive. This agreement will allow SAMIL to manage the entire supply chain, including sourcing, managing, and integrating modules for REE. SAMIL has already secured orders for approximately 600 trucks from original equipment manufacturers, with execution planned by 2025.

In 2021, REE Automotive received $17 million in funding from the UK government as part of a broader $57 million investment coordinated by the Advanced Propulsion Center, supporting the UK’s goal to promote zero-emission vehicles and decarbonize its transport network.

In India, electric vehicle sales reached a record 1.53 million units in 2023, marking over a 50% increase from the previous year. EVs accounted for 6.4% of total automobile sales, according to the Ministry of Road Transport and Highways. Globally, the number of EVs is projected to surpass 100 million by 2026 and reach 700 million by 2040, reflecting significant growth from the 27 million registered at the beginning of 2023, according to BloombergNEF.

Samvardhana Motherson International (SAMIL), through its wholly-owned subsidiary MSSL Consolidated, is acquiring up to 3.64 million Class A shares in Israel-based e-mobility company REE Automotive for $4.122 per share, totaling a $15 million investment. This purchase translates to an 11% stake on a fully diluted basis and up to 19% on a non-diluted basis in REE Automotive. The transaction is expected to finalize within 30 days. REE Automotive specializes in designing, developing, and integrating vehicle components into a modular platform for commercial electric vehicles (EVs), primarily targeting mid and last-mile delivery applications. The company operates manufacturing facilities in Coventry, UK, and Austin, Texas, US. REE reported a turnover of $1.6 million in 2023. In addition to the equity investment, SAMIL will enter into a supply chain management agreement with REE Automotive. This agreement will allow SAMIL to manage the entire supply chain, including sourcing, managing, and integrating modules for REE. SAMIL has already secured orders for approximately 600 trucks from original equipment manufacturers, with execution planned by 2025. In 2021, REE Automotive received $17 million in funding from the UK government as part of a broader $57 million investment coordinated by the Advanced Propulsion Center, supporting the UK’s goal to promote zero-emission vehicles and decarbonize its transport network. In India, electric vehicle sales reached a record 1.53 million units in 2023, marking over a 50% increase from the previous year. EVs accounted for 6.4% of total automobile sales, according to the Ministry of Road Transport and Highways. Globally, the number of EVs is projected to surpass 100 million by 2026 and reach 700 million by 2040, reflecting significant growth from the 27 million registered at the beginning of 2023, according to BloombergNEF.

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