Company: REE
Filing Date: 2025-05-15
Form Type: 20-F
Source: 0001628280-25-025661
Chunk: 80

Company: REE Automotive Ltd.
Filing Date: 2025-05-15
Form: 20-F
Item: Item 3
Chunk 80
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 is limited and partial compensation value of direct damages that are caused by terrorist attacks or acts of war, REE cannot assure you that this government coverage will be maintained or that it will sufficiently cover REE’s potential damages. Any losses or damages incurred by REE could have a material adverse effect on its business.

Moreover, several countries, principally in the Middle East, still restrict doing business with Israel and Israeli companies, and additional countries may impose restrictions on doing business with Israel and Israeli companies if hostilities in Israel or political instability in the region continues or increases. Similarly, actions of certain international bodies along with activists who advocate for the boycott of Israel, have developed and may continue to foster a negative perception of Israel and/or its citizens, which may include its businesses. For example, the 2024 ruling of the International Court of Justice with respect to Israel’s actions during the current Gaza war and the International Criminal Court’s November 2024 arrest warrants for Prime Minister Benjamin Netanyahu and then-Defense Minister Yoav Gallant have enhanced anti-Israeli political efforts. The foregoing efforts by countries, activists, and international bodies, particularly if they become more widespread, may materially and adversely impact our business and/or supply chain, including if any suppliers or partners terminate or seek to terminate our commercial relationship due to such efforts.

In addition, many Israeli citizens are obligated to perform several days, and in some cases more, of annual military reserve duty each year until they reach the age of 40 (or older, for reservists who are military officers or who have certain occupations) and, in the event of a military conflict, may be called to active duty. In response to increases in terrorist activity and/or regional conflict, there have been periods of significant call-ups of military reservists, including in response to the October 7, 2023 attack and subsequent war. REE’s operations and business could be disrupted by such call-ups, particularly if such call-ups include members of REE’s management.

Political instability in Israel could also disrupt REE’s operations. Having held five general elections between 2019 and 2022, government policy is subject to regular disruptive changes. The current government of Israel had pursued changes to Israel’s judicial system in 2023, which sparked protests, and has recently renewed its efforts to effect such changes. Additionally, Prime Minister Benjamin Netanyahu is currently standing trial on corruption and it is not clear to what extent

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this will affect the stability of the government. Actual or perceived political instability in Israel or any